Understanding Property Damage Insurance

4/16/2021 (Permalink)

Business owners in Lee's Summit, MO, have a lot on their plates. From dealing with day-to-day operations, personnel, and much more. They need a sense of security and peace of mind for when the unimaginable disaster strikes. Luckily, when it comes to protecting a business from the unthinkable, investing in commercial insurance can make recuperating easier.

What Does Commercial Property Insurance Cover?

At the basic level, this type of coverage helps a business deal with circumstances from events such as fire damage, explosion, vandalism, theft, and pipe bursts. Typically, natural disasters like earthquakes and floods, as well as interruption loss, will require an additional layer of coverage. Other items often not covered include:

• Internal theft
• Vehicle damage or loss
• Stolen cash or currency
• Environmental damage
• Equipment failures
• Defective products
  
  

When personalizing coverage, it is important to take an inventory of the vital elements inside and outside of the business. This inventory check is conducted to ensure full coverage of losses that may halt a business's production in an unforeseen circumstance. The following should be assessed:

• Business structure, including leased or owned space.
• Office equipment and supplies, including computers, furniture, phones, and copiers.
• Vital documentation records, such as accounting or client data
• Inventory on-site
• Landscaping, fencing, and outdoor furniture
• Business signs, satellite dishes, security systems, and other outdoor equipment
  
  

Coverage Options

Once you have an inventory of everything that needs to be covered, you can work with an agent to determine the type of commercial insurance coverage that your specific business requires. Most plans reimburse loss based on the cost of replacement or the cash value of an item. It will also include costs of associated restoration services, depending on the situation. A replacement cost takes into consideration the repairs needed to rebuild without depreciation while a cash value payout provides funds to replace with a comparable item, including depreciation.
No matter the size of a business, commercial insurance is necessary to be prepared for the unthinkable. Although it is an added cost to the business owners, it is necessary for if a disaster did strike, as an added layer of protection for your business.