Property Insurance for Small Business

So you have your small business all set up, but do you have property insurance coverage? If you have none, then all is lost. Property insurance is a key aspect of every small business. Think of your property insurance as the glue that keeps your small business together. Without property insurance, your small business falls apart.

In small business, there are risks involved that you cannot personally control or eliminate. Without protection from these risks, your livelihood is threatened. Property insurance can give you the protection you need against these small business perils.

Property insurance for small business is different from home property insurance

This much is true. Because your small business is unique, you will have to design your own property insurance package. To meet the protection needs of your small business, your property insurance policy must be customized to cover all aspects of your small business.

Most property insurance policies for small business cover three general areas: property/contents, professional liability, and business interruption.

Small Business Property Insurance – Property/Content Coverage

Property and content coverage in a small business property insurance policy covers all the assets that your business owns. This aspect of small business property insurance protects the building and all its contents, including equipment and facilities, from damages or losses. In addition, your small business property insurance protects your business equipment from the dangers of fire, flood, or theft.

Small Business Property Insurance – Liability Coverage

Liability coverage in your small business property insurance policy is something that you can't do without. The purpose of this small business property insurance aspect is to offer protection against liability arising from negligence causing injury or harm to others, such as a customer or an employee. Simply put, the liability clause in your small business property insurance policy protects you from being sued. This aspect of small business property insurance pays for your legal fees in case of a lawsuit.

One minor aspect of small business property insurance that is closely related to this is product liability. This small business property insurance covers damages or loss arising from problems with a product which causes harm to its consumer. Professional liability is another liability coverage you need for your small business property insurance, especially if you're a professional, such as a doctor, architect, computer consultant, or a realtor. This type of small business property insurance protects you from damages resulting from error or omissions on your part.

Small Business Property Insurance – Business Interruption Coverage

Another essential aspect of small business property insurance is business interruption coverage. This aspect of small business property insurance pays for income you have lost while your business is stopped due to damages covered in the policy.

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