Business property insurance protects your business in the event of a loss caused by circumstances outside of your control. Without it, you the business owner are financially responsible for repairing any damages to your commercial property on your own — regardless of the cause.
What Does Business Property Insurance Cover?
Business property insurance covers damages to commercial property that occur due to theft, fire, burst water pipes, natural disasters, and other accidents. The cost of property insurance varies significantly depending on the size and nature of your business, but in general, most business owners pay between $1,000 and $3,000 per $1 million of annual coverage.
A standard property insurance policy includes coverage for a variety of assets, including:
- Professional equipment
- Product inventory
- Furniture, decor and fixtures
- Outdoor signage
- Fencing and landscaping
- The building/space your business occupies
Most insurance providers also allow you to add business interruption coverage to your property insurance policy. This add-on allows you to recoup money your business loses as the result of a temporarily closure.
For example, if your business closes due to fire damage, you’d be able to acquire funds to cover payroll, building rent, utility bills and even lost income from your insurance provider.
Should I Get Business Property Insurance?
If you own or rent a physical office space, it’s probably a good idea to invest in a business property insurance policy. The expense of replacing your commercial property in the event of a disaster simply isn’t worth the risk.
Looking at it from that perspective, paying a monthly premium for a reliable property insurance policy is well-worth it to protect your company’s future.