6 Ways Business Property Insurance Can Protect Your Bottom Line

When you decided to start your own IT consulting firm, you (hopefully) purchased IT consultant insurance policies like General Liability Insurance and Errors and Omissions Insurance to protect your new business from the cost of potential lawsuits. What kinds of things might trigger a lawsuit? Try these:

  • You accidentally knock your client’s flat-screen TV off the wall while trying to hook your laptop up for a presentation.
  • A client is injured when she trips over loose carpeting in your office.
  • You miss a major deadline for a client, setting back the launch of his new website.

While protection against liability is important, you also want to protect your own assets, including your business property.

What Can Business Property Insurance Cover?

When deciding, “Do I need business insurance for my property?” you should consider the many ways Business Property Insurance can protect the items and space you need to keep your business running. Here are a few examples of how your coverage can help protect your business belongings:

  1. Repair or replace computers and monitors damaged by vandals. Your office is located above a popular Irish bar, and when you come in to work on March 18, you discover some of your neighbor’s patrons must have decided to take the party upstairs the night before – trashing your equipment and spilling green beer everywhere, including all over your computers. Getting everything fixed or replaced should be as simple as filing a claim with your carrier.
  2. Replace a stolen printer, laptop, and tablet. Say those same drunken revelers decided to commit burglary and steal some of your business equipment. Your Business Property Insurance can help pay to replace the stolen goods.
  3. Handle replacement costs for business property damaged or stolen at your home office. Your homeowner’s or renter’s insurance likely only provides limited coverage for any business property that is damaged or stolen from your home. However, if you have a Business Property Insurance policy in place, you should be covered if there is a break-in, fire, or theft at your home that impacts your business equipment.
  4. Replace stolen laptops or phones while away from the office. If you occasionally work remotely, say at your local coffee shop, your Business Property Insurance coverage goes with you. If a fellow coffee shop patron spills a latte on your laptop, or you space out and leave your tablet in the back of your car, the replacement costs should be covered under your policy.
  5. Repair damage to your office space. In addition to providing protection for stolen, damaged, or vandalized items, your Business Property Insurance can also pay to repair physical damage to the office itself if it is caused by covered events (like a burst pipe, fire, wind, or hail).
  6. Replace income while covered damage is repaired. If your business is unable to function for a while because of a covered event (like a burst pipe), you may be covered for the lost wages owed to you and any employees if your Business Property Insurance includes Business Interruption Insurance. If it doesn’t, you can typically choose to add it as a rider. Check out “How Would You Handle a Business Interruption?” for more on this coverage.

How Much Does Business Property Insurance Cost?

The answer is different for every IT business owner, but one way you can save on the cost of IT insurance like Business Property Insurance is by purchasing a Business Owner’s Policy (also called BOP Insurance). BOP Insurance is a combo package that bundles Property Insurance with General Liability Insurance. Because the two polices are sold as a package deal, you can typically receive a small discount.

A Business Owner’s Policy is typically only sold to:

  • Very small businesses.
  • Business that are viewed as low-risk.

It’s a great way to take advantage of your low-risk cred and pocket savings for things you could use around the office, like a new French press coffee maker or a pinball machine for the employee lounge.