Property Insurance for Your Business
Basics of Property Coverage
If your business is your livelihood, it should be protected against an unthinkable setback. If self-insuring is not an option, it is wise to transfer the risk of loss to an insurance carrier. For instance, a frozen pipe could burst and damage important documents and valuable papers or a fire could destroy your building and the contents inside.
Types of Property Insurance Policies
A standard policy covers losses due to fire or lightning as well as extended perils such as floods, windstorms, hail, earthquakes, acts of terrorism, explosion, riots, smoke, civil commotions, aircraft and vehicles that damage your property. Coverage for vandalism and malicious mischief can also be included.
Are You Buying Enough?
Before purchasing coverage, take a complete inventory of all your business property to determine how much you need to insure. This important step assures you will have adequate coverage to continue your business in the event of a covered loss. A typical policy will provide the replacement cost value for your building and the actual cash value for your business property. Replacement cost value is the amount that is necessary to replace or rebuild your building or repair damages with similar materials, without considering depreciation. Actual cost value, on the other hand, is the value of your property when it is damaged or destroyed. This amount is typically determined by subtracting the depreciation from the replacement cost value. Most property insurance policies include a coinsurance clause, which requires you, the policyholder, to share the cost of covered services up to a moderate percentage of the actual cash value of the property. This will allow you to receive full coverage for your losses. Should you decide to purchase inadequate coverage for your property, you may be obligated to pay a percentage of all losses, even if they are listed in the policy. We understand that determining your business’s value is critical, so we’re here to help. Contact Arthur Grutt @ (212) 695 -7463 to learn more about our Property Insurance and loss control solutions to protect your business.
Types of Property you may Need to Insure
- Buildings and other structures (leased or owned)
- Furniture, equipment and supplies
- Money and securities
- Records of accounts receivable
- Leasehold Improvements and betterments you made to the rented premise
- Electronic data processing equipment (computers, etc.)
- Valued documents, books and papers
- Mobile property (construction equipment, etc.)
- Property in transit
- Satellite dishes
- Signs, fences and other outdoor property not directly attached to the building
- Intangible property (goodwill, trademarks, etc.)
- Business contingency for suppliers
- Ordinary payroll
- Extra expenses as a result of loss