Commercial property insurance is designed to protect large and small businesses from unforeseen and disastrous events. Even home-based businesses should strongly consider getting coverage since homeowner plans don't typically provide compensation for home-based business damage. Tornadoes, floods, fires, vandalism, and many other unplanned tragedies fall under commercial property insurance policies. With many of these events come lost income, damaged buildings, business interruptions, and a host of other costly damages. Your individual business policy will provide specific details on which items are covered. |
When making a claim, you should calculate how much money you'd need to cover any damages that might occur. Be sure to read your policy thoroughly to find your maximum benefit as well as the deductible that will apply to this situation. For instance, your business inventory may have been damaged in a warehouse fire. You find that the maximum benefit that you can receive in this situation is $95,000 and your deductible is $750.
Next, you'll need to determine the value of the items lost in the fire. Perhaps the total loss is $50,000, or maybe it's $125,000. Either way, calculate the total value of the inventory that was lost.
Finally, you'll need to take your deductible and subtract it from the amount lost. In our lower example of $50,000, we would see a total of $49,250. This total is below your maximum benefit, so you should get full compensation. In our higher example of $125,000, we would see a total of $124,250. This total comes above your $95,000 maximum coverage. You would only receive the maximum amount allocated by your policy. So, you would be out $29,250. By valuing your items before hand you can get a policy that ensure you will be compensated fully should all of your business inventory be lost.
Commercial property insurance is necessary, but expensive! With a little extra research, you may be able to lower your premiums and save some money.
Look into getting a business owner's package, also called a BOP policy. Typically, these packages are more beneficial for small businesses. It combines all the different types of policies that you'll need as a business. Packaged premiums will often be lower than purchasing each policy separately.
Shop around for cheaper rates with other companies. Many coverage companies will offer price matching or premium reductions for clients who have found a legitimately lower quote from another company.
You may be able to increase your policy's deductible and lower the premiums. However, the deductible is your responsibility to pay, so make sure that you pick a number that you can reasonably cover in the event of damages. You don't want to make things hard on your business by picking a deductible that will be impossible to pay should you experience a tragedy.
Before you accept a lower premium, review your new policy thoroughly. A lower premium may indicate that less is covered in the event of damages. Once again, it's better to pay the higher premium than to kill your company because you can't cover the losses should a disaster occur.
When they need commercial property insurance, Mobile, AL business owners turn to Thames Batre Insurance. To learn more about their available policies, visit: http://www.thamesbatre.com.
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