Running a business often requires owning a significant amount of property. Everything from the tools your team uses to do their work to your inventory represents an investment you’ve made to get the job done. If these items are ever damaged or destroyed, replacing them can be an expensive and time-consuming process. Business property (also called commercial property) insurance covers these items, so you know that you’re taken care of in case something happens.
Business property insurance covers your business assets from the risks of damage, destruction, or theft. Some of the major covered items include:
If any of these items were stolen or damaged/destroyed in a natural disaster or fire, business property insurance would pay you to replace them. The amount that the insurance policy pays can be paid in the form of new replacements, or an actual cash value (ACV) which pays replacement cost less depreciation (a lesser amount).
Business property insurance is a good investment for any company that owns a significant number of assets, maintains inventory, or would be unable to conduct business without certain tools or equipment. The cost of the insurance is quite small compared to the impact of a loss. A recent study by insurance company The Hartford found that the average small business property claim was $35,000 for fire, $26,000 for hail, and $8,000 for theft/burglary.
|Direct Damage Coverage
|Time Element Coverage
|Inland Marine Coverage
The cost of business property insurance will vary significantly based on the value of the assets a company needs to protect, along with the types of coverage chosen. Two major categories of business property insurance are Named Perils and Open Perils. Named Perils protect against a list of risks, while Open Perils offer broader coverage. When estimating your cost for this insurance a good rule of thumb is $1,000 – $3,000/year per million dollars of coverage.
Protecting your business property is important and the right insurance policy will give you peace of mind to focus on running your company. Our highly trained agents are here to help you select the right insurance and ensure that you get the best deal possible. We look forward to working with you.
What is the difference between Named Perils’ policies and Open Perils’ policies?
A Named-Perils policy will cover a specific list of risks that are outlined in the policy documents. Named perils are usually grouped into three categories: Basic, broad, and special, which covers everything unless it is specifically excluded. If you choose a Named-Perils’ policy, it is important to make sure that the risks you most commonly face are covered by the policy. An Open-Perils’ policy covers everything unless a risk has been explicitly excluded in the policy document. Determining whether Named Perils or Open Perils is right for your business is part of the insurance selection process and will impact the cost.
Is leased equipment covered?
Yes, policies can be written to cover leased equipment.
Is flood damage typically covered by business property insurance?
Most likely not, you’ll need to acquire flood insurance separately.
Is business property insurance tax-deductible?
Yes, insurance is a legitimate business expense and therefore tax-deductible.
Call us at 281-998-2500 for immediate assistance or get a quote online to find out how we can get you protected.