Regardless of the size of business or industry you serve, every business accumulates physical assets that are required to be successful. From your office furniture to the software on your employee’s computers, these items represent your investment in the success of your business. These assets are typically accumulated gradually over time, and if something happens to them, it can cost hundreds of thousands of dollars to replace them all at once. For the typical small business owner, this is more than they have on hand. This makes it hard for a business owner to rebound from a loss without going deep into debt.
Having commercial property insurance is one way to prepare for disasters that might impact the business and cover yourself in case of potential future losses. The typical property insurance policy covers the business building and the contents of the building, like computers, furniture, and any specialized tools needed to complete work. It can also cover damage done to fencing, landscaping, and signs on the exterior of the business property. Businesses that have a fleet of vehicles or extremely valuable inventory, like a jeweler, might need supplemental coverage to protect these items. Damages done to the main business property due to fire, vandalism, extreme weather, theft, water damage caused by burst pipes, smoke exposure, and other common causes are typically covered.
The cost of your premium for commercial insurance coverage is dictated by a few factors, including:
There can be many types of commercial property insurance that a business owner might need to purchase in order to be prepared for any disaster. For example, many general property insurance policies do not cover damages done due to flooding. A special policy may need to be taken out to cover these kinds of losses. In areas that are typically impacted by earthquakes, businesses may also need a special policy based on the risk assigned to the area where the business is located.
Just as you might hold several insurance policies in your personal life to cover your home, car and health, business owners may need a few policies to cover all the commercial property and types of losses that might occur. Some commercial property insurance policies have coverage that makes up for any lost profits while the business is closed due to property damages. This is sometimes called lost profits coverage. If a small business is gutted by a fire, for example, it can take several months to rebuild the location. While this rebuilding is happening, the business owner still has to pay debts, rent, any loan payments for commercial equipment or vehicles, and more expenses.
If you have a business and need commercial property coverage to help prepare yourself for anything, Alpine Castle Lake can help. Contact us today to find out more about commercial insurance coverage, Types of commercial property insurance and how it can benefit you to have a policy in place.