Owning a small business can be a rewarding experience. However, if the owner is not careful, everything can be taken away in the blink of an eye. Small businesses that are not properly insured can suffer financial devastation from which it is impossible to recover. One type of insurance that is often overlooked by small business owners is property insurance. However, it is one of the most important types of insurance to have. Below are seven reasons to get property insurance for a small business.
1. Replacement of property after a natural disaster
A building that houses a small business is equally subject to the damage that can be caused by a natural disaster as a residence is. Further, if your home doubles as your office, the same storm-related damage could be doubly troublesome. The damage that results from a hurricane or tornado can cost thousands of dollars to repair. A small business owner likely does not have the capital or cash on hand to pay for these repairs out-of-pocket. If the business is not adequately covered by property insurance, it is quite possible that the business could go under if it is affected by a natural disaster.
2. Replacement of property loss caused by theft
Businesses are often victims of theft. Small businesses are particularly vulnerable to this nefarious act. When thieves victimize small businesses, the property they lose can be detrimental to the running of the business. Vandalism of the business can also be caused by employees of the company who wish to cause harm to the company. Regardless of who the culprit is, robbery of a small business is costly on multiple levels. Expensive office equipment can be stolen or broken beyond repair. Replacing office equipment can be expensive if the costs need to be covered by the business owner. Having a property insurance policy in place will provide coverage against damage caused by theft.
3. Coverage of lost income
There are numerous reasons a small business might lose income. For example, an extended power outage can bring business to a screeching halt with no warning. Although large corporations can withstand a temporary standstill in operations, it is not quite as easy for a small business. Suspended operations for a few days can bring about financial devastation that is difficult, if not impossible, to recover from. Having a solid property insurance policy is an ideal way for a small business owner to defend against such a potential calamity. It will provide compensation for the income that is lost when the business is unable to function as usual due to conditions beyond your control.
4. Coverage against negligence
Small businesses are run by people, and people make mistakes. Sometimes these mistakes are costly and can lead to serious consequences. A simple mistake such as neglecting to post a “Caution” sign can lead to a costly lawsuit. Any lawsuit can be financially devastating to a small business. Even if a case is settled out of court, there could be a significant payout that the business is responsible for paying. A property insurance policy will help cover the legal expenses and pay out costs of a lawsuit that a small business might face.
5. Coverage against accidents
Some accidents are caused by an employee’s negligence and sometimes accidents “just happen”. Unfortunately, it is far too easy for an employee or customer to either slip and fall or otherwise become injured on the property. Even in the case of non-negligent accidents, costly lawsuits can arise. Unfortunately, for a small business owner, the high costs are the same regardless of the reason for a lawsuit.
6. Coverage of others’ property
Sometimes a small business owner must be in the possession of someone else’s property. For example, a jewelry repair shop must temporarily keep someone’s watch to fix it or replace the battery. During these times, the business owner is responsible for the care and protection of the customer’s property. If it were to get stolen or become damaged, the business is responsible for replacing the item. Property insurance can help cover the costs of repairing or replacing the damaged, lost, or stolen property of the business’ customers.
7. Coverage for company vehicles
A small business that uses vehicles as part of their operations needs to have property insurance. If the vehicle is in an accident and the employee driving the company car is to blame, the business can be in trouble. Property insurance is also helpful if the other party in the accident is at fault but does not have insurance. Having a property insurance policy in instances involving company cars provides gives you the peace of mind that comes from knowing the business is covered in the event of a car accident.
Protect your small business and everything you have worked for by being properly insured. Having a property insurance policy can help you make sure you are able to keep your business, even if calamity strikes. If you own a small business and are in need of a property insurance policy, a qualified local insurance agency can help you find the right policy to fit your needs.
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