What's Property Insurance?

Building a small business from the ground up and watching it mature is not easy. It's an often long and difficult process that takes plenty of dedication and faith to pull off. Without Property Insurance to help protect all your hard work and investment, though, all of it could be lost in the unfortunate event of a break-in, breakdown or other problem that causes damage or loss to your business property.

Property Insurance is designed to insure your business' physical property, including equipment and buildings, against damage or loss. This means that in the event of a fire, flood, theft, or similar situation, you can get your property replaced quickly, and without affecting your own bottom line. What you invest in your Property Insurance can help your business get back on its feet when you need it.

Are There Other Types of Property Insurance Available?

In addition to those types of business property covered by a typical Property Insurance policy, your policy could include a few other types of Property coverage:

  • Inventory protection - Stock that can't be sold because of damage or loss may be covered, depending on your policy.
  • Data protection - You put a lot of time and effort into compiling your business data and keeping it organized. Some business insurance policies will cover this in the event of an equipment malfunction or computer crash.
  • Intangible protection - For some businesses, your intellectual property is equally as important as your physical property. Certain types of coverage will include trademarked, copyrighted or patented property.

These are just a few of the areas that may already be included in some Property Insurance policies, or that you may be able to add on to a basic policy if your business' unique risks call for it.

What Determines Your Property Insurance Premiums

How much you'll pay for this type of insurance will depend on a number of factors. Here are a few questions your insurance agent may ask:

  • Do you own your physical space or rent it? If you don't own the building you use for your business, you can (and should!) still insure the property you have inside.
  • How much are your assets worth? Obviously, the more assets you have and the more they are worth, the more coverage you'll need.
  • Do you run your business out of home? Be aware that Homeowners' Insurance probably won't cover your business property even if you run it out of home.

Many small-business owners can save money on Property Insurance by combining it with General Liability coverage into a Business Owners' Policy. Talk to an agent to see if you qualify for this type of coverage and if it fits your company's needs.

Speaking with a dedicated insurance agent can get you free quotes to compare rates and coverage, and help you determine which risks are greatest for your business. Your agent can help you figure out how to get your business properly protected, while staying within your company's budget. What you invest in your Property Insurance before it's too late could make all the difference later.