How much will you be set back if something bad happened to your business property? Insurance is available to cover this. This coverage protects your business’s physical structure and assets from all sorts of damage caused by fire, burst pipes, vandalism, theft, storms, and so forth. The only things that might not be included are flood damage and earthquakes. Commercial property insurance is very similar to a regular homeowner’s policy in that regard. If your business is located in a flood zone or earthquake zone, you might want to add the protection on as additional coverage.
Here are some more details of things that are usually covered by business property insurance:
• Furniture (tables, desks, chairs, etc.)
• Tools, supplies, and equipment
• Some of the personal property kept at your place of business
• Outdoor structures and landscaping features, like fences and signs
• Computers and electronics
• All important documents, such as accounts receivable
This type of coverage is usually included in a business owner’s policy (BOP). If any of the above becomes damaged or lost, this insurance will help with the repairs, replacements, and liability costs due to losses. Losses due to theft might be covered as well.
How much does business property insurance cost? This really depends on factors such as the actual location and the crime rate of the area and whether it’s prone to extreme weather and natural disasters. The occupancy / industry factors in the costs as well. For instance, a realtor’s office is usually associated with fewer risks than a repair shop or store.
Business Property Insurance for Construction
Another factor is construction. What kinds of materials is the building made of? Is it an older building with outdated wiring, plumbing, etc..? It’ll probably cost more to insure it unless you take the time to have it renovated with modern, safer materials.
What about a home-based business? Your homeowners policy likely does not protect your business equipment or files. For the equipment, you can have it added on as an endorsement. For the actual files and technology, it might be worth checking into a custom / tailored small business policy that includes cyber security protection and insurance.
Regardless of your industry, at a minimum, you’ll need some type of property insurance for your business, along with general liability insurance. You don’t want to risk ever having to pay for damages and claims out of pocket, which will result in your business and maybe even your home suffering huge financial losses.
You can learn all about business property insurance, commercial insurance, BOP policies, cyber security coverage, and more at Hiscox Insurance. It’s the leading online commercial insurer for all types of businesses.