Business Property Insurance Coverage
Every business needs protection in case the unthinkable should happen. For example, job-related injuries require workers' compensation insurance, and technical errors require errors and omissions insurance. In addition to protection from injury and lawsuits, business owners should invest in business property insurance.
Business property insurance is a special type of insurance that covers the company building as well as the contents owned by the company. Since there is no standard for commercial property coverage, it is the business owner's responsibility to carefully evaluate the policy he or she is given. Under the liability policy coverage, the building should be protected from damaging events such as fire, burglary and vandalism. It may not be enough to cover just the building; the aftermath of such damage should be covered as well.
One of the first questions a business owner should ask is, where will the business operate if its normal headquarters is not available? Will the property liability insurance cover the cost of renting a temporary facility and rebuilding the old headquarters? These are important questions to ask before signing on to any general liability and property insurance package. Always find out what the policy does and does not cover.
In addition to the necessary coverage of the building, all office equipment should be covered under your commercial property insurance program as well. Most property insurance policies should cover all equipment and property at the present market value. Therefore, it is the business owner's responsibility to keep track of all equipment costs with accurate financial records. However, this may not be enough, as a company would need the invaluable data lost in the catastrophic event, as well as compensation for the time lost in repair. The business property insurance must cover this also.
