Property and Income Insurance for Business Owners

10/30/2020 (Permalink)

Many business owners choose to purchase a commercial property policy

If your Broadview, MT, business is damaged by fire, the damage and disruption can be devastating. Fortunately, business interruption coverage and other types of insurance can help keep your company afloat.

Commercial Property Insurance

Many business owners choose to purchase a commercial property policy. Such a policy generally covers fire damage as well as other perils, like storm damage. In general, these policies cover both the building and its contents, including the following:

• Equipment
  
• Furniture
  
• Appliances
  
• Raw materials
  
• Goods (finished or not)
  
  

The exact coverage varies depending on a variety of factors, including whether you rent or own the building. Always consult with your insurance agent to make sure you have adequate coverage. Pay close attention to whether your policy covers the replacement cost or actual cash value. Due to depreciation, property generally costs more to replace than its cash value at the time of the loss.

Income Insurance
In addition to property damage, a business fire can also cost you money in terms of lost productivity during the fire cleaning and restoration process. For this situation, business interruption insurance can keep your business financially sound. This type of coverage is also known as income insurance. Such a policy covers lost income as well as a variety of expenses, including the following:

• Temporary relocation expenses
  
• Payroll
  
• Other fixed expenses, such as loan payments
  
  

For the income insurance payout(s) to most accurately meet your needs, it is important to keep good records and accurately estimate your expected income when purchasing the policy.
A fire can damage your property and disrupt your business, leaving you financially vulnerable. In addition to property insurance, a good income insurance policy can help you through a period of business interruption. While insurance can help you financially, a certified restoration company can help you with the physical repairs. They have the experience and equipment necessary to do the job safely and correctly.