Every entrepreneur should understand business property insurance 101 principles. A basic business property insurance policy covers fire damage, signage repair, replacement of stolen equipment, and other losses. You may need to amend your policy if your operation requires more protection from workplace risks. Here are important points to consider when reviewing your business property insurance.
Understanding Standard Business Property Insurance
A standard business property insurance plan generally protects your property from certain natural disasters, vandalism, and theft. Standard policies usually cover damages to buildings, computer equipment, and other company assets. Fire damage is a common claim, while other frequently filed claims often pertain to severe weather.
Certain natural disasters, such as flooding and seismic activity, usually are not covered by standard business insurance plans. You will need to amend your policy with riders that add such specialized coverage. The reason insurance agencies do not automatically offer this coverage in basic plans is that floods and earthquakes are often recurring events in certain regions. Insurance companies base policy features and pricing largely on risks.
Commercial Property Insurance Basics
As a business owner or manager, you should have a strong grasp of commercial property insurance basics so that all your valuable assets are covered. To ensure all items are covered, you should submit an inventory list to your insurer to have them appraised. The insurer will then have sufficient documentation that confirms the ownership and value of your assets.
Your commercial property insurance covers both indoor and outdoor belongings, including seating, fencing, and machinery. Talk with your insurance agent to discuss your policy and business goals to make sure your most valuable items are protected.
Property Damage from Severe Weather
Every region is prone to some type of weather or climate conditions that can cause property damage. Climate change is causing insurance companies to rethink policies as risk levels have increased for unpredictable catastrophic events. A standard business insurance policy covers storm damage to a certain limit, such as $500,000. If you want to increase this limit, you need to talk with your insurance agent about adjusting your policy.
In most cases, your basic business insurance policy will cover fire damage unless evidence shows that you or one of your associates intentionally caused the fire or if it is the result of negligence. Fires caused by conditions that could have been resolved by general maintenance inspections may not be covered in a standard plan.
Building fires can start in numerous ways and many times could have been prevented had the company regularly performed inspections. If a fire starts because of an employee error, it may not be covered unless employee error coverage is specifically written in the plan. Worn wiring can cause sparks to jump, which may cause a fire to spread. Such a condition is usually not covered in a standard plan because the problem could have been prevented from proactive maintenance.
Awareness of these business property insurance 101 principles will help you get the right coverage for your needs. Are you looking for an affordable business insurance policy? Contact the experts at First Insurance Solutions today. We look forward to assisting you with all your insurance needs.