The Importance of Property Insurance

Your livelihood is dependent on the survival of your business, so it’s critical that you protect it against any potential threat—big or small. For instance, a fire could destroy your business’s warehouse and the contents inside, or a burst frozen pipe could damage important documents and valuable papers. Worse, you could have trouble paying your employees during a loss because your funds are devoted to repairing one of these unexpected damages. All of these examples justify the importance of sufficient property insurance.  

If self-insuring is not an option to combat these risks of loss, look into obtaining property insurance. This coverage comes in many forms to suit your specific needs.  

Before purchasing coverage, take a complete inventory of all your business property to determine how much you need to insure. This important step ensures you will have adequate coverage to continue your business in the event of a covered loss.  

Types of Property You May Need to Insure 

Here are some examples of property that’s commonly insured: 

  • Buildings and other structures (leased or owned) 
  • Furniture, equipment and supplies 
  • Inventory 
  • Money and securities 
  • Records of accounts receivable 
  • Leasehold improvements and betterments you made to the rented premise 
  • Machinery/boiler  
  • Electronic data processing equipment (computers, etc.) 
  • Valued documents, books and papers 
  • Mobile property (construction equipment, etc.)
  • Property in transit 
  • Cargo 
  • Satellite dishes 
  • Signs, fences and other outdoor property not directly attached to the building 
  • Intangible property (goodwill, trademarks, etc.) 
  • Business contingency for suppliers 
  • Payroll 
  • Extra expenses as a result of loss  

Types of Property Insurance Policies 

Basic property insurance covers losses due to fire or lightning, and collapse including the cost of removing property as a way to protect it from further damage. You can learn more about Coterie Insurance’s additional endorsement coverage for business property here.   

You can purchase a Business Owners Policy (BOP) through Coterie Insurance to protect your business and the property owned for it. A BOP combines the General Liability (GL) and Property coverages into one single policy. Reach out to us if you’re unsure if a BOP is the right policy for your business – we’re happy to help you find the right coverage!  

Are You Buying Enough Property Insurance? 

One of the most important aspects of purchasing property insurance is making sure that you have purchased enough coverage to be adequately protected. A typical policy will provide the replacement cost value for your building and the actual cash value for your business property. Coterie Insurance’s BOP covers building and personal property at replacement cost.   

Replacement cost value is the amount that is necessary to replace or rebuild your building or repair damages with similar materials, without considering depreciation. Actual cash value, on the other hand, is the value of your property when it is damaged or destroyed less depreciation.  

Most property insurance policies include a coinsurance clause, which requires you, the policyholder, to share the cost of covered services up to a moderate percentage of the actual cash value of the property, which means you will receive reimbursement for the cost of your property minus depreciation. This will allow you to receive full coverage for your losses. If you decide to purchase inadequate coverage for your property, you may be obligated to pay a percentage of all losses, even if they are listed in the policy. 

Coterie Insurance understands that determining your business’s value is critical, so we’re here to help. Contact us or find an agent today to learn more about our property insurance and loss control solutions to protect your business.  

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