Also called commercial property insurance, many companies require insurance at the location of their business. Business property insurance in Salt Lake City can protect the assets of a business if a claim should be made. Even small business owners can benefit from having this coverage.
What Business Property Insurance Covers
The right kind of insurance will cover all buildings on your property if they should be damaged and need repairs or replacement. In addition, the policy will pay for replacing the contents inside the buildings, which includes the following:
Having this coverage could reduce the amount of loss a business sustains in the event of a fire or other situation that causes damage. With a large disaster, a business could be ruined without the right amount of coverage.
Protecting Your Business
While many people focus on the physical items that are protected in a business property insurance policy, this coverage does a lot more. It protects the business from claims that result from injuries on the property. If a customer should fall and suffer injuries, the insurance company will pay the costs, including a lawsuit up to the amount of coverage limits.
A business that deals with customers on-site needs to have this coverage. However, you need to carry liability insurance even if you do not have customers come to your location. You may have vendors or even those who just walk by your property that could get hurt on your property.
Another way that commercial property insurance protects a business is through Business Interruption coverage. If your business is unable to function due to many different factors, you can be repaid for lost income. For example, a landlord has a fire in one of his rental properties that damages several units. The insurance policy will pay him for the rental income he is losing until the property is repaired and the units are inhabitable again.
This coverage can make a big difference in a business’ ability to pay vendors and continue to function during the disaster.
Types of Policies
Business insurance comes in different types of policies. The basic policy will cover events such as fire, wind and lightning damage. Companies can extend their coverage to include other issues, such as water damage, ice and snow damage and even malfunctions of sprinkler systems. A third type of policy includes other situations that are normally excluded, such as insect infestation and even normal wear and tear.
When selecting a policy, you want to make sure you get the right amount of coverage for your needs. Take the time to re-evaluate your business at least once a year to make sure you have adequate coverage. As your business expands and grows, you will need to update your policy to ensure that you have the coverage needed for an unfortunate event.
