When you start your business, you think about all the typical obstacles that you expect to encounter, such as building a loyal customer base and creating a strong brand image. At the same time, you need to make sure your cash-flow stays positive and healthy and ensuring you offer products and services that are in-demand and unique.
What you may not think about is investing in small business insurance, in particular business property insurance.
You’ve got tons on your plate, so the thought of something happening to the physical business and its contents may be a bit more than you can handle. But this is precisely why small business insurance – in particular property insurance – matters so much.
So, let’s take a closer look at what property insurance is and why it’s beneficial.
What is Business Property Insurance?
Just as its name implies, business property insurance is meant to provide coverage for the physical location that your business either leases or owns.
As The Hartford explains, small business insurance encompasses a range of products and offerings, including business property insurance – also called commercial property insurance. While you may assume this is for businesses that have large buildings, that isn’t the case at all.
As The Hartford points out, even home-based businesses should look into it. This type of coverage will provide more than your standard home insurance would, so it’s that extra level of protection.
So, what’s protected? Business property insurance includes things like furniture, inventory, equipment, tools, and a physical location.
If you were to have to replace those items out of pocket you could be talking about thousands, or even millions, of dollars. Some reasons for damage could be a fire, lightning strikes, hailstorms, and other disasters.
The Hartford was founded back in 1810 and works to sell various insurance products through a network of brokers and agents. It is known for being a leader when it comes to property insurance, as well as other products.
What Are the Risks of Not Having It?
Some business owners may look at business property insurance as an unnecessary expense assuming that there is no need to spend the money.
Here’s the thing, property insurance isn’t essential until it is. In other words, you don’t want to take the risk.
Let’s say your business suffers during a natural disaster, such as a flood. Floods are notorious for the amount of extensive and expensive damage they cause.
The goal after a major disaster such as a flood is to get the business up and running as quickly as possible. If you don’t have coverage, then it’s up to you to somehow pay for all the repairs and replacement of items. Likely this will take time, leaving your business out of commission in the meantime.
Being Prepared for Emergencies
Business property insurance is all about being prepared for an emergency. No-one wants to think about it happening, but the fact is that it’s out of your control.
What you do have control over is how you deal with the aftermath and how quickly your business can be up and running once again after damage or loss.