In order to ensure that your company’s physical assets are protected, your small business insurance must address property coverage. Although business property insurance isn’t a mandated requirement for owning a business, it’s still a smart idea to limit your vulnerability by purchasing a policy which addresses this need. It’s not uncommon for a good insurance policy to mean the difference between the life of a business or its untimely demise.
Different Coverage Levels
Although different insurance providers will offer different packages, there are basic coverages which are addressed through the typical business property insurance plans. Examples include damages which could result through fires or floods, interior plumbing or electrical problems, or other physical damage. Your policy may also protect against the internal theft of physical property by an employee. Oftentimes, benefits will also cover damages to fixed office features such as lighting systems, computers, manufacturing equipment or heavy machinery, and physical inventory.
Most business owners’ policies will also cover the physical property of any customers within your store, and any physical assets which are kept on your property by others. An example of this may be an electrical fire in a bike repair shop. If your bike is in for repairs and suffers more damage while on the premises, the owner of the bike (your customer) will receive benefits to cover their losses.
Basic policies will address the essentials, while broader forms of coverage may concern special circumstances like acts of terrorism. Depending on your protection needs, you may want to examine the different options which are available before making a final decision on a policy. For example, a business owners’ policy is a combination policy which provides coverage for both property and physical assets both within and around your physical property. This is a convenient hybrid between property and liability insurance policies.
Some policies will also cover income losses due to physical damages, plus the additional temporary costs of operating from a different physical location in that event. Some companies may offer this type of protection as a completely separate from of insurance, however, so read your policy carefully. Additionally, these types of additional small business insurance policies often do not cover vehicles or the loss of physical cash.