Every business has property. Even if you work from home, you most likely use a computer, printer, and office desk or table. Whether you are working out of your basement, or you have an industrial factory and warehouse, where you do business matters. Protecting the equipment, inventory, and the walls that surround your business is crucial.
When disaster strikes, many individuals worry about their home and their family. But what about your business and your employees? Most families take adequate steps to protect their home, but few provide adequate coverage for their business. There are three main kinds of business property insurance:
Special Business Property Insurance: This type of coverage is the most comprehensive form of business property insurance. It covers both basic and broad damage in addition to all direct physical loss that is included in your policy description.
Broad: Broad business property insurance includes a wider range of disasters than basic insurance, but is still not as comprehensive as special insurance. It may cover riots, theft, vandalism, and other unforeseen events.
Basic: Basic business property insurance covers damages from natural disasters such as fire, storms, and explosions.
It is crucial for business property insurance to cover damage to your building, inventory, or equipment caused by a covered disaster. For instance, if your office building is damaged by hailstorm, or is completely lost in a fire, it may be impossible to repair or replace without insurance. In addition, business property insurance also covers items such as laptops, furniture, and valuable documents.
Many people who run a business out of their home assume that homeowner’s insurance is a catchall. This is not the case. Business insurance coverage business property, homeowner’s insurance covers personal property.
There is a clear and distinct difference. If you attempt to use your homeowner’s insurance to cover a business loss, you may be severely disappointed when it comes to filing a claim. It is important to have two distinct and specific policies.
Many small businesses rent or lease a building office or unit. In most cases, the building itself is owned by a landlord or property management company. In the case of a disaster, the building itself will be covered with no action or payment required from you. However, anything inside is your responsibility to insure. This includes your inventory, computers, and other property specific to your own business. Even if you do not own your own space, the importance of business property insurance cannot be overstated.