When running a company nowadays, even a seemingly minor mishap can spell doom for your entire venture. While you might take steps to mitigate the chances of the occurrence of some issues, the truth is that you will not completely negate them. It therefore becomes vital to take other steps to reduce the impact of the unexpected on your business, should these events occur. Typically this is done by taking out insurance.
In the quest to minimize business expenses, most companies only opt to invest in the legally-mandated insurance coverage. These include workers’ insurance, and, for companies that maintain fleets of automobiles, auto insurance for Charlotte NC-based companies. These are undoubtedly essential and will save you millions in claims and accidents, but they are not enough. Here are the types of property insurance coverage that will also make a significant difference in your business.
Direct Damage Property Insurance
This is what most proprietors envision when they hear of business property insurance. It covers the damage or loss to the insured physical property. This does not mean that catastrophic events will be automatically covered when you purchase direct damage property insurance, since providers offer coverage against specific events. You will, in most cases, need a separate policy to pay for the debris removal and cleanup after a natural disaster even if your insurance covers the replacement or rebuilding of the property.
The direct damage property insurance is also essential for home-based businesses since your homeowners’ insurance does not cover damage to your business property.
Inland Marine Insurance
Most commercial insurance coverage is designed to cover business premises and the equipment found in them. On the other have, there is little to no coverage meant for property located in off-site locations. Inland marine insurance coverage is designed for machinery and other business property that will be transported over land. It is particularly useful for contractors with machinery and equipment they will move from one job site to another. At times, inland marine insurance can be added to your existing package or commercial property policy via an endorsement.
Builders Risk Insurance
Most commercial property coverage is meant for completed buildings. It is prudent to invest in builders risk insurance for buildings that are under construction. This is considered a form of inland marine insurance. Unlike the latter, however, it is often purchased separately rather than as an endorsement on another policy. Builders risk insurance is purchased by contractors and building owners to cover physical damage resulting from specified perils.
While most business insurance will include theft as one of the perils they cover, most will exclude employee theft or damage, and loss of securities and money. It is prudent to purchase a crime insurance policy to protect yourself against the excluded losses. Crime coverage is often written separately but can also be added into your existing policy. With the rise of employee fraud and theft, you cannot afford to overlook this form of business property insurance.
You need to go beyond the legally mandated forms of business insurance to ensure you remain in operation. Many a business has closed shop owing to losses from the perils covered in the above insurance policies. You should not allow your company to become part of these grim statistics.