Massachusetts businesses that own land, buildings and equipment have a lot invested in their assets, and those investments should be protected. Commercial property insurance policies help businesses protect their assets against a range of possible risks.
Commercial property insurance policies are specialized property policies that have been designed to meet the insurance needs of businesses. These policies sometimes have commonalities with homeowners and other personal property policies, but there are also frequently significant differences between them.
The majority of Massachusetts businesses that own land or buildings can benefit from getting business property insurance, and many businesses that own expensive equipment may want coverage even if they lease whatever space they’re in. Without coverage, recovering from a major disaster that damages an asset can be prohibitively expensive. In some cases, recovering will even bankrupt a business.
Some businesses might even find that they’re required to purchase business property insurance. Property loans, in particular, frequently come with stipulations that the borrowing business insure the property that is being financed. This is done to protect the financial institution’s interest in the property.
Whether sole proprietors who run home businesses need business property insurance depends on the terms of their homeowners insurance, their business’ assets and other factors. Some homeowners policies offer basic coverage for home offices. Not all policies will cover a home office or equipment that’s used for a business, though, and those that do may offer only minimal protection.
Sole proprietors who are in this position ought to seek the advice of an informed insurance agent. An agent who specializes in business property coverage will be able to determine whether this type of insurance is necessary given a specific business’ situation.
Business property policies might offer a variety of protections. There are two main protections, however, that most policies make available:
Liability coverage is notably absent from most commercial property policies. Businesses require differing levels of liability protection, so liability coverage is frequently purchased through separate, liability-specific policies. Sometimes, these liability-specific policies are combined with property and other policies in a package solution.
There isn’t one amount of business property coverage that’s right for every business. When deciding what limits to select, businesses should take into account the outstanding balances on any relevant loans, the value of the property being insured, the cost of replacing the property, the business’ financial position and other considerations. An experienced insurance agent can help sort through all of the applicable factors and assist with selecting suitable limits.
Business property premiums vary because policies offer different levels of coverage. Where a property is located, the value of the property, the size of the property and other factors all may affect how much a business must pay for coverage.
An independent insurance agent can provide an accurate picture of how much insuring a specific property would cost. Unlike many captive agents, independent agents are able to request quotes from multiple insurance companies. Having several quotes in hand makes it easy to determine how much a policy with all necessary protections would cost.
If your business has a property in Massachusetts that needs to be insured, contact the independent insurance agents at Keefe Insurance. Our team has helped numerous businesses insure their buildings and other property with commercial property insurance, and we’d be honored to assist your organization.