Entrepreneurs who own commercial property need commercial property insurance to protect against fire, storms, and other disasters that can shut down the operation. If you are unable to operate in your normal place of business, it can adversely affect your revenue. Here's a look at what you should know about how commercial property insurance works.
Just like other forms of insurance, commercial property insurance protects against losses in value due to unforeseen damages. If your facility is damaged by a natural disaster, theft, or an accident, your commercial property coverage will pay to repair your building and replace equipment, tools, and whatever else you use as a means of production. The coverage will pay to replace office desks, tables, fixtures, and other furniture, along with appliances. If you have stored inventory items that are damaged, they will be covered as well. Perishable items such as food are also covered by restaurants and other places that serve food.
If your operation is so small that it only occupies an office in your home, you may not need commercial property insurance. It depends on the type of work you do. If customers come to your residence, then it's a good idea to have commercial property insurance in case someone gets hurt on your property. Your homeowners policy probably doesn't cover events tied to your home business. An owner should start with a basic business insurance plan, such as a Business Owners Policy (BOP). From there, the owner can customize a plan with schedules and riders. A schedule protects specific valuables named in the policy. Riders add special types of coverage or extend coverage limits. Businesses that rent office space should pursue business renters insurance.
The types of commercial property coverage you choose should reflect the specific risks of your business. Every piece of valuable equipment for generating revenue should be covered by your plan. You should share a list of possessions with your insurer to ensure each item is covered. Some items, such as unique machinery, may need special coverage.
It depends on the insurance company and the policy regarding how much it covers. In some cases, you may need a separate policy for each location. Another option is blanket insurance, which bundles several policies together at a discount.
There are various ways to approach business insurance. Whatever you decide, it's important to financially protect the assets that make your business possible. Do you still have questions related to commercial property insurance? Contact us at GrayStone Insurance Group, and one of our experts will be happy to answer your questions.
