Which Type of Property Insurance Should You Get for Your Business?

Property insurance can be crucial to your business’s success, so it’s important to choose the right kind of policy. There are four basic types of property insurance available, but only one will cover the specific types of damages your business is at risk for, as well as all of your other needs when it comes to insuring your property and business equipment. Read on to learn more about each type of policy and how they can help protect your business.

The Need for Property Insurance

Most business property owners have an idea that they need to invest in property insurance coverage, but they don’t know which policy is right for them. The type of coverage you need depends on your unique business operations. There are two types: commercial general liability (CGL) and commercial property insurance. CGL covers liability claims and other damages, while property insurance covers damaged or destroyed business assets.


Types of Commercial Property Insurance

Commercial property insurance comes in many forms and is often divided into two categories: liability insurance, which covers your legal obligation to others, and physical damage insurance, which covers physical damage to your property. While liability coverage may be required by law—and physical damage coverage is recommended—you might only need one or both types of commercial property insurance depending on your business model. The following are three common types of commercial property insurance policies

Business Owners Policy (BOP)

Covers all forms of property, including vehicles and equipment, inside and outside your place of business. If you have employees, medical coverage may be added to provide healthcare protection. A BOP also includes liability coverage to protect you if someone gets hurt while on your property or in your company vehicle. In addition, personal possessions are covered if they are stolen from an unattended vehicle or if a fire erupts in a car owned by your business.

Specialty Coverages

There are three main categories under which your business property can be covered: general liability, property and casualty (P&C), and extra coverages. These can include things like rent replacement, loss of income, extra living expenses, or even vandalism and malicious mischief. The specifics will vary from one policy to another but you need to know what your options are so that you can make an informed decision about which is best for your company.

How to Save Money on Business Property Insurance

In order to save money on your business property insurance policy, you need to understand which type of coverage you’re purchasing and what it’s protecting. If you don’t make sure your coverage is tailored specifically to your small business and its specific needs, you might not have adequate protection if something goes wrong. What kinds of coverage do small businesses typically get, anyway?

The Best Place to Buy BOPs is from a Local Agent

A business owner can purchase insurance policies directly from companies, but it’s a good idea to talk with an agent who has a wealth of industry knowledge. A good local agent knows many different companies and their products—and can help you find an affordable policy that gives you adequate coverage. In addition, some insurance plans are not available to be purchased online and must be purchased through an agent. Bottom line: when looking for property insurance, make sure to go with a local professional who specializes in helping business owners get covered.



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