Business Property Insurance

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Protect Your Business Against Minor & Major Loss

A business property insurance plan can protect your property from minor and major loss. Plans vary, but can include coverage for fire, water, storm and wind damages. Covered property can include the building in which the business is housed, signage, furniture, equipment, inventory, neighboring properties and more.

According to the Insurance Information Institute, www.iii.org:

Causes of Loss That Aren’t Covered

A number of events that can cause property loss are not covered by the basic BOP. Some, such as employee dishonesty or breakdown of a steam boiler, are excluded from the basic BOP, but you can add coverage to it by payment of an additional premium. Some events, such as wear and tear, aren’t covered because they don’t meet the basic criteria for insurance of being accidental and unpredictable. (Regular maintenance of property is your responsibility.) Coverage for other events, such as flood and earthquake, aren’t needed by all businesses. Separate policies are available. Nuclear reaction and war are considered to be uninsurable, since insurers cannot predict with any degree of accuracy the frequency of such events or amount of damage likely to occur.

The following are some of the other events that can cause damage that are usually excluded from the basic BOP: power failure (except when it causes loss or damage to computers and electronic data); failure of computer hardware or software; robbery and burglary; most instances of pollution; and changes in humidity or temperature. Also excluded is coverage for missing property where there is no physical evidence to show what happened to the property, such as with a shortage discovered after taking inventory.

Be sure you understand what causes of loss are and aren’t covered by your policy.

Property That Isn’t Covered

The basic BOP excludes some types of property from its coverage. For many of these items, such as money and securities or outdoor signs, insurance is available as an addition to the BOP for an additional premium. For items such as motor vehicles or boats, however, you will need to purchase a separate policy. Excluded property usually includes:

  • Any vehicles subject to motor vehicle registration, including aircraft, autos and trucks
  • Bullion, money or securities
  • Land, water, growing crops, lawns, trees, shrubs or plants
  • Outdoor fences and signs not attached to the building

Source: Insurance Information Institute, www.iii.org.

For more details, contact our office.

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