Commercial Property Insurance Protects Company Assets

Just as with a family home, a business typically has a great deal of its wealth invested in its property and capital assets, including buildings, equipment, land and other assets. The right kind of insurance coverage is needed to ensure a business can continue if critical assets are damaged or lost and there were no way to replace them in a timely manner to maintain a profitable business pace.

But a good commercial insurance plan can help protect and replace assets when something bad happens and they no longer are capable of working at sufficient levels or even at all. There are two basic types of commercial property insurance from which businesses and other commercial enterprises with valuable assets can choose to protect their investments. An all risk policy can protect against a wide range of potential perils and only names excluded coverages in most cases. But a peril-specific plan will protect only against those perils listed on the insurance contract, which can help keep the cost of insuring against a specific threat more affordable, such as the possibility of external flooding if located in a federally designated flood zone.

Among types of perils that can be specified to help protect business assets are fire, flood, crime and business interruption insurance. Business interruption insurance helps replace the cost of lost revenue due to a lapse in business in the event of a covered peril, such as a flood or fire, temporarily crippling business practices and causing a great financial loss. When business interruption insurance is in place, then a business owner can keep his or her workers employed even while idle and know the business will not go bankrupt due to the tragedy.

While specific perils can be insured against, broad coverage insurance plans also are available to protect against a wide range of potential mishaps that could damage or destroy costly assets and put a commercial enterprise in bankruptcy. A good business insurance plan will protect various assets, such as gear that is owned or leased, such as medical equipment, furnishings, appliances, fixtures and medical equipment. Protection also can be had for accounting records, including receivables, electronic media and computers. And with lost income coverage, more than just business property is protected, the entire business and its revenue are protected against potential loss.

Because each commercial enterprise is unique and has its own unique set of risks, commercial insurance plans for businesses can be tailored to their special needs. A combination of broad risks, specified risks and other types of coverages can ensure a job provider can keep workers employed and generating a profit even while shut down due to a long list of potential perils, including earthquakes, floods, fire, hurricanes, tornadoes and others.

A good insurance firm will have the right advisors available to help determine which types of coverage a particular business might need to protect its assets and ensure it keeps moving forward despite suffering a major mishap and setback. By Mike Heuer