Property Insurance for Business Owners:

When you think of property insurance, the first thing that will typically come to mind is insurance for the structure of the property itself. However, property insurance for business owners can cover a myriad of different areas. Let's take a look at what you may be included in your property insurance. Depending on your insurance company, the following benefits may be included in one policy, or you may need to add them on as necessary.

Accounts Receivable Insurance

This type of benefit will reimburse you for accounts receivable that you are unable to collect due to a destruction of your records, such as through flood or fire. Although it sounds like it will protect you from unpaid accounts from deadbeat customers, this is not the case. However, in the event that you are unable to recover your customer's account information, this type of benefit definitely comes in handy.

Business Income Insurance

You may have heard this type of benefit referred to as business interruption coverage. Basically, this type of insurance will provide you with reimbursement if your business is not able to function due to damage, a disaster or other covered incident. In addition, you should be able to receive reimbursement for renting space while your business is being repaired under most business income policies. Once your business property has been repaired, your benefits would cease.

Dependent Property Insurance

If your business is vitally dependent upon another business, this type of insurance would provide you with coverage should that business has a covered loss. For example, if your business requires a type of part that only one other company manufacturers, and their plant were to be destroyed in a fire, you would be unable to continue with your business until they are up and running again. This is similar to business income insurance, as it will provide you with reimbursement for your lost income while the other business is being repaired.

Employee Dishonesty Insurance

If you had an employee that stole money or valuable property from you, this type of benefit would reimburse you for your losses. This benefit will usually be figured on a "per loss" basis and will not include business owners, independent contractors or business partners. It is normally a blanket policy, which will cover all employees who are working under direction of the owner.

Equipment Breakdown Insurance

This type of coverage used to be known as "Boiler and Machinery" coverage. This benefit will cover your repair costs and replacement equipment that has become inoperable as the result of a mechanical failure. If you rely on specific equipment for your business, this coverage is necessary.

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