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Business owners should buy business property insurance

Business owners are wise to include business property insurance in any business insurance policy. As with most insurance coverages, a business owner needs to ensure there are no gaps in coverage, and property insurance is an important component to ensure complete protection of the business. The following expert advice will help the business owner in obtaining the right property insurance.


Do include all property owned by the business

As a business owner, you own more than furniture and computers. You have supplies and inventory that need to be included. In the event of a total loss, what would you need to replace and want to be covered by your insurance policy?

Do consider a higher deductible to save on premium

Quite simply, the higher the deductible, the lower the premium. Ask for multiple quotes with different deductibles to determine the savings versus how high a deductible you can afford. Just remember, in the event of a loss, you pay the full deductible before the insurance company pays.

Do have a policy to match replacement cost

Many times people don’t think to include some items that have depreciated down to little or no value, or simply record the initial purchase cost of the item. In the event of a loss, you will still need to replace all of your property, not just those that have a higher value. Keep in mind that some prices change, and replacing an item you purchased for $75 a year ago, might cost you $130 to replace it today, or is irreplaceable with the same item, and you must go with the comparable version with a higher price tag.

Do consult an independent insurance agent

Independent agents will shop your insurance with multiple carriers. This will ensure that you get the proper coverage at the best rate and is the best way to provide the proper business insurance. Independent agents have many options and can find the right company to fit your business.

Do be completely honest

Being dishonest with your agent, or leaving out information can at the very least result in an unpaid claim. In more extreme cases, it can be considered insurance fraud.


Do not think that all policies are the same

There are different types of policies, such as a Businessowners Policy or Commercial Package Policy. When obtaining a quote to move your coverage, it is a good idea to provide your new agent with a copy of your existing policy. This ensures that you are getting an apples-to-apples quote, and that you are not dropping coverage when moving your policy.

Do not assume that you have coverage for any scenario

Make sure that you understand for which situations you are covered. All policies have either a list of included or excluded situations.

Do not assume that only portable items are covered

Business personal property can also include tenants’ improvements and betterments coverage. These are improvements made to a location not covered by the landlord. Depending on the policy form, this can be covered in either the Building Personal Property or Building coverage.

Do not be afraid to ask questions

Your independent agent knows that you are an expert in what you do, but not in insurance. That is why you have chosen to work with an agent. Select an agent that will sit down with you over the phone or in person and explain your coverages and answer all your questions.

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It’s very important to ensure that you have a high enough limit to properly cover you for all of your business’ property. Make sure that you include all of your property and the cost to replace them. An independent agent can help determine the proper coverage and find the best rate for the coverage needed.

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David SiekmanSales and Marketing Manager

David has been in the insurance industry for almost 15 years. David has spent the last 7 years at Encharter Insurance doing everything from operations to service, sales, and marketing for both personal and commercial lines. Encharter Insurance...

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