If you’re a business owner, you need to protect the property and equipment
If you’re a business owner, you need to protect the property and equipment you use to run your company. One way to protect your assets and inventory is through hazard insurance – here’s how it works and how to get hazard insurance for business property.
Hazard insurance, also known as commercial property insurance or business property insurance, is a type of business owner's insurance policy. If your property is damaged due to a threat e.g. an accident or vandalism, then this type of policy covers the cost of repairing the property or replacing equipment.
Are you a homeowner with a home-run business? You might have hazard insurance as part of your homeowners’ insurance policy – just make sure it’s sufficient to cover your needs.
Hazard insurance, or commercial property insurance, covers a range of business risks. Most policies cover damage or loss resulting from:
The exact level of cover varies depending on your policy. For example, some policies will cover water damage, whereas others will only cover certain types of water damage, and so on.
Not all events are covered by hazard insurance. Hazard insurance often excludes acts of war, terrorist attacks, earthquakes, and other natural disasters. You may need additional insurance products, such as flood insurance, to cover these incidents, depending on your business.
Typically, to protect your business more generally, you’ll need other policies such as general liability insurance or commercial auto insurance.
Any business owner can benefit from hazard insurance. However, it’s especially beneficial if you:
Even if you’re a sole proprietor, or you run a home-based business, you could still benefit from hazard insurance.
The exact laws vary by state, but hazard insurance is not always legally required for a business. However, even if it’s not a legal requirement, it’s still crucial to protecting your business – and your assets – from significant losses.
The cost varies – no two businesses are the same. How much you’ll pay for hazard insurance depends on factors such as:
Shopping around is the best way to get hazard insurance for a small business – contact InsurePro to learn more.
Yes. If you want to qualify for a loan from the Small Business Administration (SBA), then you will need hazard insurance.
The reason for this is simple: before the SBA lends you money, they want to know that your property is secure. They need to know you can afford to repair your property or replace damaged equipment to get back up and running.
Otherwise, if there’s significant property damage, there’s a chance you won’t be able to resume your business, which makes it much harder for the SBA to recover the loan amount.
Proof of hazard insurance is simply your paperwork proving that you have property coverage in place. Your insurance company can provide you with any documents you need if you’re required to show proof of hazard coverage.
If you’re a small business owner, then you need to protect your business with the right level of insurance coverage. The experienced and friendly team at InsurePro can help you find sufficient small business insurance to protect your property, assets, and employees – it only takes a few minutes to get started.
So, whether you need hazard coverage or general liability insurance, we’re here to help. Request a quote today!