What Coverages Does Business Property Insurance Provide?
Just as homeowners policies have multiple coverages, business property insurance policies frequently do too. In many cases, some of the main coverages that business property policies offer are similar to those found in homeowners policies. For example, a business property policy might provide:
- Coverage for a business’ physical building from many common perils
- Coverage for inventory, equipment and supplies kept inside a building
- Coverage against water and sewer backups
These are just some of the protections that are commonly available through business property policies.
There is one important distinction in the protections provided by homeowners and business property policies. While most homeowners policies include some measure of personal liability protection, business property policies normally don’t. Because businesses face such diverse liability risks, liability protections are usually provided through separate, specialized liability policies.
What Massachusetts Businesses is Business Property Insurance Right For?
Many Massachusetts businesses can benefit from having business property insurance.
Businesses that own buildings usually get this type of insurance, and they’re sometimes even required to carry a policy by the terms of their building loan. Businesses that don’t own a building may not need as much property coverage, but they might still have inventory, equipment or supplies that a business property policy can help protect.
For a few select businesses that don’t have much physical property, such as writers or professional a cappella groups, it might not be necessary to carry business property insurance. Most businesses, however, have property they can’t afford to lose and should insure.
What Types of Perils Do Business Property Policies Protect Against?
The exact perils that a particular business property policy protects against can vary, and they’ll be determined by the policy’s terms, conditions and exclusions. Nevertheless, there are some common perils that most policies provide protection against. For instance, many policies may cover:
- Wind
- Hail
- Fire
- Vandalism
- Burglary
Policies, depending on their terms, conditions and exclusions, may cover many other perils. Some policies offer sewer and drainage backup coverage, some offer coverage for damage caused by employees, and some have still other protections.
Do Business Property Policies Cover Flooding?
The majority of business property policies don’t offer coverage for floods. Business that want to insure property against flooding typically have to purchase a separate flood policy. Depending on where a business’ property is located, the business might be able to get coverage through the National Flood Insurance Program or the private marketplace.
Do Business Property Policies Cover Earthquakes?
Similarly, most business property policies also don’t provide coverage for earthquakes. Businesses that want to insure their property against the danger of earthquakes usually have to purchase a separate, earth-quake specific policy through the private marketplace.
How Can Businesses in Massachusetts Get Commercial Property Insurance?
For help finding commercial property insurance, businesses should contact an independent insurance agent who specializes in commercial insurance. An independent agent will be able to request commercial property quotes from insurers in Massachusetts. Once several quotes are gathered, the agent can also help businesses compare the different quotes and choose the one that provides the most robust protection.
