Property insurance is an important component of your business as it protects a business from loss to the structure as well as the contents of the building. Your coverage needs can change as you expand operations, purchase more equipment, or do anything that increases value to your property.
A building owners insurance policy should be reviewed annually to determine if you have appropriate coverage in place. If a disaster strikes you want to be certain that any business insurance you currently have can help put your building back in shape so that you can continue to receive revenue.
The importance of having an adequate amount of coverage cannot be overstated. Keep this in mind when considering the purchase of any business property insurance. An agent familiar with this line of coverage can help to eliminate some of the most common misunderstandings concerning insufficient amounts or exclusions in the policy limits that could pose problems down the road.
Power outages and equipment breakdown
Mechanical equipment, including water pumps, ventilation fans, elevators, escalators, motors, engines, and other mechanical equipment used to run your building needs separate coverage. Without an equipment breakdown policy as part of your building owners insurance, if a piece of equipment vital to operations ceases to function it can instantly place a building owner or tenants in a precarious situation.
Owning and running a building can be an enormous undertaking and comes with certain responsibilities. Theft, disaster, lawsuits, breakage, and business interruption can be extremely disruptive to your business, affecting those who utilize your building. That’s why discussing all options for different policies with your insurance partner is recommended in order to get the best coverage options for your property.
Business property insurance coverage limits should be in an amount sufficient to rebuild if necessary and replace equipment at current replacement prices. Make sure to review any and all of the changes to the structure, including upgrades, new fixtures, carpeting, office furniture, and safety and fire prevention, or any other improvements that have an effect on the valuation of the property.