How much property insurance do I need to buy?
There is no one answer to this because each business is different. You can consult with our business insurance agent on the dollar limit needed to cover your potential for loss. Obviously, a one-person contracting firm will need to purchase less insurance than a store with a substantial inventory. But each will need to make sure that all necessary business property is covered, that the limits of liability are sufficient to protect the owner and the employees, and that loss of income is protected.
In addition, each business has unique needs and situations that must be handled. If the store happens to be located in a FEMA designated flood prone area, the owner should invest in federal flood Insurance.
The business may wish to purchase reconstruction-of-accounts-receivable insurance to cover the loss of customer records. The costs of reconstructing those records, money borrowed because of delayed payments due to the records being lost, and lost payments from those clients whose records cannot be reconstructed are all covered.
New Jersey Liability Insurance protection also will vary from business to business. A retail business is more at risk for potential suits than a business that is not open to the public. Also, in some states, courts tend to respond more positively to lawsuits, increasing both the likelihood of successful lawsuits and the amount of damages awarded. In today’s lawsuit-conscious society, higher liability limits are extremely important and relatively inexpensive. Your small business insurance agent can help you decide how much coverage is needed for your particular business.
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Some of the top coverages on a commercial property insurance policy are:
Buildings and other structures (owned or leased)
Furniture, equipment and supplies
Money and securities
Records of accounts receivable
Improvements and betterments you made to the premises
Data processing equipment and media (including computers)
Valuable papers, books and documents
Mobile property such as automobiles, trucks and construction equipment
Signs, fences, and other outdoor property not attached to a building
Intangible property (good will, trademarks, etc.)
To establish the proper amount of insurance that you need on each property, and it’s contents, our commercial property insurance agents will help you review the types of property you own and their uses. Some of these items are covered in the basic policies. For others, coverage can be added by an endorsement, or rider. And some, like money and securities, may not be covered by a standard commercial policy and may require a second, separate policy.