Any time you own a business, you will have items that are owned by it. This can mean property, office equipment, computers, furniture, or any other type of possession. This type of property requires a commercial property insurance policy. It will also cover any inventory or landscaping materials you may have on hand. It's necessary to have this type of insurance to cover all of your assets and protect your investment.
Commercial property insurance is not meant to cover damages to other peoples' property. Instead, damage that happens to a client or customer's property will need to be filed against your company's general liability policy. While the general liability and commercial property policies can be bundled together, once they are combined, they will normally include other types of insurance as well. This is referred to as a BOP or business owner's policy.
If your business rents or borrows different types of equipment or property, you will need to purchase a special policy or endorsement to cover them while they are in your possession. In most cases, the company you rented them from will offer you additional coverage options to ensure that their property is sufficiently covered when it is absent from their property. It's still a good idea to have your endorsement to protect your financial interests.
A commercial property insurance policy will cover the personal possessions of a business owner if they are left at the property overnight or if they are used while the business owner conducts business. This can be electronics, clothing, or other items the person regularly. This type of policy will only cover damages by common perils like fire, wind, lightning, theft, explosions, and vandalism.
Commercial property insurance is there to protect you if your business is the target of vandals or if customers steal from you. It will compensate you for the broken locks and any damage that results from the break-in. If you find an employee stealing from you, your commercial property insurance may not be the answer. Any time a crime that involves an employee occurs, like theft, fraud, or embezzlement, you will need to have a crime insurance policy in place.
You don't need to list your personal possessions in your commercial property policy like you do your assets. You will, however, need to know the estimated value of what you keep at your business. You will need to know the coverage limits of your policy and how to file your claim.
It's important to know what your commercial property insurance covers and what it doesn't. Contact the agents at Humble Insurance Group. Our agents can explain the limits of your commercial policy and also explain the benefits of bundling all of your commercial policies into a comprehensive business owners policy.