Does my commercial insurance cover my business equipment?

Your business equipment is the lifeblood of your company. It represents a significant investment on your part, and if you don’t have your equipment, you can’t run your business property. The appropriate insurance coverage keeps your equipment safe in the event that fire damages it, it is subject to vandalism, or a natural disaster destroys it.

It doesn’t matter whether you’re running a small business out of your home or a multi-national corporation. Commercial property insurance is a requirement to keep your replacement costs low if disaster strikes. In addition to having coverage on your commercial property, you also want to ensure that you get coverage for the lost operating costs that come from the equipment downtime.

The business interruption rider prevents you from having large financial hits during the time period that it takes for the claim to get processed. When you’re operating on tight margins as a start-up business, it’s especially important to have financial protection against unforeseen circumstances.

Homeowners policies does not typically cover commercial property when you run a home based business. In fact, trying to make a homeowners claim for your business equipment may be considered fraud by some companies. Instead, the separate policy ensures that you have the right protection in place before you deal with any unfortunate circumstances.

When you’re arranging your policies for your business, consider related coverage such as the costs associated with restoring data from backups. If you rely heavily on your computer systems, bringing everything back up to speed may take some time. Make sure the company you choose gives you the exact coverage your business requires.