Business PROPERTY Insurance
The Importance of
Business Property Insurance
No business wants to suffer property losses due to accidents, storms, or other hazards. Small business owners should consider commercial property insurance as one of their first and most important risk management tools. Otherwise, unexpected disasters, from fires to vandalism, can cost so much that they risk your company’s financial future.
Commercial property insurance reimburses businesses for property losses, so they can promptly repair damages and return to full productivity. Working with experienced agents and insurance companies will often help businesses minimize their risks and avoid claims. Call upon The Insurance Hub for assistance from professional agents who care about your business and work with top carriers
How Commercial Property Insurance Works?
Some business property policies only protect against one or a few specified hazards, but most small businesses buy a package of protection. These companies will often explore the benefits of a business owner’s policy, which includes commercial property and general liability insurance in one simplified bundle.
Insurance companies typically offer premium discounts for buying multiple policies, though only some businesses or industries may qualify for a package deal. Also, many companies will need more flexibility or broader protection than a typical BOP provides, so they might need to invest in separate policies.
What Property Insurance for Businesses Covers?
Coverage can vary by policy or insurance company. This list briefly explains what a typical business property insurance policy covers:
Structures
The policy covers any permanently installed structures named in the contract. Businesses can choose to cover their buildings at their actual or replacement value.
Contents
Coverage includes property kept inside the buildings and other structures the company uses to conduct business. Businesses can insure property that they own or lease.
Custodial Property
The policy may include any property other people own, but the business keeps it in its care. For instance, a phone repair shop may keep a customer’s phone for a few days.
Note that property insurance will include and exclude specific causes of losses. For instance, companies may need a National Flood Insurance Program policy to cover floods caused by weather events. Also, property insurance might cover computers but not electronic data.
Also, standard policies may exclude some types of property from coverage. Common examples include cars and bullion. Businesses can work with an experienced insurance agent to evaluate their risk. In some cases, they may choose to add additional coverage to a property policy or buy a separate policy for specific hazards, like earthquakes or data breaches.
Some businesses rent space instead of owning it. In this case, the lease should specify the required insurance on leased buildings, and insurers can tailor coverage to conform to these terms.
How to Buy Commercial Property Insurance
Established commercial insurance companies have a lot of experience with business property claims. Naturally, insurers would rather have clients who take measures to avoid losses resulting in insurance claims. According to the Insurance Information Institute, businesses that invest in reducing risks typically suffer fewer losses and claims.
Thus, a good insurer will leverage its experience to help customers minimize the chance of making claims. Taking an insurer’s suggestions can also result in lower premiums because they reduce risks. At the same time, businesses can rely on their insurance company and experienced agents to suggest the right coverage for a unique business. These measures will ensure the lowest possible premiums and high-quality coverage.
Call the professional, licensed business insurance agents at The Insurance Hub to get started. These agents will help you find the right insurance, compare prices, and work as a partner who cares about your company. You can enjoy peace of mind, focus on running your business, and know you’re doing everything possible to protect valuable property.
