You can purchase business property insurance on the basis of the property’s actual value, (the replacement cost minus depreciation), the replacement value (the cost of replacing an item without deducting for depreciation, or on an agreed-upon amount, which is generally used for art objects and other unique items.
Basic business property insurance will typically cover your losses in the event of a fire or a lightning strike. It will pay the cost of removing property to protect it from further loss. A standard small business owner policy will also usually cover losses from windstorms, hail, explosions, riots and civil commotion, and any damage caused by aircraft, automobiles, or simple vandalism. Optional business property insurance can be purchased, which will insure against perils such as earthquakes, floods, building collapses, and glass breakage.
What is important to know about business property insurance is that it can be categorized by what is insured, and by the events that lead to a loss.
The following checklist was created by the Independent Insurance Agents & Brokers of America, in regards to the business property that should be protected with business property insurance coverage.
- Buildings and other structures, leased or owned
- Furniture, equipment, and supplies
- Leased equipment
- Money and securities
- Records of accounts receivable
- Improvements and betterments you made to the premises
- Data processing equipment and media, including computers
- Valuable papers, books, and documents
- Mobile property, such as automobiles, trucks, and construction equipment
- Satellite dishes
- Signs, fences, and other outdoor property not attached to a building
- Intangible property (goodwill, trademarks, etc.)