Business Property Insurance

Of course, every business needs protection in case the unthinkable should happen. For example, job-related injuries require workers' compensation insurance, and technical errors require E&O insurance. In addition to the protection from injury and lawsuits, business owners should invest in business property insurance.

Business property insurance is special type of insurance that covers the company building as well as the contents owned by the company. Since there is no standard for business property insurance, it is the business owner's responsibility to look carefully at the policy he or she is given, and evaluate it carefully. Under the coverage of business property insurance, the building should be protected from damaging events such as fire, burglary, and vandalism. It may not be enough to cover just the building, but the aftermath of such damage 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 business property 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 they do and do not cover.

In addition to the necessary coverage of the building, all office equipment should be under your business property insurance program as well. Most business property insurance should cover all the 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.