When starting a business, there are several things to consider, including the need to get commercial property coverage. It pays for the repair and replacement of specific business assets in the event of a covered event such as fire, theft, or vandalism. It’s especially critical because many small firms and startups don’t have the funds to replace what they need to stay in operation.
What Does It Cover?
Commercial property coverage protects your assets, such as structures and buildings, as well as objects, such as equipment, furniture, inventory, supplies, and fixtures, from damage or loss. It may also be used to cover the costs of repairing or replacing anything that has been stolen, damaged, or destroyed, including property and equipment that is not yours but is in your care and custody.
How to Get Coverage
Property insurance can be acquired separately or as part of a larger Business Owner’s Policy that covers both property and general liability. Your insurance agent can assist you in tailoring your policy to address the unique risks that your company faces, such as determining the sort of Property insurance coverage you require.
Insurance companies normally offer two types of coverage:
- Replacement cost – covers the cost of repairing or rebuilding a property using materials of similar or equal quality.
- Actual cash value – pays the current value of the damaged property, as well as the cost of rebuilding or replacing it, minus depreciation.
By researching commercial property coverage, you can give yourself some peace of mind regarding your business.