If you own a business and want to prosper it securely, you can’t go without a reliable insurance coverage. But before obtaining a certain package it is necessary to learn what is business property insurance. This insurance type is designed to help the insureds recover their business assets or the business estate once they are jeopardized by natural disasters or vandalism. Windstorms and hurricanes are quite frequent in the States, whilst the statistics of burglary, as well as vandalism against properties, show high rates. Therefore, protecting your business – the source of your income is a top priority.
What Coverage You Get With Business Insurance
By purchasing a business property insurance plan, you will have the chance to repair or even replace such items besides the building itself (you may not need this point if you are renting your business area), as are the followings:
Certain providers also offer protection for the business items even when they are outside the business territory. Yet, there are also certain limits existing for certain events including an acquisition, a merger or a great workforce reduction.
However, when we have a closer look at what is business property insurance we shall find out that there are certain policies, which also include Business Interruption Insurance. The latter is a highly efficient policy that will cover up to one year of lost income in case you were obliged to put the business on hold. This can happen if, for instance, the fire destroyed your workplace. Your insurance coverage will pay the costs that you would get if the business was operating. This way the insurance company will help you keep your business afloat till it can again generate revenue.
Costs of Business Insurance
Once you understand what is business property insurance you will probably be interested in the costs. This insurance type is doubtless not an inexpensive one. It can cost a business owner quite a large sum of money especially when the business property is a large one equipped with plentiful expensive stuff. Nevertheless, there are a couple of options that can significantly reduce the costs of your business insurance plan.
1. BOP (Business Owner’s Policy)
This option is designed for small businesses which are of low risk. It combines the General Liability and Business Property Insurance into a single package with a reduced rate. This is an essential aspect in the information of what is business property insurance.
2. Open Perils Coverage
An open perils coverage plan covers all incidents except for those specially excluded by the policy. This coverage too is designed for relatively smaller businesses and will cover the most typical perils including fire, storms, thefts, smoke or vandalism. Particularly these perils threaten most businesses.
3. Named Perils Coverage
This coverage too provides protection against the perils listed in the policy. You choose the most hazardous perils and get coverage against them. If your business, for instance, is situated in an area with a high risk of earthquake, you can purchase this coverage type and pay less for it.
So, now you have probably got the answer to your question what is business property insurance and can choose the right plan.