Business Property Insurance
What Is It?
Business property insurance protects a business' physical assets. Whether you own your work building or lease a workspace you should protect your assets with business property insurance. Business property insurance covers for damages to the building and contents due to a covered loss, such as a fire. The policy will also cover theft of certain business items. However, some items may not be covered under this policy and may need to be listed on a separate inland marine policy. You should always discuss in detail with your agent what assets the company has and if those items would be covered under this policy form. The policy can also include coverage for increase in expenses due to property loss or loss of income.
Why Is It Important?
If you are leasing a space for your business this coverage may be required. Even if you are not required to carry business property coverage it is highly recommended. If your business were to suffer a sudden loss such as a fire and all of your assets were compromised would you be able to re-purchase your assets and get up and running in a timely manner? Many small businesses could not. The loss of your business assets also ties into loss of income. If you do not have the required equipment to run your daily operations you will most definitely suffer a loss of income, in turn compromising the stability of your business and potentially losing something you've put all your hard work into.