Do you know what kind of insurance you need? Chances are, if you’re an entrepreneur just starting out, your answer to that question is no. It can be hard to know exactly what you need without advice from someone who knows what they’re talking about, so read on to learn more about the different types of property insurance and which one you should get for your business.
Types of property insurance
Although there are several types of property insurance to choose from, most fall into one of two categories: All-risk or named perils. If you’re starting a business, it’s smart to get both types. Property insurance coverage that protects you against all risks—also known as comprehensive coverage—is usually more expensive than named-perils coverage because it covers just about anything that could cause damage or destruction to your property.
This kind of insurance will cover you if your business is held liable in a civil suit, such as an accidental injury or theft by a customer. When it comes to general liability, coverage options depend on who’s injured and how badly they’re hurt.
If you’re a business owner who drives to and from work, it’s essential that you have commercial auto insurance to cover yourself and your car. The coverage is similar to what you would have with standard auto insurance, but includes specific protections and exemptions related to your business use. To learn more about commercial auto insurance,
Generally, commercial property insurance will cover physical damage to your business location as well as loss-of-business income if you must temporarily close down. For example, if a fire damages your office building but doesn’t lead to significant water or smoke damage to its contents, such as equipment and inventory.
Specialty coverages (Earthquake, Flood, etc.)
If you do business in high-risk areas (e.g., a city that’s prone to earthquakes or coastal regions susceptible to flooding), then special property coverage is likely necessary. Without it, if your business property is damaged or destroyed by natural disasters, you won’t be able to recover anything.
Renters and landlords insurance
The type of insurance coverage you choose depends on whether you’re a tenant or landlord. If you own your property, renters and landlords insurance protects your home and belongings. Renters insurance will cover your personal belongings, while landlords insurance covers damage to your property. Since many renters do not have their own insurance, many landlords require their tenants to carry some form of it. To find out more about these types of insurances, speak with a local agent.