Business Property Coverage

As you start your business, you will quickly realize how important your business property is to your business. Between the actual building you work in and the computers you use, you already have thousands and thousands of dollars in property, not including software and other equipment and materials you may need.

Losing any amount of property for your business can result not only in loss of that property but also in loss of income that comes from the use of that property. For example, if your computers are destroyed, you may lose money not only on the computers, but also you will have to do the work usually done by the computers by hand until you can replace them.

What Business Property Insurance Doesn’t Cover

Business property insurance covers major disasters such as fires and wind damage from tornadoes. However, there are several things that business property insurance will not cover. Floods, earthquakes, and acts of terrorism are generally not covered under standard business property policies.

These disasters are only covered if you buy a special policy in conjunction with the rest of your business owner’s and business property insurance. You should consult with your insurance agent to determine the likelihood of these types of disasters in the area where you run your business. For example, if you are near a large river or a fault line, you should consider buying optional insurance to cover these types of disasters.

Protecting Your Business Property

Although your business property will be covered by your insurance, you should take extra precautions to protect your property. You should have double copies of all important documents that are kept in a lockbox or other fire safe box. In addition, you should have a fire alarm and sprinkler system that is connected to your local fire department. Employees should be trained in disaster protocol such as emergency exit routes for employees and clients. Although some disasters are not covered under standard business insurance policies, your employees’ worker’s compensation is generally covered for employee injuries. You may also want to consider purchasing business interruption insurance in the event of a major disaster so that you and your employees will still have some income.

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