Owning a business is stressful enough without having to add extra things to worry about. If you don’t have the proper coverage for your business, then you are doing just that. If you don’t have enough insurance, then you might be lying awake at night worried that you are at a major risk if something goes wrong. Businesses have been shuttered because they did not have the right insurance, and there’s no reason to think that it couldn’t happen to you.
One of the most important coverages you can get is commercial property insurance. This type of coverage will protect any property that your business owns. This can include your building, the surrounding property, your equipment, inventory, signage, and fencing, among other things. Damage to these things can come in many forms. You could be the victim of vandalism or theft, or there could be a weather event or natural disaster that strikes your business. When this happens, you want the disruption to your business to be as short as possible, and you don’t want to exhaust your funds paying for repairs and replacements. Commercial property insurance will help with all of these difficulties.
What Type of Businesses Need Commercial Property Insurance?
The fact is, almost all businesses require commercial real estate insurance. It is rare to find one that doesn’t. If your business has a location, equipment, or tools, then you need commercial property insurance. Here are some other examples.
Small Businesses
You might think that your business is too small to need property insurance, but that is most likely incorrect. You may have a computer or other equipment on your premises that need protection. Your building or office space should also have coverage. If it gets damaged or destroyed and you are not able to work out of your normal space, then it can seriously affect your productivity and revenue.
Contractors
Contractors often work out of their homes, or from their vehicles. They travel from job site to job site. However, with tools and equipment, plus the possibility of damaging a client’s property, commercial property insurance is a must. Even if you are as safe as you possibly can be, there is always the risk that something can happen.
Service Providers
If you are a professional service provider then you require commercial property insurance as well. For instance, you could be a photographer, marketing consultant, graphic designer, or financial consultant. You may have very little equipment or property involved, but you still need coverage. Your home policy may not cover you for damage or destruction of business-related property.
The Benefits of Commercial Property Insurance
Commercial property insurance comes with protection against several possible risks. There is no telling when your business might be a victim of any one of them. Here are some of the benefits of having protection.
Protection From Disasters
No matter how much you prepare, bad things can happen. There are many possible threats to your business. Natural disasters can be unexpected and devastating. You could have a fire that is caused by your own staff, from a visitor, or from someone who wished to do you harm. Cold, rain, and snow can all wreak havoc on your property, such as freezing equipment or damaging your building’s foundation. Flooding is also a common concern, since it can happen in a large rainfall, is hard to prevent, and can cause massive damage. It’s always vital that you check with your provider to see what risks are covered and which aren’t. You don’t want to discover you don’t have the right protection after you need it.
Replacement and Repair Costs
Most commercial property insurance policies come with a deductible. After you have paid your deductible, your insurance will provide compensation for repair to your property or equipment. It may even cover the entire cost of replacement if your coverage is high enough. If you have a retail shop, for example, you could get compensation for replacing your inventory and repairing your building if a tornado strikes.
Interruption to Your Business
If something happens to your business, you may need to close down for a period of time. Either it is unsafe to get into the building, or it is being used for an investigation, for example Commercial property insurance will help by providing you with funds so that you don’t have to shut down your business entirely. You can still pay your employees and your bills without cutting into your business savings. You may also be able to choose a policy option that will fund the relocation of your business so that you can get back up and running in no time.
What Does Commercial Property Insurance Cover?
Every policy will have differences in what risks are covered. Make sure that your policy covers anything that might reasonably strike your property. The types of things that are covered include:
- The structure of your building
- Equipment and tools
- Furniture
- Lighting
- Signage and fixtures (interior and exterior)
- Inventory
- Supplies
- Computers and devices
- Landscaping
Insured Circumstances
Policies generally do not include everything that could pose a threat to your business property. The most common perils that are included in commercial property insurance include:
- Water damage
- Earthquakes (depending on location and availability)
- Storm damage from hail and wind
- Theft
- Vandalism
- Fire
- Sewer backup
- Flooding
Remember to always check with your broker to be sure of what you are and aren’t covered for.
Insurance is not a spot in your budget where you should be leaving yourself short. There are many types of coverage that you need for your business, and commercial property insurance is just as important as any other. The fact is that not having the right coverage could be a death knell for your business. If you are struck by a natural disaster or suffer serious damages in a fire, you may end up having to close down for good if you cannot cover the repair and replacement costs. Take away those concerns by purchasing the right amount of commercial property coverage.
Laila Azzahra is a professional writer and blogger that loves to write about technology, business, entertainment, science, and health.