How Business Contents Insurance Can Save Your Company’s Hide
Obtaining business insurance in general can be a very frustrating process lasting anywhere from a week to a month or longer. That said, it is also a most liberating and fulfilling accomplishment because when you have it, you can rest assured that in the event of a catastrophe or victimization, your business will be protected. This article will help educate you on one facet of commercial insurance called business contents insurance.
There are generally speaking, four types of commercial insurance. They are:
– Business Auto
– Business Liability
– Workers Compensation
– Business Property
Business contents insurance falls under the umbrella of the business property category, along with premises insurance or building insurance. Easily put, business contents are the movable items located in a business building or on a business property. The reach of coverage usually spans from fire, smoke, theft and vandalism, and even falling objects.
Commonly insured items include chairs, computers, printers, security systems, fax machines, books, book cases, desks, manufacturing equipment, manufacturing tools, and any product inventory or supply inventory. While it is common that premises insurance and contents insurance are often bundled together, they are inherently different and require separate attention.
Another important distinction when it comes to insuring business contents is in how claims will be paid. Choosing one over the other will play a large part in the costs of insuring. Replace as new is the first choice and indemnity is the second. Replace as new means that insured items will be replaced with a new one with no regard for the actual value of the destroyed or damaged item. This coverage is more expensive. Indemnity on the other hand is much cheaper because the insured item will receive a settlement amount based on the depreciated value of that item. The premiums in turn are much cheaper.
Having a basic understanding of what this insurance is and what it covers is only the first step. Getting a good quote is the second step, and unfortunately, not all quotes or insurers are created equal. Some commonly overlooked issues that separate good coverage from bad coverage are as follows. Do I need a deductible to help offset high premiums? If I have employees out in the field, do I need coverage that protects their equipment while they are off the premises? Is my software covered? Do I need valuable papers protection in order to recreate damaged or loss documents? How am I covered if there is a flood? Do I need employee theft protection?
Answering questions like these will help you see what type of coverage you need, and the more questions you can create and answer, the better off you will be. Most companies have too much insurance (and therefore waste money on premiums), or too little. Finding the perfect medium and appropriate options is what makes obtaining insurance for your business contents such a long and arduous process. Remember to get multiple quotes from different companies, and continue to research and look up everything you can about business contents insurance before you make that first appointment with a licensed insurance agent.