If you're a business owner and don't currently hold business property insurance coverage, now is the time to start shopping around for quotes. Specifically, business property insurance can protect you from liability and unexpected costs related to disasters that occur on your property and beyond. Before you make a decision about purchasing a policy, however, it's important for business owners to know the realities behind some of the most common business property insurance myths out there.
Myth 1: Contractors Who Work Off-Location Don't Need Property Insurance
Perhaps the most common and dangerous myth about business property insurance is that it's not necessary for those who perform their work outside of the property location, such as at a client's home or place of business. Consider, for example, a situation where a plumber traveled to a client's home to replace a burst pipe. Unfortunately, the repair is botched and part of the client's home ends up being flooded as a result.
Unless you have property insurance, there is a good chance that you will have to pay out-of-pocket for the costs related to repairing the damage. With a property insurance policy, you could be protected.
Myth 2: Flood Protection is Automatically Included in Property Insurance
Speaking of water damage, if you do own and operate your business out of a commercial property, don't make the assumption that flood coverage will automatically be included in your policy. Generally, water damage covered in a standard policy will only include damage related to burst pipes and roof leaks. In the event of a natural disaster, such as a flood, you will most likely need a separate type of property insurance or an addendum to your existing policy. Still, for most commercial properties, this added coverage is more than worth the cost.
Myth 3: Business Property Insurance is a Waste of Money
Some business owners opt out of insuring their commercial properties because they think their money is better spent elsewhere, but it's important to understand that not having this coverage could put your business and personal assets at serious risk in the event of a disaster. Not only with this type of insurance give you added peace of mind, but you're also able to write off the cost of commercial property insurance on your taxes. This can help to relieve some of the financial burden associated with purchasing this coverage.
Now that you know the truth behind many business property insurance myths, you can make a better informed decision regarding your coverage!Share