Opening your business means finding the most-appropriate location from which to operate. You might decide to rent the property, or buy it outright. Regardless of which course of action you choose, you need to have the appropriate property insurance for the assets you own. Therefore, talk to your business insurance agent about how each of the following types of coverage can help you out.
1. Commercial Property Structure Insurance
Perhaps the most prominent part of commercial property insurance is the structure or building insurance included on the policy.
Structure coverage applies to losses your business’s buildings sustain following unpreventable or unavoidable accidents. The policy will usually apply to your commercial building, and certain other assets such as signs and fixtures or furnishings attached to the exterior and interior of the building. How much the policy will pay depends on the limits and deductibles within.
If you do not own the building, but rent it, then renting usually frees you from the responsibility of having to insure the building itself. Still that doesn’t mean that the assets you do own will not need insurance coverage. Your insurance agent can help you determine the appropriate course of action to get coverage for the rental.
2. Commercial Possessions Insurance
Regardless of whether you own or rent the building, you will own numerous assets within the structure. Business insurance for both rented and owned buildings therefore needs to include coverage for the assets within the structure. Contents insurance can cover items like:
- Manufacturing equipment and machinery
- Computer equipment
- Certain personal possessions brought into the property
- Stock and products housed within
In cases where a covered accident, like a fire, severe weather or theft damages these items, then you might be able to file a claim for them. The policy will then compensate you up to its limits for their losses. Some policies will limit the maximum amounts of money they will pay for certain items, and deductibles will apply in certain claims.
3. Other Policies You Might Need
There are many types of losses that might not have coverage under the standard terms of your commercial property insurance. Therefore, you might need to expand your policy with certain additional coverage:
- Equipment breakdown insurance: Coverage pays when essential systems break down, and you need to pay to repair them.
- Inland marine insurance: This coverage can protect essential equipment and materials when you take them off the business property, such as when you transport items to a work site.
- Cyber liability insurance: In case of data losses on your computer system, this coverage can pay you for the costs of recovery, and the potential legal costs that might arise.
Keep in mind, property insurance is just one of many types of commercial insurance that you can place within your business. Let your agent guide you through the process of getting the right policies.