Four Types Of Business Property Insurance You Need
You have a lot of responsibilities as a business owner. You need to make sure your operating expenses are paid, your customers are happy, and of course, that the property of your company is kept in good condition. When a natural disaster strikes or a driver crashes into your storefront, it is natural to worry about how you will keep the doors to your business open.
It is for this reason that having the proper insurance coverage is critical. Due to these demands, insurance for commercial properties is much more complicated than standard home insurance. Below, our Daytona Beach commercial property insurance claim lawyer explains the four most important types of insurance coverage you should have for your business.
Policies for Direct Damage
As its name implies, direct damage insurance covers the physical damage suffered after a disaster or an accident. In some instances, this type of insurance can cover damage to existing stock and personal property, as well. Direct damage policies can be structured in one of two ways. These are as follows:
- Named-peril policies: These policies only cover specific perils that are listed in the contract. Coverage is not provided for any other type of damage. Due to this caveat, named peril policies are typically cheaper, but you may not have the full protection you need.
- All-risk policies: All-risk policies work in somewhat the reverse of named-peril policies. These policies cover all types of damage, except what the contract specifically excludes. Due to the fact that coverage is much broader, all-risk policies are usually more expensive.
Of all the different types of insurance you need for your business, policies for direct damage are the most important.
Business Income Coverage
When an accident occurs and your property is damaged, you lose more than just the cost of repairing the structure. You also may not be able to continue operations, which means a loss of income. Insurance for these expenses are known as time element policies. These policies do not cover the profit you would have made, but they do cover the income you have lost, as well as the bills you will not be able to pay while your business is being repaired.
Extra Expenses Insurance
While business income insurance provides a way to compensate you for your income and pay operational expenses, extra expenses insurance covers you for any additional costs you incur due to an accident or natural disaster. For example, if you had to rent an office space for six months while your original building is repaired, extra expenses insurance would provide the coverage you need.
Coverage for Criminal Activity
Along with protecting your business from things such as wind, fire, and floods, you also need to protect it from criminal activity including vandalism and theft. The majority of standard policies do not include this type of coverage, so you need to know what your policy covers and if necessary, purchase an additional policy.
Our Commercial Property Insurance Claim Lawyer in Daytona Beach Can Help You File a Claim
When you have the right insurance policy for your business, you are ready for anything. At Bundza & Rodriguez, our Daytona Beach commercial property insurance claim lawyer can advise on what type of insurance you need and when necessary, help you through the claims process. Call us now at 386-252-5170 to schedule a case evaluation.