Whether you own or rent a property for business purposes, you should invest in commercial property insurance. Commercial property insurance exists to cover any damage to your physical assets due to unanticipated problems like fire, pipes that burst, earthquakes, storms, theft, and vandalism (note that there are usually separate insurance plans for flooding).
Commercial umbrella insurance is designed to protect your property or physical assets in circumstances when your commercial automobile or employer’s liability policies don’t apply. This means that your commercial property policy won’t come into effect until any other relevant policy limits have been reached. What is covered by the umbrella policy depends on the type of business you own, the types of coverages you already have in place, the kinds of assets you need to protect under the policy, and the risks that are not covered under other plans. Below are a few types of coverages provided by a commercial insurance umbrella plan that may not be available through other plans:
1. Buildings and Other Structures
This is perhaps the most obvious asset covered under a commercial property insurance plan, but it is usually the most important. If your business buildings are damaged for any reason—either via willful harm (e.g. vandalism) or a natural disaster—you’ll need to make sure you have the appropriate coverage in place to repair and/or rebuild.
2. Inventory
For some businesses, an inventory disaster (e.g. inventory that is lost, damaged, or stolen) can mean bankruptcy. Investing in coverage for your core business products is a smart business move to insure the overall well being of your company and its future.
3. Records
If you store information on a secured server, online, or even in paper files, there is always a chance that you will lose the information (e.g. through hacking incidents or stolen property). These incidents are becoming more and more common, so it is more important than ever to invest in their protection.
4. Computers
If you need to replace computers for your business (whether they were stolen, damaged, or misplaced), the costs can add up fast. Properly insuring your devices can make all the financial difference if disaster strikes.
5. Hired and Non-owned Auto Liability
This specific insurance plan covers any injuries or property damage caused by an auto accident involving yourself or your employees. Unlike typical commercial auto insurance, this plan applies to vehicles you “hire” (e.g. rental cars) or any cars your business does not own (e.g. employees’ vehicles). If your business uses cars that fall into these categories, it’s a good idea to invest in this coverage.
The Importance of Commercial Property Insurance
It’s important to ensure adequate coverage for these business assets if you have them. Without the proper insurance plans, business owners can be forced to pay out of pocket for lawsuits or any damages not covered by more general policies.
Often, insurance providers are able to tailor more broad protection policies to suit a business owner’s unique commercial property needs. You should not need to pay for coverage you don’t need, and you should have adequate coverage for everything you own. When designing this plan, insurance providers will consider your current physical assets and history of losses. They can also provide advice about which precautions you should be taking. Don’t wait to get the coverage you need. Get it today.
