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Business Property Insurance: A 101 Guide to Learn More

Business property insurance is an insurance policy that can protect your company’s physical assets from unexpected events, including fires, windstorms, theft, and vandalism. Choosing the right insurance provider for your business doesn’t have to be a struggle. Below, the insurance professionals at Unity Insurance discuss the basics of business property insurance and everything you need to know before purchasing a policy. 

What Is Business Property Insurance?

In addition to covering the physical building or structure in which your business resides, business property insurance also covers personal property. This includes your office furnishings, computers, inventory, and even medical equipment. Additional coverage could include equipment breakdown, removing debris after a natural disaster or weather event, water damage, and other losses.

Purchasing Business Property Insurance

When purchasing business property insurance, it is important to keep in mind your specific business needs before determining exactly how much coverage you will need. Proper coverage limits can help protect your business in case of unexpected accidents or tragedies. Based somewhere with frequent natural disasters, such as hurricanes, windstorms, or wildfires? You may need more coverage than a business based in a more temperate climate. What will you do to cover the loss of income if you’re out of business due to a claim? If you have a home-based business, you should still consider purchasing property coverage for your business as a standard homeowners’ policy does not include coverage for business property. The experts at Unity provide guidance and support to ensure you make the right decisions regarding the coverage that fits your exact needs. 

Replacement Value vs. Actual Value

There are two main types of coverage when it comes to business property insurance policies: replacement value and actual value. While actual cash value covers property damaged at the moment of the accident, or the actual cash value,  replacement value covers replacing whatever was damaged. 

For instance, if you own a medical office, a policy that reimburses for actual value will pay out for what all of the items in your office were valued at the time of the loss. This can be significantly less than the cost of replacing used items like high-value medical equipment and machinery. Meanwhile, a policy that covers replacement value would pay out for what the items in your office actually cost to replace, whether new or used.

Loss of Business Income

When deciding how much coverage you need, it is easy to remember to account for replacing your physical building, business goods, and other inventory. However, many people forget to include coverage for the loss of business income. What will you do if your business is closed for an extended period of time? Will you be able to pay your employees or other regular expenses if you are unable to bring in revenue? A policy that includes coverage for business income can help cover your lost income and expenses during this time.

Speak With An Agent At Unity Insurance About Business Property Insurance

Unity Insurance understands the challenges of deciding which business property insurance policy is the right choice for your needs. We work with our clients to provide the best plan to match your business needs. Call 410-539-6642 to learn how Unity Insurance’s experienced insurance agents can assist you.