Every business needs insurance. This is pretty obvious to any business owner. However, you need to also realize that getting business insurance means investing in several types of coverage. Together, these different benefits will combine to offer your company assets the highest level of protection in the face of unanticipated challenges and liabilities.
One critical component of most commercial insurance policies is property insurance. It is designed to help a business owner cover the various furnishings, equipment and other belongings in their possessions. However, there are numerous possessions housed within almost any business, and you will have to tailor your benefits to adequately reflect their values. Here’s how you should consider optimizing your commercial property coverage.
Possessions And Contents Risks in Every Business
You want to do all you can to create a secure working environment. After all, the safer the workplace, the lower your risks of having to file a damage claim on your insurance policy. Still, there is always a chance that an unexpected hazard might strike, and whatever the occurrence, it could do damage to your company property.
Consider just a few of the accidents that could damage business contents.
- Thefts or break-ins could result in the loss of contents or their damage or vandalism.
- Fires within the operation could burn possessions.
- Severe weather could damage items stored outside (and inside).
- Machinery or appliances could break down unexpectedly.
- If you transport materials via road, then a car wreck could damage these items.
No matter how much you try to prevent hazards like these, you can’t eliminate the risk of these problems occurring. Commercial contents insurance will be there to help you pick up the pieces when these problems occur.
Understanding Business Contents Insurance
Whenever you experience property damage in your business, you’ll need to repair or replace the damaged items. Commercial contents insurance will make sure you get an adequate financial settlement to cover these recovery costs. It will enable you to protect your own solvency while still being able to clean up a big mess.
Contents coverage might insure:
- Stock and inventory
- Materials used to make products
- Furniture (desks, chairs, carpet, rugs)
- Electronics, such as TVs
- Heavy machinery and movable equipment
- Computer systems, smartphones and tablets
- Office supplies
Most commercial property insurance policies offer contents coverage automatically. However, when setting up your coverage, you will have to choose the policy limits that will offer you the most comprehensive settlement for a damage claim. This will mean tying your policy limit directly to the current market value of the items you possess.
Once you know the appropriate figure for the value of your company contents, the next step is to ensure that your policy covers items at their replacement cost value (RCV). This coverage will ensure you receive full compensation for your lost items at today’s market value.
Please note, you might have to ask your agent to add RCV coverage to your policy. Some policies will only pay an item’s actual cash value (ACV) at the time of the loss. Cash value usually is an item’s depreciated cost, and does not reflect an item’s like-new value. Therefore, to get a more substantial settlement, you might need to buy increased coverage.
Don’t Stop With Standard Contents Insurance Alone
While full contents insurance is a great starting point for your business’s property insurance coverage, it might not be all the coverage you need. Some of the items within your business might need specialty insurance options, such as:
- Inland Marine Insurance: If you transport expensive business contents overland, off the business premises, this coverage can insure them during transport. In many cases, it can insure expensive items — such as computer systems or fine materials. Your standard property insurance might apply when you transport items of lesser value.
- Bailee’s Customer Insurance: If a customer leaves their property in your care, then this coverage can insure damage to these items.
- Motor Truck Cargo Insurance: You might transport client belongings. This coverage can insure these items while they are in transport.
- Equipment Breakdown Insurance: Should essential business items — such as printers, computers or other machinery — suddenly break down, this coverage can help you cover the costs of repairs. Therefore, you can lessen the time these items are out of commission.
- Cyber Liability Insurance: Computer data is just as important as any physical asset. Should data get lost, or get stolen by cyber thieves, then businesses and their customers could lose out. Coverage can help you pay for data recovery and system repairs. It can also protect clients and the business in the event cybercrime leads to private data exposure.
Whatever your business, and wherever you work, you will need to insure your commercial property. Talk to one of our agents today. We can help you analyze your specialized risks and needs to make sure you get the right policy.
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