Insuring Business Property

Any business owner would implement security measures to prevent the loss of damage to his business property, but a conscientious one would do more than this. How do you insure your business assets from destruction by fire, theft, or flood? Find out all about insuring business properties from our guide.

One of the most common insurance that business owners take is property insurance to protect their business properties from damage or loss.

These properties are buildings and its contents such as equipment and computer, furniture, inventories, as well as properties that are at the custody of the business. If a business operation is interrupted because of property damage or loss, the owner of a policy that includes business interruption insurance could be reimbursed for the expenses resulting from the damage or loss and for the loss of income during the interruption. Reimbursement for property insurance claims could be in actual cash value at the time of the replacement (which factors in depreciation) or replacement value, which covers the actual amount needed to purchase new equipment that was lost.

Property insurance covers common property risks such as theft, damage or loss due to fire. Sometimes, property insurance could be incorporated with liability insurance and casualty insurance and made into what is called a business owners’ policy. Of course the more risks the policy covers, the higher the premium is. For policies that cover multiple risks, each risk is covered only to a certain extent. And policies have certain exclusions that the insured business owner must take note of so that he does not wrongly assume about nonexistent coverage in his policy.

Insurance for Specific Disasters

For businesses prone to specific disasters because of the nature of their work and their location, there are specific insurance to cover particular incidents, such as flooding, earthquake or sleet damage. Insurance costs money and so it is important that a business is insured just exactly for its needs, with the most significant risks prioritized. Being underinsured leaves a business at risk against uncovered disasters; being overinsured means the business is shelling out money when it should not have. Consult insurance brokers for advice. Resources to see: Independent Insurance Agents and Brokers of America, National Association of Professional Insurance Agents, Property Casualty Insurers Association of America.

Property Insurance Saving Tips

One way that a business could waste money is by not reviewing its policies thoroughly so that it ends up with policies that duplicate coverage for certain risks. To save on money for insurance needs, business owners are advised to take advantage of insurance packages from a single carrier. They are also encouraged to implement tight security measures to prevent the incidence of loss and thus keep their claims record low. Low claims record could help reduce insurance premiums.


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