Protecting your property is a big step in securing your business. Threats happen at all locations, no matter the industry. Having adequate financial protection minimizes the potential financial loss your company will experience. Commercial property insurance should cover more than your business structure. It should also cover all aspects of your building property including outbuildings. How can you maximize your coverage's effectiveness?
What Structures Do You Own?
Your commercial property insurance should mention any structure present on your property. This includes the main structure. It should also include any secondary structures. This includes garages, workspaces, shops, workstations, and outbuildings. A comprehensive plan for all structures helps minimize financial loss.
To determine what coverage you need, your insurance agent should visit your property. They should then determine which structures are on site. Walking around the property helps to allow for proper coverage. Even smaller areas where equipment storage occurs need protection. Keep in mind proper coverage should list the name of the structure specifically. This helps ensure there is no risk of confusion later.
What Are the Risks There?
At each location or building, your policy should address what is specifically present. It is important for the policy to cover all types of risks. This should include concerns about:
- Any type of equipment stored within the building and risks of theft and damage
- Any type of inventory stored within
- The type of work done in this space (should liability insurance extend here)
- The level of security present at the site
- The value of the structure if lost to a significant peril such as a fire
With the help of your insurance agent, you can learn more about the structures requiring coverage. Again, your policy should name any structure on the property. This ensures it is a part of the policy. If you add to any building, make changes to the property, or add a new building, update your insurance.
What Happens if Your Agent Does Not Know?
Accuracy is critical with commercial property insurance. If you build a structure and do not inform your agent, you may not have coverage for claims occurring there. If you do not disclose this property, it may not have coverage in the event of a fire, theft, or storm.
As a business owner, your goal should be to protect all aspects of your property. A comprehensive commercial property insurance plan can do this. It should represent your property, buildings, all assets and risks at this location. Multiple locations may need different policies, though bundling them could help reduce costs. Insurance agents can help business owners to customize policies to meet their needs. Update them annually for accuracy.
Also Read: Preventing Visitor Liability Risks on Your Farm