As a small business owner, you have put so much into your business, which is why it is vital to protect the investments you have already made. Though, no matter how careful you are, there is always the chance that your business can be damaged, either by vandalism, natural disaster, or sheer bad luck.
If any of these were to happen, would your commercial property be covered? Well, this depends on your commercial property insurance. A commercial property insurance policy is the key to reducing risk as a business owner, and this ensures financial protection for your livelihood, employees, and customers.
Why Would I Need Commercial Property Insurance?
Regardless of the type of business or industry you operate in, coverage for loss of property or damage is vital when disaster strikes. Disaster can happen in all types of industries, whether it is service, manufacturing, or retail. Even if you run a small business, events like hail or wind can damage your commercial property, causing huge financial loss and hurt your business, bottom line.
Vandalism and theft can also have a significant impact on your business irrespective of its location. These events and risks are unpredictable, which is why it is vital to always carry the right insurance policy. You may want to purchase a commercial property insurance policy in conditions such as:
- you keep or own equipment, work tools, or have devices like computers on the premises
- you keep valuable records and papers in the office
- you have a home office, and your assets are not covered under your homeowner’s insurance coverage
- you have an inventory like a retail business
- you are a tenant renting a property that requires commercial property insurance
What Does Commercial Property Insurance Cover?
Commercial property insurance varies from one policy to the other. Generally, commercial property insurance covers more than just the structure where you run your business. Your insurance policy should also cover the contents of the building, in addition to the property the business owns.
In a retail setting, the insurance policy might cover product inventory. While in the office, it might cover computers, furniture, servers, or even recreation of records and documents. The policy may also extend to certain items outside the building, such as fences, landscaping, the company sign, or external structures. All these items can impact the business’s ability to function regularly.
Some insurance policies may even include critical business assets when used off-premises. For instance, you can take the company’s computer on a business trip, and it gets stolen or lost. Depending on the commercial property insurance, you may be able to file a claim to get it replaced. Commercial property insurance also offers coverage for loss of revenue or income in case of property loss.
To learn more about commercial property insurance, contact Redwood Agency Group today!