What Is Commercial Property Insurance?

Property insurance policies for small businesses may be purchased as a stand-alone or as part of a comprehensiveBusiness Owner’s Policythat includes property and general liability coverage. Your insurance agent can help you customize your coverage to address the specific risks facing your business, including selecting the type of property insurance coverage you may need.

There are typically two types of coverage offered by insurance companies: replacement cost or actual cash value.

• Replacement cost: Pays to repair or rebuild property with materials of the same or comparable quality.
• Actual cash value: Pays the current value of the damaged property, and the cost to rebuild or replace property, generally replacement minus depreciation.

In many cases, business owners lease space to run their operations. If you fall into this category, check your lease to review your obligations in terms of insurance. In some cases, sole tenants will be responsible for insuring the building or must continue paying rent even if the space is destroyed. It’s a good idea to review the lease with your insurance agent to confirm that the insurance coverage you choose is sufficient and will protect you in the event of damage or loss of the property.

Many types of business insurance are optional. However, while it may not be required by law, a property and casualty insurance policy is highly recommended for all business owners. Further, your landlord or lender may require you to carry property insurance to protect their investment.

Commercial property insurance protects your company’s physical assets from many unforeseen events, such as fire, explosion, storms, theft and vandalism. Additional coverage is often also available for floods, earthquakes, equipment breakdown and other direct causes of loss to your business.

Accidents and unforeseen events happen and can cause potentially significant damage and disruption to your business. A commercial property insurance policy can help to provide financial assistance to help you recover quickly.

There is no one-size-fits-all answer because all businesses are different. Your cost will depend upon the specific details of your business and the level of protection you seek. Some of the factors that may influence your cost include the nature and size of your business, number and condition of your facilities, loss protection and prevention practices, etc. The best way to determine your cost is to ask your professional insurance representative for a quote.

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Travelers umbrella.

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SPEAKER 1: What is property insurance? It takes a lot to keep your business up and running, like the space and equipment you rely on. And all of that needs to be protected. That's why you need commercial property insurance for your business, because it's about way more than just insuring your building. Suppose there's a fire and smoke damages your inventory or a thief breaks in and steals your equipment, commercial property insurance provides financial support to help pay for losses in the event of scenarios such as these.

Your property likely plays a key role in the operation of your business. Beyond your building, if you own it, property coverage can also include your office equipment, whether owned or leased, your inventory, your electronic data, and even outdoor items, like fencing or the sign out front. It typically covers losses caused by fire, theft, and damage from vehicles, acts of vandalism, and more.

Don't let an unexpected property loss throw off the plans and aspirations you have for your business. Know that not all property insurance is the same. Make sure yours covers everything you need to keep your business running, so you can stay focused on why you got into your business in the first place. To get started with commercial property coverage and other business insurance solutions, contact a Travelers independent agent or visit Travelers.com.

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Text, Visit travelers dot com. What is property insurance?

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