How do I decide on the types of property insurance that I need to buy?
One of the most important things to do besides taking inventory of all your business property is to take into consideration whether or not your policy would cover your excess stock in the event that you have more on hand than usual during peak seasons of business. One example of this is a tire store which has a large stock of tires both before and during the winter season than they have during the spring and summer months. It is important to make sure that you have adequate coverage during all periods of time. Most business policies are designed in such a manner that it is easy to add or subtract items in order to meet your changing needs. Always make sure to discuss changes with your insurance agent. Better to ask questions now before its too late.
Some of the common additional coverage's for business property include the following:
- Boiler and Machinery Insurance- covers equipment break down, boiler breakdown, machinery breakdown or breakdown in computer systems and/or telephones. Coverage usually provides reimbursement for property damage, related expenses (such as transportation), and business interruption losses.
- Builders Risk Coverage- this covers your building during the course of construction. While policies can vary greatly, the better ones usually pay the buildings full value at the time of loss.
- Building Ordinance Coverage- This provides coverage in the event that your township or city mandates certain rebuilding restrictions when there is damage to your building or structures. An example of such an ordinance is a city requiring the demolition of a building if it is damaged more than 50% of its total value.
- Business Interruption Insurance- this insurance covers loss of wages and earnings plus net profits that the business normally would have been able to produce if there was no loss or damage to the property.
- Commercial Crime Coverage's- this covers fixtures, money, securities and stock against burglary, robbery and theft both on and off of the insured premises from both employees and non-employees.
- Debris Removal Coverage- this insurance covers the cost of removing debris after there is damage from a covered peril such as fire before reconstruction of the damaged building can commence. This coverage must be added to the standard fire coverage.
- Fidelity Bonds- Covers owners of businesses in the event of a loss due to dishonest employees.
- Glass Coverage- this insurance provides coverage for glass breakage in places such as storefront windows and/or plate glass.
- Inland Marine Insurance- this insurance covers property that is damaged in transit from places
