No matter how detailed your business plans are, tragedies come unannounced. If you are not prepared, chances are that a natural disaster or unforeseen legal or financial trouble will threaten to sink your business. In order to avoid disasters, you should have business property insurance coverage for fixed and moveable assets related to your business. Business interruption insurance will help you recover from calamities, and help you recover the losses.
Types of Business Property Insurance:
When opting for insurance coverage for your business, you can either get a combined protection policy or opt for separate insurance policies. The type of coverage varies depending on what is being covered.
If your business is located in a flood prone area, then you need to get business property insurance that will cover it against flood damage. For this, you will need to find out how many times the area has been flooded.
Earthquakes can strike at any time and there is no way to predict them. For this reason, many insurance companies do not offer earthquake insurance as part of standard business property insurance package. To get earthquake insurance, you will probably have to buy a separate policy and pay a separate deductible. In addition, earthquake insurance typically does not protect businesses against loss of profits caused by damage to property; it simply covers the actual value of the property.
A special Terrorism Risk Insurance is available for businesses. This insurance does not cover employees who may be injured through acts of terrorism at the workplace.
Combined Business Property Insurance:
Business property insurance is either combined or separate. Under the terms of the separate business property insurance, only the actual value of the property insured is covered. You will not be compensated for loss of profits due to accident or crime, just the loss of property value. This is the reason business owners prefer combined business property insurance.
Combined business property insurance includes property insurance as well as liability risks. It covers the damage caused to other parties through fires or other accidents on your property and injuries caused by faulty equipment.
When opting for comprehensive business property insurance, you should make sure you also have adequate coverage for worker’s injuries, business disruption and general liability. Unless your business is covered on all fronts, just having business property insurance will not offer protection enough.
Protecting your assets from natural disasters, crime, theft and liability can save you a lot of worry later. These situations can stop your profits in their tracks, but business property insurance can help your business recover faster. If you wish to know more about the kind of business property insurance that is the best for your business, see your local small business consultant.