What is Business Property Insurance and Why You Might Need It?
Do you have the right sort of business insurance?
Running your own business is an exciting and rewarding experience. And if you want to keep running it and see success, you need to have the right insurance in case the worst happens. But if you are new to insurance, you might not know what coverage you need. Or even what business property insurance is.
Don't worry, we're here to help! Keep reading for our guide to business property insurance and why you may need it.
What Is Business Property Insurance?
You most likely spent a lot of time and money to set up your business. Whether you are a large company or a small business, you should consider protecting your business equipment. Business insurance can help to protect your business assets in case an unexpected event occurs.
Business property insurance provides coverage for your business property and is often referred to as commercial property insurance. It could help to protect items like furnishings, inventory, equipment, petty cash, and more.
It can cover the expenses associated with replacing or repairing furniture, fixtures, and equipment. Business property contents insurance may also cover the costs of replacing stock and equipment if it's damaged or stolen. Your business could even be covered for having more stock on-site than usual. For example, if you have periods of high volume selling.
For insurance for businesses, there are two types of equipment cover:
- Replace as New: When damaged beyond repair or stolen, the policy replaces the items with new ones
- Indemnity Policies: If items have wear and tear, this gets taken into account. You'll get a replacement at its current value, not the price you paid for the item.
Business property insurance is a safety net, to help guard your assets. No matter what industry you're in, it could help to protect your business if disaster strikes.
What Does Business Property Insurance Actually Cover?
Each policy will differ in what it covers so it is important to learn what coverages are available Some items that business property insurance could provide protection against, include:
- Vandalism and Theft: If your business experiences a break-in and your business equipment is stolen. You could be covered for expenses associated with replacing the equipment.
- Fire Damage: If your business suffers stock loss or furniture loss from fire or smoke damage. Insurance could help pay for replacements.
- Wind: If your business experiences wind damage, you could be covered for the expenses associated with repairs and for the damage it caused.
- Loss of Income: If a covered loss has impacted your business and you can't operate as a result, you may be covered.
- Cash and Stock On-Site: The loss of cash or stock from a covered event could be covered.
- Weather Damage: If a covered weather disaster interrupts your operation and damages business equipment and property. You could receive financial assistance to replace or repair your business equipment and property.
- Breakdown Replacement & Repair: When your furniture, fixtures, and equipment break down, you may be covered for repairs so that you can get back to work.
It is important to understand what your insurance will cover. A cheaper policy may not cover a vital piece of equipment or provide the type of protection your business needs. If you need help finding a policy to match your needs, PolicySweet has live agents standing by. Feel free to contact us today to answer any insurance questions you may have or to better understand what is included in your policy.
Why Is Business Property Insurance Important?
Having business property insurance isn't required by law, but it could be an important lifeline for your business. Even large businesses can rarely afford to get back to work without help if disaster strikes.
Accidents and disasters can happen to anyone and can strike at any time. If an incident occurred and you needed to replace or repair property essential to your business, would you be able to afford it? Insurance can help pay for expenses associated with covered losses.
You should also consider the chance of significant income loss. If you need to make replacements or repairs, you may not have any income coming in to cover it.
Business income insurance is included in many business property insurance packages. It usually covers a set amount of income. But, it can be an invaluable lifeline to help protect you, your employees, and your family from a covered loss.
Business Property Insurance: An Investment for Your Business
So there you have it! Business property insurance isn't required by law. But, it could be a worthwhile investment for your business. Not to mention the peace of mind it could bring you to know that your business assets may be protected.
At PolicySweet, we provide business property insurance as part of our Comprehensive Business Owners Policy (BOP). Our industry-leading insurance is a one-stop policy for small businesses, providing business property insurance along with general liability and cyber insurance. So, if you are looking to purchase a business property insurance policy for your company, get a quote for BOP coverage today!
