Property Insurance for Small Business Owners: Deciding if You Need It

When you have limited but valuable assets in your company, you have to ensure that they are protected from the potentially negative consequences of unforeseen circumstances. What better way to do so than to have your commercial property insured? In an article for About.com, business journalist Tiare Rath describes how property insurance can be beneficial, especially for small businesses:

“Business property insurance is a must to protect your company’s assets. While business property insurance isn’t required by law, it’s a wise investment to limit your liability in the event of a natural disaster or other calamity. Without it, your business may not survive financially.

Business property insurance plans can be either basic form policies, which provide coverage for damages caused by such events as fires and storms, or special form coverage, which offers broader coverage. Special form coverage protects all property with certain exceptions, such as terrorist acts and floods.”

As an optional yet important insurance for small business owners, a policy covering your commercial property can be incorporated into your risk management strategies. After all, you never know when disasters or natural calamities will strike and possibly spur the bankruptcy of your company. If you have property insurance in place, you can receive benefits that will save your business and keep it going.

Generally, property insurance policies cover damaged or completely destroyed physical assets. It could be your building that needs remodeling after a fire, or your inventory and machines that require replacement due to flooding. IT industries and other offices that rely on computers or machines can especially benefit from technology insurance policies that would protect the tools used for business.

Some policies can also cover office furnishings like furniture and light fixtures. Additional provisions of this insurance may include coverage for the properties you lose to theft, fraud, or vandalism.

Special forms of property insurance can cover your financial assets. Depending on the terms and limits of your policy, your insurance company can replace your income, operational costs, and other expenses. This would be particularly useful when you are recovering from the impact of a natural disaster.

Now, the question is, do you need property insurance? If you operate a business in an area prone to calamities, then yes, definitely get a policy right away. However, if you don’t know what package suits your specific needs, it would be advisable to consult reliable agents like InsureYourCompany.com so that you can make an informed decision.

(Source: Do Your Homework Before Choosing Business Property Insurance, About.com)