Your business' success is an important part of your financial support and solvency. A good business owner knows how to make money fairly. However, they also knows how to protect the assets they have. The fewer the threats to your business, the better your chances of never having to make a commercial insurance claim.
If you take time to secure your property and assets, you lessen the chances of damage to the business. Damage usually equals cost. Asset and property security can help you avoid losses that result from damages. Your commercial property insurance can help you in instances like these.
Getting Commercial Insurance
Commercial insurance is usually not a single policy. It may contain various elements of coverage. When combined, these policies often will provide a generally comprehensive blanket of coverage. As each business is different, how they structure their policies will also differ. Prices for coverage will also differ. To get the right business insurance, you should talk to your business insurance agent.
Your agent can often tailor business insurance to help cover unique property risks. You’ll need to get coverage based on what risks face your particular operation. You might consider investing in:
- Property Coverage: Can protect the structure of your building, including your roof, foundation and interior features. Additionally, your policy can also often protect the personal assets inside your business. This may include furniture, equipment and other possessions.
- Renters Personal Property Coverage: If you rent your location, you may not need to protect the building. Your landlord’s policy might do that. However, you may still have to protect your owned property in the space. Renters’ insurance will usually cover business assets owned by the company.
- Business Interruption Coverage: Following a damaging event, the business might have to close for repairs. However, they may still owe costs for items like a mortgage or worker salaries. If the business cannot profit, it may put these costs on the line. Business interruption coverage can help the company still pay the bills during repairs.
- Cyber Liability Insurance: Businesses likely have digital property. This may include customer data, accounts receivable and other information stored on computers. Various cyber threats could strike at any time. They might cause data destruction or the theft of valuable information. Such actions could threaten the security of both the business and its clients. Cyber liability coverage could help the business fight or fix data theft or losses. It may also help the business assist clients in protecting their identity.
- Equipment Breakdown Coverage: If you own specialty equipment, standard property insurance may not provide adequate coverage for its value. Should this equipment malfunction, it may put a dent in your operations. Equipment coverage can help you afford to make repairs to valuable items. It may also help you make up lost costs because of interruptions caused by the breakdown.
- Flood and Earthquake Insurance: Standard property insurance may not cover weather events like floods and earthquakes. Property owners may need to get this coverage based on the risks of such occurrences in their area.
You may be able to combine some of these types of coverage into a policy known as a Business Owners Policy or BOP. Often, they include property, liability and business interruption coverage. BOPs can serve as a convenient way for businesses to get the coverage they need in one formula.
Nonetheless, a BOP may not be right for your business. The limits imposed by this policy may not fit your needs based on the qualities of your business. Talk to your agent about how a BOP can benefit you, then see if it’s the right path to take for your insurance.
Securing Your Business from Insurance Risks
Even if you have commercial property insurance, nothing beats responsibility. You want to use your policy only following unavoidable accidents. Your priority should therefore be to minimize property risks throughout your business.
Damage might arise from events like storms, fire, theft, vandalism or other items. After getting insurance specific to your business, take steps to secure the property:
- See to your structure’s integrity. Inspect your roof, foundations and other structures on the property regularly. If you can fix small problems up-front, you may be able to reduce or prevent potential damage. If you rent the property, keep in contact with your landlord about developing damages.
- Secure and maintain all equipment and property belonging to you. Regular maintenance and care might help prevent losses.
- Create emergency preparedness plans to enact in the event of a threatening situation.
- Always maintain security for all items on the property. You should invest in personnel security, cyber security and premises security mechanisms.
With the proper care, you can increase property reliability at your business. Never forget, the lower your risks, the lower the chances of having to file a business insurance claim.