What is Business Property Insurance?

It is highly important to protect your business location and all equipment that comes along with it. This is what business property insurance is for. Business insurance is also known as commercial property insurance and helps keep your business property secure whether you rent or own it.

Business property insurance is beneficial because it can help cover repair or replacement expenses if something is damaged, destroyed, or even stolen. The following are all things that are covered under a business property insurance policy:

• Tools and equipment
• Personal property
• Computers
• Furniture
• Outdoor landscaping
• Accounts receivable
• Inventory

What's covered under a business property insurance policy?

Business property insurance covers everything from bodily injury to property damage and can protect you from the following:

• Theft- If someone were to break into your business and steal your belongings such as equipment, you would be protected.
• Fire damage- Insurance coverage can help cover your replacement expenses if your business’s furniture gets destroyed as a result of a fire.
• Lost income- This involves not being able to run your business due to a covered loss.
• Customer injuries- You will be covered if a customer were to get injured while on your business property such as trips and falls.

The best way to protect your business is by determining what the risks are early on. This is important, so you can try your best to prevent them from occurring.

Depending on the risks that your business carries as well as the type of business property you have, you may want to expand your coverage. If you carry equipment with you to different work sites or are in an area that is prone to flooding, you may want to consider additional protection that can protect against the following risks including:

• Natural disasters- This coverage will protect your business from damage sustained from earthquakes, floods, hurricanes, tornadoes, and more.
• Damage to mobile property- If your business transports items, you should consider either equipment floater insurance or inland marine insurance. These policies cover tools, equipment, and other business items that travel from one location to the next. It will also cover business items that are under temporary care.

You can also consider commercial auto insurance if your business owns a company vehicle. However, you will need to purchase a separate commercial auto insurance policy since this is not typically covered under commercial property insurance.

Does a homeowner's insurance policy cover business property?

Homeowner's insurance and business property insurance are not the same. You will receive more coverage for your business under a commercial policy compared to a regular policy for homeowners insurance. Your homeowner's policy may or may not consist of coverage for your business property.

If you run a home-based business and have a homeowner's insurance policy, you should know that your homeowner's policy will not protect your equipment, files, or anything tech-related to your business. Your homeowner's policy will not protect your commercial property if it is not kept in your home. To make sure that you have enough protection and coverage, it is highly recommended that you obtain a separate business property insurance policy.

Who is business property insurance for?

If you are asking yourself “Do I need property insurance?”, you may need casualty and property coverage at the minimum if you want to protect your business. A good recommendation is to obtain a business property insurance policy and a general liability insurance policy. If you fail to protect your business, you will be held responsible for paying damages and claims out of pocket which can jeopardize your business.

It doesn’t matter what industry your business is in. Commercial insurance can help keep your business protected. A few of the most commonly covered industries that take advantage of business insurance are:

• Retail shops
• Plumbers
• Pet grooming
• Financial institutions
• Electrical contractors
• Advertising, media services, and graphic design
• Barbershops

Business Property Insurance VS. Liability Insurance

Business property insurance will protect your physical assets while liability insurance will provide you with the financial assistance you need in the event your company faces a legal challenge such as a lawsuit. Typically, the majority of businesses carry both coverages since they provide protection in different situations.

Business liability policies typically help pay for different legal situations such as cyber liability insurance, employment practices liability, professional liability, and general liability.

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