What Does Property Insurance Cover?
Property insurance is essential for businesses, as it protects physical assets from unexpected events. Here’s a breakdown of what property insurance typically covers:
- Building Coverage: Covers the physical structure of your business property, including walls, roofs, and floors, against risks like fire, vandalism, or natural disasters.
- Contents Coverage: Protects your business's personal property, including equipment, furniture, inventory, and supplies, from similar risks mentioned above.
- Business Interruption: Provides compensation for lost income and operating expenses if your business is temporarily unable to operate due to a covered event.
- Equipment Breakdown: Offers protection against the cost of repairing or replacing damaged equipment that is crucial to business operations.
- Natural Disasters: Coverage may include events like floods, earthquakes, or hurricanes, though specific policies may require separate endorsements.
- Liability Coverage: Often included in property insurance, it protects against claims resulting from injuries or damage to others on your property.
Understanding your property insurance policy is crucial, as coverage can vary significantly between providers. Always review your policy to ensure it meets your business's specific needs.