Site Review, Risk Control Services, Rate Guarantees
Your livelihood is dependent on the survival of your business, so it is
imperative that you protect it against any potential threat—big or small.
For instance, a fire could destroy your business’s warehouse and the
contents inside, or a burst frozen pipe could damage important documents and
valuable papers. Worse, you could have trouble paying your employees during
a loss because your funds are devoted to repairing damage.
If self-insuring is not an option to combat these risks of loss, it is wise
to obtain property insurance. This coverage comes in many forms to suit your
specific needs. Before purchasing coverage, take a complete inventory of all
your business property to determine how much you need to insure. This
important step ensures you will have adequate coverage to continue your
business in the event of a covered loss.
Types of Property You May Need to Insure
Here are some examples of property that’s commonly insured:
· Buildings and other structures (leased or owned)
· Furniture, equipment and supplies
· Money and securities
· Records of accounts receivable
· Leasehold improvements and betterments you made to the rented premise
· Electronic data processing equipment (computers, etc.)
· Valued documents, books and papers
· Mobile property (construction equipment, etc.)
· Property in transit
· Satellite dishes
· Signs, fences and other outdoor property not directly attached to the
· Intangible property (goodwill, trademarks, etc.)
· Business contingency for suppliers
· Ordinary payroll
· Extra expenses as a result of loss
Types of Property Insurance Policies
Basic property insurance covers losses due to fire or lightning, including
the cost of removing property as a way to protect it from further damage.
Should you want to purchase more than basic coverage, you can buy a standard
policy that provides coverage for extended perils, such as floods,
windstorms, hail, earthquakes, acts of terrorism, explosion, riots, smoke,
civil commotions and vehicles that damage your property. Beyond that,
coverage for vandalism and malicious mischief can also be included.
Are You Buying Enough?
One of the most important aspects of purchasing property insurance is
making sure that you have purchased enough coverage to be adequately
protected. A typical policy will provide the replacement cost value for your
building and the actual cash value for your business property. Replacement
cost value is the amount that is necessary to replace or rebuild your
building or repair damages with similar materials, without considering
depreciation. Actual cash value, on the other hand, is the value of your
property when it is damaged or destroyed. This amount is typically
determined by subtracting the depreciation from the replacement cost
Most property insurance policies include a coinsurance clause, which
requires you, the policyholder, to share the cost of covered services up to
a moderate percentage of the actual cash value of the property. This will
allow you to receive full coverage for your losses. Should you decide to
purchase inadequate coverage for your property, you may be obligated to pay
a percentage of all losses, even if they are listed in the policy.
Benton Luttrell Company understands that determining your business’s value
is critical, so we’re here to help. Contact us today at 903.482.5255 to
learn more about our property insurance and loss control solutions to
protect your business.