The Basics of Business Property Insurance
Your livelihood is dependent on the survival of your business, so it is imperative that you protect it against any potential threat—big or small.
For instance, a fire could destroy your business’s warehouse and the contents inside, or a burst frozen pipe could damage important documents and valuable papers.
Worse, you could have trouble paying your employees during a loss because your funds are devoted to repairing damage.
Get the property insurance you need
This coverage comes in many forms to suit your specific needs. Before purchasing coverage, take a complete inventory of all your business property and discuss the possibilities of what can go wrong to determine how much you need to insure. Ideally, a disaster recovery plan or exercise with your risk advisors is helpful. This important step ensures you will have adequate coverage to continue your business in the event of a covered loss.
Types of Property You May Need to Insure
- financial assets
- Furniture and supplies
- Office equipment/computers, etc.
- technology data
- customer accounts
- construction equipment
- property in transit
- Ordinary payroll
- Money and securities
- Buildings and other structures (leased or owned)
The list goes on.
Types of Property Insurance Policies
Basic property insurance covers losses due to fire or lightning, including the cost of removing property as a way to protect it from further damage.
Owning a basic property insurance policy from Blue Lion Insurance Advisors, LLC could protect your building if a natural disaster were to occur, such as being struck by lightning or burned down.
Should you want to purchase more than basic business property insurance coverage, you can buy a standard policy that provides coverage for extended perils, such as:
- hail, earthquakes
- acts of terrorism
- Smoke damage
- civil commotions
- Vehicles that damage your property
Beyond that, coverage for vandalism and malicious mischief can also be included.
You should ask yourself if you are fully covered when you are in the process of obtaining a new business property insurance policy, it is often difficult to gauge just how safeguarded you actually are.
Property Reimbursement Options
- Cash value – usually paid out when a property is destroyed and damaged; insurances subtract the depreciation value from the replacement cost
- Replacement cost – monetary amount needed to reconstruct a structure or repairs from damages; this does not take depreciation into account
It is typical for property policies to add a coinsurance clause, demanding policyholders pay a percentage of the cash value worth of the property; also known as cost sharing. This clause enables policyholder’s full coverage for any loss.
Not fully covering your property with comprehensive insurance may result in having to pay a percentage on all of the losses listed on the policy.
The next step is easy!
Call us today at (732) 649-1600 to learn how our business insurance advisors could get you the right Business Property Insurance coverage, at the right price, and superior service. You can also Request A FREE Insurance Quote on our site or Contact an advisor for more information.