The property used to run your business—building(s), signs, furniture, computers, equipment, inventory and more—is a very large investment that can greatly benefit from insurance protection. In fact, commercial property insurance is so valuable that even though it’s not required by law, many landlords require you to purchase a policy before renting in their building.
It goes without saying that fires, theft, burst pipes, severe weather and more circumstances can cause great losses that could be hard to recoup from. But what’s the best way to protect your business’ property from possible catastrophe? When it comes to commercial property insurance, you’ll have two main choices.
- Peril-specific coverage: This policy only covers damages caused by events that are specifically mentioned. For instance, if your business is located in an area prone to tornadoes and windstorms, you may wish to purchase peril-specific coverage for tornado damage (which is cheaper than insuring against all damages). When filing a claim, you will have to prove that a peril named in your policy caused the damage.
- All-risk coverage: This policy covers a wider variety of damages, with the exception of the exclusions listed in your policy. With more covered circumstances, this type of policy offers more comprehensive coverage, including many unexpected events. When filing a claim, the insurance company is responsible for proving that the damages were not caused by exclusions before benefits can be distributed.
Your independent insurance agent can discuss these options with you in greater detail to help you make an informed decision that will help protect your business for years to come.