Commercial or Business Property Insurance is necessary to protect the assets from damage, theft or accident. Whether the property is owned or leased, the contents must be protected. All of the business’ contents from office furniture, computer networking items and other valuables should be adequately covered.
There are different policy coverage, similar to homeowners policies, for Replacement Cost and Actual Cash Value (see Replacement Costs vs. Actual Cash Value). It is important to take an inventory of the business’ contents, as well as think carefully about what you would do in the event of a disaster before settling on any one commercial/business property coverage.
As with most insurance policies, additional coverage is available for purchase. Business Interruption insurance is one example. In the event a disaster- such as fire, hail, windstorm, vandalism or equipment damage – temporarily halts your business from operating, business interruption insurance will allow you to continue paying the bills, rent or mortgage and employee salaries.
• Damage to the actual physical property of the business
• The damage must be sustained by perils named in the insurance policy
• The damage must directly affect the business’ ability to conduct its’ normal work activity.
Business Interruption Insurance enables you to restore the day-to-day business operations as quickly as possible.