Why Do You Need Commercial Property Insurance for Your Business?

It’s important to protect your business with a commercial property insurance policy. Having this coverage shields you from the loss of your business assets and properties in the event of hazards like fire, natural calamity, and theft. Whether you run a home-based office, operate in rented commercial space, or own the premises yourself, business property insurance can be your safety net if a covered event occurs.

Here are 4 key business protections you can get from commercial property coverage:

1. Your premises: This coverage can protect your business buildings, even in multiple locations. If a fire or natural disaster destroyed your physical premises, this policy would pay for its reconstruction or repair. However, if you’re a tenant, your landlord’s insurance cover protects your rented physical space.
2. Office equipment, furniture, and tools: A commercial property policy can cover your computers, work tools, and other equipment against damage or theft. If you have a home office, you may need this policy to cover certain contents or business operations that your homeowners insurance doesn’t protect.
3. Inventory: If a thief breaks into your business and steals your inventory stock, this cover may replace it. It also covers inventory damage by fire.
4. Business interruptions: Your income/profit is a critical business asset that can be protected by this cover. If a covered event prevents you from opening your business, the policy can replace the income you lose as a result. However, you may need additional coverage for this benefit.

With additional commercial property insurance coverage, you may also recover the following after loss or damage:

• Business assets, such as laptops, stolen off-premises
• Your staff’s personal belongings that were lost or damaged in your office
• Assets damaged in burglary or vandalism

Tips to Maximize Your Commercial Property Insurance Benefits

Having the proper amount of insurance is critical to the full protection of your business assets, especially with a replacement cost policy. Be sure to look for ways to keep your premiums down in the long run.

Here are some tips to get the most out of your business property coverage:

• Documentation: It’s essential to maintain accurate inventory records and let your agent know whenever there’s a change in stock volumes. If you replace anything after damage or loss, be sure to preserve your proof, such as receipts. You’ll want to securely back up all key documents, including your policy paperwork, in a different location.
• Fire inspections: Consider enlisting a licensed fire inspector to carry out a fire safety assessment. If you need to upgrade your building’s fire prevention systems to get a positive inspection report, then do it. You may qualify for lower insurance premiums after implementing measures to lower the risk of fire breakouts on your premises.
• Policy limits: If you have a replacement policy, regularly keep in touch with your insurance agent about any increases in your policy’s limit. A policy update may be necessary, at least once a year, to keep up with the rising cost of rebuilding your property.
• Optional coverage: Extra protection for items like valuable records or temporary storage will impact your insurance premiums, too. You can discuss this issue with your agent and find an efficient way to cover your business assets fully.
• Deductibles: You can save on insurance premiums by carrying a higher deductible, meaning your insurer will cover less risk. However, keep in mind that your deductible for the repair or replacement cost is your responsibility should a covered disaster occur.

These are the main reasons to get business property insurance for your company. Get started on your tailored commercial insurance coverage by contacting the expert insurance agency in Fresno, McCarty Insurance. We provide reliable business insurance to suit all of your company’s needs so that you can feel rest assured your investment is protected.