Business organisations require dedicated spaces to operate from. Be it a service organisation or a manufacturing facility, the business property is where the magic happens. This place is where the assets of the enterprise like computers, machineries, equipment and even finished products are stocked up. Any damage to such a location can not only mean disruptions of business activities, but also can hamper the revenue generation activities in a cascading effect. For that reason, be it a rented or owned space, it is essential to get it insured using a commercial insurance for property.
Who should consider buying a property insurance?
Business owners that use an office space to operate from, be it for manufacture of products, render service, manage inventory, lease equipment, or use a specified space for any other purpose must consider buying a property insurance. The above list is not exhaustive but covers all organisation that either are engaged in manufacturing activities or rendering services.
In addition, the property from where the business entity operates need not be owned but can also be rented or leased. The owners of such property would want its tenants to use the property adequately without causing damage and thus a property insurance is advised.
Why should you consider buying a commercial insurance for your property?
The place from where your business operates is crucial and any damages to it can not only have financial setbacks but also limit the routine operations in more than one way. Thus, it is critical to ensure protection for the place of business relieving you of any financial stress regarding damages. Some property insurance covers are not limited to provide protection to the structure, but also the content within such structure. The contents for which coverage is sought needs to be specified at the beginning when purchasing the policy.
What is covered by commercial property insurance plan?
The coverage of different plans differs, however, more or less, the following is covered under a property insurance:
Standard fire and special perils: Factory units are often prone to fires, either as a result of electrical wiring running across the area for its various machineries or in a mishap. With fire coverage, damages due to accident fires, short circuits, explosions, lightning and various other events are covered. In addition, this coverage offers protection against other perils like natural calamities and man-made perils. Road and rail accidents are also covered under it. * Standard T&C Apply
Business interruption coverage: Next, this policy covers business interruption. The damage to business property can often mean interruption in business activities. Not only property damage leads to loss of production hours, but also hinderance in routine operations. With business interruption cover, these financial losses are covered by the insurance company. * Standard T&C Apply
Burglary cover: As discussed above, a property insurance not only safeguards against damages to the structure but also the contents within it. A burglary or theft of crucial machinery or equipment can mean hefty financial losses and at these times, a liability insurance policy for such damages can prove to be handy. * Standard T&C Apply
With various perils covered under a commercial property insurance, you can ensure protection to your business operations along with its assets. Remember that insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
