Property Insurance: The "Bricks And Mortar" Of Any Business
Insurance
Property insurance (for small businesses as well as large ones) protects
business property and inventory (assets) against physical loss or damage
by theft, accident or other means - even if that property is removed from
your place of business when it is lost or damaged. Property coverage for
small business insurance can cover your costs to repair or replace what
you've lost and, in some cases, compensate you for items that are physically
irreplaceable. Because every business is vulnerable to property damage
or loss at any time, this insurance is one of the first things you should
buy when you start a business.
Property Insurance Overview
Property coverage in small business insurance can be structured several
ways, and the premiums you pay are based on how comprehensive your business
insurance coverage is.
If you don't own your building, you'll simply need contents coverage. In
the most basic policies, property insurance for small business contents
covers furniture, fixtures, inventory, office equipment and other supplies
stored at your facility or off-premises. You may insure those items for
replacement cost (which means you'll receive a settlement based on how
much it will cost to replace the items at today's market prices) or for
actual cash value (ACV), which pays only for the depreciated value of the
property. While replacement cost small business insurance policies have
higher premiums, they may help your business recover from a loss faster,
since you can replace all of the lost or damaged property with new items.
For this reason, most insurance professionals will recommend buying property
coverage insurance for small businesses on a replacement value basis.
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