Basics on Business Property Insurance for General Partnerships
Owning and operating a business can provide a flexible lifestyle. But it also comes with responsibility. It is important to make sure your general partnership is adequately covered.
Many business owners file insurance claims annually due to lost or damaged property. In fact, 30 percent of small business owners have been affected by burglary and theft or fire in the past five years requiring them to replace property at their business.
This article will explore the importance of business property insurance for general partnerships and what it covers. Read on to learn how it can help protect your business.
Business Property Insurance for General Partnerships
Before we dive in, let's define business property insurance. Property insurance differs from general liability insurance.
It can cover the contents within a business location. Liability insurance can cover third-party legal matters a business may be liable for.
Business Owners Policy
If you purchase a Business Owners Policy (BOP) through PolicySweet®, you can receive both types of coverage. Your business can also receive coverage for cyber insurance in our BOP.
Cyber security insurance can protect businesses if the private information they store digitally is compromised.
Our BOP helps to cover several types of businesses, including cleaning companies, food services, and contractors.
PolicySweet also offers a HomeHQSM policy for home-based businesses. This policy includes business property insurance as well.
HomeHQ is best suited for those looking for business property insurance in a residential space. Those running a business from home should consider HomeHQ as it may cover business-related damage that a homeowners or renters insurance policy may not.
What Does Property Insurance Cover?
Insurance for the business property can cover contents inside a business location. This includes physical items such as tools, equipment, furniture, and fixtures.
Property insurance for partnerships can cover the assets owned or rented by a business. It can cover a wide variety of unexpected situations, such as:
- Burst Pipes
- Fire & Smoke
Preparing for the situations listed above is difficult, but accidents can sometimes happen. Having the proper insurance coverage in place can help save your business from the high costs of repairing or replacing property out of pocket.
Many businesses use their facilities to store inventory. Unfortunately, this can create significant losses if there is a workplace incident. Theft, vandalism, fires, explosions, and other damage can destroy inventory stored in an office.
A business property insurance policy could cover the costs of lost or damaged merchandise and products stored at a business location.
Business personal property insurance can cover the loss of high-end equipment. That can include computers and computer equipment.
If your computers and computer accessories get stolen or damaged, it can cause your business to incur high unexpected costs. Many companies suffer from the blow of replacing expensive technology.
Property insurance can cover such replacement costs.
However, a business property insurance policy will likely not cover the contents stored on your business computers. If you are looking to protect the information on a computer or other technology device, you may want to consider a separate policy like cyber insurance. Luckily, it is included in a BOP from PolicySweet.
Loss of Income
Unexpected situations may also cause a loss of profits for your business.
This is particularly true if damages to tools and equipment cause you to suspend regular business operations. Major interruptions often cause businesses to halt operations for days or even weeks at a time. Sometimes they have to wait to resume until the equipment is repaired or replaced.
During this time, businesses can suffer a loss of profits. Business owners may also have significant payroll expenses to manage.
Business property insurance can help cover these unexpected losses and it can relieve businesses of stress during a challenging time.
What's Not Covered?
Property insurance does not cover damage caused by flooding or earthquakes, but it often covers damage created to property due to other natural disasters.
Some businesses require more than just property insurance. Businesses with employees may wish to purchase Workers’ Compensation in case of employee injuries.
Taking Necessary Precautions
Although property insurance may cover loss or damage to property, there are steps businesses can take to practice due diligence and help avoid the need to file claims.
In general partnerships, it can be vital to ensure the parties involved with handling business property are taking steps to help avoid loss of property.
Buildings should be locked and secured with a controlled entry. Valuable equipment should be stored in locked closets and cabinets when it is not in use.
Heat should be left on to avoid low temperatures that can cause pipes to burst. Appliances should be cleaned and maintained to help prevent gas leaks or fires.
Business owners should keep track of the value of stored tools, equipment, and inventory at all times. Taking these steps can help you avoid property issues and file an accurate claim if it's required.
Should You Purchase Property Insurance?
You might be wondering if your business should acquire property insurance. In reality, most small businesses obtain property insurance.
Property insurance for partnerships can be vital. As a business owner, you should examine whether or not you can float property loss or damage. If not, you may want to purchase a policy.
If you own or rent tools and equipment, you should consider property insurance. If your business has physical assets or if you store inventory, you should also consider buying property insurance.
There are several reasons property insurance may be suitable for your business. It can help you manage unexpected expenses, and you could feel more secure about your income and livelihood if an accident happens.
The Cost of Property Insurance
If you're wondering how much property insurance costs, you should know there's a wide range of factors that can impact your policy.
Each business has different coverage needs and different amounts of property that may need to be covered. Businesses can be exposed to different risks depending on the industry, which can impact the cost of this type of insurance.
The location of your business and its level of security may also affect the cost of your insurance.
Property value and the value of inventory on-site can even play a factor.
Insurance policies could be influenced by the size of a business, as well as the coverage limits you are looking for.
Customizing Business Personal Property Insurance
No two businesses are alike. Each industry comes with its own unique needs, assets, and risks. PolicySweet business property insurance is customizable.
Extending property insurance means different things to different businesses. For janitorial companies, property insurance may cover cleaning supplies. For restaurants, it can cover the loss of furniture, silverware, and appliances.
Our team at PolicySweet can help you create a unique policy that meets your business needs. It may mean adjusting the limits to your coverage or adding additional types of protection.
Regardless of your concern, we can help you customize a policy to help put your mind at ease.
Why Get Business Property Insurance from PolicySweet
Purchasing a BOP or HomeHQ coverage from PolicySweet automatically permits you to receive business property insurance.
There are several reasons to purchase insurance with PolicySweet. In addition to being customizable, our policies are easy to digest.
Our representatives are available to provide assistance during the process of obtaining a policy or to help with any questions. And you typically do not have to wait very long for your policy to kick in. Your business can be insured as soon as tomorrow!
Obtaining coverage from PolicySweet is simple. You just have to answer a few questions about your business. Then you will receive a quote and you can accept the terms of the policy if you like what you see.
Get Property Insurance for Your General Partnerships
Going into business is a considerable commitment and comes with a lot of responsibility. It is crucial to be prepared for most situations or challenges your business could face.
Business property insurance for general partnerships can help protect owners financially from unexpected expenses. Property insurance can cover the loss or damage to business property and inventory. It may also extend to loss of profits and payroll fees if business interruptions occur.
If your business is looking for property insurance coverage, PolicySweet can help. Request a quote today, we can help you protect your business.