What Property Related Risks are Covered with my Insurance?

Your general business liability insurance protects your company against many risks and may also provide workers compensation to employees. A general liability business policy covers basic risks most any business will face in the course of operating such as protection against lawsuits and the fees and costs that accompany them. It also will cover medical expenses associated with injuries suffered on the company premises by employees or customers. Finally, a general liability policy will also provide coverage for business property whether it is owned or rented by the business.

Does Property Insurance Only Cover the Business Building?

The property related risks which your insurance covers can include damage done to the actual building where your business operates. But, property in the form of equipment owned by the business is also insured against damages. Anything that can be considered property is covered by general business insurance so it is important to realize that, in terms of insurance coverage, property can mean much more than real estate.

Many businesses would not be able to function without computers. If a company's computers were damaged after a storm or a break in, the property insurance within the general business liability policy would cover those damages. Computers are a good example of equipment property covered by a general business liability insurance policy. But, even less tangible items owned by a business can be considered property. Consider the information on your computers which is accessed and used by employees at your business every day.

The computers themselves are business property which can be covered under general business insurance. However, sensitive information stored on those computers can also be covered by insurance. But, they must be covered by specific additional insurance geared towards protecting damages done to computer data property.

Computer data is not tangible, but it is considered a form of insurable property. There are many more types of intangible business property suitable supplemental forms of coverage serve to insure. If you have determined by reviewing your existing policy that more specific property insurance is needed for intangible types of property your company owns, you can investigate purchasing these supplemental kinds of coverage.

What Damages Will My Property Insurance Cover?

General property coverage applies in an instance when there is damage done to the business property by a fire or a natural disaster. If your business property were to be damaged in a flood, your general policy may not provide coverage to you. Much like there is a need for a special kind of insurance coverage for computer data property, there is a special kind of coverage needed to protect against flood damages.

If your company does not operate in a flood zone or an area prone to flooding, you would not need or want to pay for coverage you would not need. This is one basic reason flood insurance for business property is offered separately. However, damages caused by a thunderstorm, tornado or blizzard can potentially happen to any business in any area. This is why coverage for damage to business property after a natural disaster is generally included in a basic business liability plan.

If your business can subsist on the general property insurance contained in your existing policy, there is no reason to go to the expense of changing that coverage. However, if there are future changes to your company, they may make it necessary to add specific forms of property related risk insurance to your policy for optimal protection. You know that it will not be very difficult to find and purchase just about any kind of supplemental insurance to cover just about any kind of business property.

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