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Where Your Business Property Is & Isn’t Covered, According to Your Insurance

18. July 2016 08:36

cars driving on a busy street

Compared to all choices you had to make when starting your business, picking up Commercial Property Insurance probably seemed like an easy one. The premium is worth the peace of mind that your business's property is protected.

But how closely did you look at your policy? Property coverage typically ends at your office doors, and that could be a problem if you…

Let’s review where your business property is and isn’t covered and how to fill the gaps in your coverage.

Commercial Property Insurance May Not Cover Your Costliest Claims

Check out Insurance Journal's "Top 10 Small Business Property and Liability Claims" infographic. At a glance, you see that burglary and theft are at the top of the list in 2015, impacting 20 percent of business owners, followed by:

The good news? All these are claims Property Insurance can address.

But check out the list of the most costly claims. Vehicle accidents reach the number two spot, costing claimants $45,000 on average. Unfortunately, Property Insurance can't cover your business's cars. What's even more surprising: they probably aren't covered by your personal auto insurance policy, either.

The takeaway: Your Commercial Property Insurance may cover the most common risks to your business, but not one of the most expensive. For that, you may need Commercial Auto Insurance.

How Commercial Auto Insurance Covers Your Business Property

Commercial Auto Insurance works a lot like your personal auto insurance. It usually offers coverage for:

Even though the policies are similar, you usually can't add your commercial vehicles to your personal insurance. Most insurance providers see work-related driving as riskier, so they offer a different policy for it.

Pro tip: Hired & Non-Owned Auto Insurance offers liability protection for the cars you rent on business trips and your employees' cars that they drive on business errands. Learn more about this coverage in the article "Commercial Auto Insurance vs. Hired and Non-Owned Auto Insurance."

How Inland Marine Insurance Covers Your Business Property

Here's another issue: Commercial Property Insurance is usually tied to your business address, meaning it covers property while it's at your primary location. Now consider that Commercial Auto policies usually don't cover items in the vehicle.

So what happens when a…

In short, without Inland Marine Insurance, these professionals would have a significant coverage gap that leaves valuable gear vulnerable.

You can add Inland Marine Insurance to your Commercial Property policy to cover property in transit and…

For a deeper dive, read "What is Inland Marine Insurance?"

The big takeaway: When it comes to insurance, the details matter. Look over your Commercial Property Insurance policy and discuss your business practices with your agent.

Tags:

Commercial Auto Insurance | Inland Marine Insurance | Insurance Terms Explained | Property Insurance | Small Business | Small Business Risk Management | Tips for All Small Businesses

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