Property Insurance

Property insurance insures against loss or damage to the location of the business and its contents from a variety of “perils.” It can also insure the property of others in your control when the loss occurs. Property insurance can be for a specific risk or may be purchased in a package covering a different combination of causes of loss. You may choose to purchase components separately depending on your specific needs. For example, a fire insurance policy insures only against a fire loss to the location.

A tornado is not a fire and, therefore, that loss would not be covered. The insured location can be owned, leased or rented. While covered perils vary depending on the policy you purchase, generally it provides for repair or replacement caused by:

  • Fire – including damage from smoke and water used to put out a fire
  • Weather – lightning, windstorms, hailstorms, tornadoes
  • Equipment failure – damage from bursting of heating, plumbing or hot water systems
  • Explosions
  • Collapse of roof or walls
  • Damage by vehicles
  • Theft or burglary
  • Vandalism and malicious mischief

One of the most deleterious outcomes of property damage to a business is the inability to maintain operations. To protect against this, many business owners opt for Business Interruption Insurance.