Standard business insurance will not always cover the cost of theft or damage to all business-related items. Here’s what you need to know to assure coverage for your valuables.
Businesses run from home
Because many businesses are run from home, it is common for business owners to assume that their homeowner’s policy covers their business items. However, homeowner’s policies often have exclusions for covering objects related to the business. Be sure you have a separate policy that covers your company assets.
Understanding the limits of your policy
Even with a business insurance policy, it is important to fully understand its limitations. Many policies exclude specific types of damage or damage to certain high-value items. Also ensure that your policy’s maximum coverage matches or exceeds the value of the business items you assume it will insure.
Your options
If the coverage is too restrictive or too low an amount, you can either switch to a more comprehensive policy or you can purchase a rider on your primary policy. In most cases, the rider will be the better (and cheaper) option. With a rider, you are taking out extra coverage on specific items. They will be listed precisely in the rider with coverage based on their value, leaving no margin for error or debate.
Be prepared
Keep in mind that having a policy may not be enough. Most insurance companies will ask that ownership of high-value items be documented so as to prove their existence. You can do this with a video, detailed list or spreadsheet. Note facts like the make, model, serial number, purchase price and estimated value.
Are you concerned about the insurance coverage you have for your business? Speak with your insurance broker to easily find out if any changes should be made.
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