While business property insurance is not legally
mandatory, under no circumstances should
a business be uninsured for its
property, equipment, and inventory, as
well as against its potential
liabilities, in this litigious society.
What is it?
Property insurance protects your
business against physical damage to, or
loss of, your assets. Assets, broadly
defined, include the area in which your
business operates and the property
housed there. In the case of
catastrophes like fire, explosion,
theft, or vandalism, property insurance
helps cover your costs - whether it's to
repair damaged property or replace what
you've lost.
Property to Insure:
This list can serve as a general
guideline when thinking about what type
of property to insure:
-
Buildings and other structures, leased or
owned
-
Furniture, equipment, and supplies
-
Leased equipment
-
Inventory
-
Money and securities
-
Records of accounts receivable
-
Improvements and betterments you made to the
premises
-
Machinery
-
Boilers
-
Data processing equipment and media,
including computers
-
Valuable papers, books, and documents
-
Mobile property, such as automobiles, trucks,
and construction equipment
-
Satellite dishes
-
Signs, fences, and other outdoor property not
attached to a building
-
Intangible property (goodwill, trademarks,
etc.)
You should take a complete inventory of all your business
property, determine its value, and
decide what's worth insuring.
Exclusions
Be sure to carefully read over any
policy and make a special note of any
exclusions, such as flood damage for
example. Depending on your individual
business and its location, you might
want to purchase coverage for these
exclusions.
