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Business Property Insurance Basics

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What is business property insurance?
In the case of loss from fire, theft or vandalism, business property insurance provides financial assistance to help cover the cost to rebuild or repair business property so that operations can continue with as little disruption as possible. This includes compensation to repair damaged business property or replace what you've lost.

Who generally purchases business property insurance?
Most businesses.

Why buy business property insurance?
Costs to replace or repair damaged physical business property and assets can be staggering. If it would be financially draining to replace your business property should it be damaged or destroyed, you should consider insuring your business property.

What does business property insurance cover?
Business property insurance protects your business against physical damage to, or loss of, your assets. Assets include the domain in which your business operates and its property (i.e., computers and inventory).

There are two types of business property insurance policies available: a named-perils policy, which only covers losses resulting from particular events named in the policy, and an all-risk policy (also known as special form coverage) which covers all events except those specifically named. Most businesses would benefit from all-risk policies, which typically have higher premiums.

Is additional insurance coverage available?
Additional insurance coverage is available, depending on the insurance policy. Some of these options will be included in your overall policy; others may be purchased separately.
  • Undamaged stock protection: Covers undamaged items that can no longer be marketed because of the damage to related goods.
  • Data or records protection: Covers loss of data or records that were destroyed and will take time and money to reproduce.
  • Computer virus protection: Covers the loss of data and business through computer viruses.
  • Intangible coverage: Includes patents, copyrights and trademarks.
  • Off-premises property protection: Coverage is extended to protect business assets in other locations such as trade shows, fairs, exhibits or any remote location where your business is working with company-owned equipment.

The type of business you run, the location and the region in which you are doing business are all considered when determining which risks are more likely to affect your business.

A variety of property insurance policies are available to business owners. There are policies that cover only a single situation or cause of loss, such as a fire insurance, crime, or electronic equipment policy. Additionally, there are policies that include several different coverages bundled into a single package policy.

If you rent your business space, your lease may require that you obtain a specific amount or type of property coverage. Be sure to check your lease for any insurance requirements before you purchase a policy.

If you have a home-based business, be aware that most business property is not covered in a homeowners policy. Check to see whether your homeowners insurance is limited or voided entirely if you run a business from home. If so, you'll need to obtain a business property insurance policy in order to insure your business assets.
Call Insureon for a Free Quote1-844-387-3238
Business PropertyGet a Quote
Wells Fargo Insurance, Inc. (Minneapolis, MN) is a licensed agency that represents — and is compensated by — the insurer based on the amount of insurance sold.