What You Should Know About Property Insurance
Property insurance is the coverage when damage, loss or theft occurs to a company’s building and the contents of it—account records, money, inventory, securities, machinery, furniture and supplies. It can also include intangible assets like trademarks.
There are insurance companies who offer property insurance that covers peril. Peril is a disaster or an unexpected event such as fire and theft. Other insurance companies offer policies that are able to cover multiple perils. Coverage for basic peril policies includes losses that are caused by fire and theft; business owners are given an option to purchase additional types of coverage if they need it. For example, a business located in the Midwest or the East Coast may purchase coverage for snow, ice damage. Business located at the West should consider purchasing an earthquake-insurance policy.
Businesses that have previous claims and no control in their company are asked to pay higher premiums while companies with no previous claims and have good company procedures are asked to pay the standard premiums. To lower the cost of property insurance, consider hiring security staff that can prevent shoplifting, install sprinkler systems to control fire or use an alarm to prevent theft.
A Business Owner’s Policy or BOP combines property and liability insurance into a single insurance policy. Businesses can purchase their property insurance from a Business – Owner’s policy. The amount of coverage in a Business Owner Policy is lesser than the standard property insurance policy. For companies who need more coverage, they usually purchase a separate policy.
Two types of additional coverage for property insurance policy are business-interruption insurance and the other is extra-expense insurance. These policies are included in Business Owner’s Policy and they are included to protect businesses after a loss has occurred.
Business-interruption insurance covers expenses like salaries, taxes, debts and loss of profit due to interruptions. Extra-expense insurance covers businesses that are temporarily relocating due to a disaster that has occurred. An example would be a clothing store was burnt to ashes by fire, if the business is covered by extra – expense, this policy will be enough to cover business expenses such as buying equipment or leasing equipment, getting new merchandise and informing customers about the changes that have happened. An extra – expense policy enables business to continue their operations after a disaster has occurred.
Everyone wants their property to be protected; they do it by using alarm systems and other devices that can avoid possible danger. However, even the best security system won’t be able to protect your house. Example, if an earthquake, fire or other disaster hits your home, an alarm can’t stop these natural disasters. If a professional thief stole your jewelries or other valuable things, an alarm won’t be able to stop a thief from running. There are times when thieves get caught, but you won’t be able to get the same value you could’ve made from those valuables. There are a lot of possible situations that we can’t predict and solve. But if a person purchases property insurance, they feel confident that if something happens to the property or even the business, they will be covered by the policy and will be compensated for the damages.