Operating a business comes with multiple risks. Business insurance adds layers of protection to help owners avoid losing everything. Before you finalize your policy, look over these business property insurance variables.
Business insurance helps cover your inventory and equipment if they are damaged in a fire or natural disaster and protects your property if you are a victim of theft. Property insurance is often bundled along with general liability insurance. Here’s a list of business property insurance variables that impact your policy.
The location of your business has an impact on business insurance. If your building is equipped with fire protection, your premium may be lower compared to areas that don’t have adequate fire protection. If you have an office building, your rates will be lower compared to operating a restaurant. If you share a building with a dangerous tenant, that may impact your premiums. If your building is made of flammable materials, your premium will rise. Talk with your insurer before starting a renovation project. Try to install fireproof walls, doors, and floors. It’s also a good idea to install an enhanced security system and fire alarm.
What Does a Business Property Insurance Plan Cover?
Property insurance covers your building and its contents. The policy also covers any damage to exterior structures on your property, such as a fence or outdoor signs. Property coverage protects all of your important documents and records. Your equipment is covered if it is damaged due to burst pipes, explosions, or acts of vandalism. However, property coverage doesn’t cover any damage caused by floods and earthquakes unless you amend your policy to add extra coverage.
Inland Marine Coverage
Your complete inventory is covered as long as the damage occurred while the items were still in the building. If you take any equipment off-site, you aren’t covered. Once the equipment leaves the premises, it becomes classified as inland marine coverage. You can amend your business insurance policy to include inland marine coverage. This type of coverage protects your equipment as you move it from one place to the next.
Other Variables That May Impact a Business Insurance Policy Costs
If you operate your business in a high-risk neighborhood, that can impact your premium. The industry that you operate your business in may also impact your policy. The amount of traffic throughout your business informs insurers about potential risks.
Other Types of Business Insurance Plans Available
- Professional Liability Coverage
Professional liability coverage protects your business against possible legal action as a result of an error on the job.
- General Liability
General liability coverage protects you if your business is responsible for injuring someone or damaging property.
- Workers’ Compensation
Workers’ compensation financially protects your business if there is an injury to an employee in the workplace. The policy covers your injured employee’s medical treatment.
Business property insurance protects you from potentially losing everything. If something were to happen to your prized inventory and you aren’t covered, replacing those items could be difficult. Our insurance experts at Advanced Insurance Group can help you assess your business insurance policy to ensure that you have the right coverage. Contact us today to schedule an appointment.