If you are a business owner, it's important for you to cover the commercial property out of which you run your business with the right insurance policy. The following are seven things not to do when you purchase a commercial property insurance policy.
Buying only commercial property insurance and foregoing other types of business coverage
While commercial property insurance is important, it is not the only type of commercial insurance that a business needs. You need to not only insure your commercial property but also your commercial vehicles and equipment. You also need to protect yourself against liability risks with the right commercial insurance policy.
Failing to insure your commercial property for its full value
You need to be aware of what the market value of your property is before you decide on a commercial property insurance coverage option. You should insure your commercial property for its full value to enjoy complete financial protection for your company.
Being unaware of property safety updates that could lower your premiums
Many business owners will find that they can save on commercial property insurance if they make a few updates. For example, your commercial insurance provider might give you lower-cost property coverage if you invest in features like fire suppression equipment and more effective lighting fixtures.
Thinking that you won't ever need to update your commercial property insurance policy
A company's commercial property insurance needs will change over time. You'll definitely want to update your commercial insurance policy if you invest in an addition or if you purchase additional commercial properties that you want to have covered on your policy.
Assuming your policy covers you for flood damage
You cannot expect your standard commercial property insurance policy to cover flood damage. If you want flood damage to be covered, you'll need to invest in a separate commercial flood insurance policy or have a flood coverage endorsement added to your policy.
Neglecting to factor your policy premium payments into your company budget
Your commercial property insurance premiums will be a routine expense. Make sure you factor your insurance premiums into your company's overhead costs so that you can keep accurate track of your company's finances.
Assuming that your home insurance policy covers damage caused by commercial activities
You still need to invest in commercial property insurance coverage even if you're running your business completely out of your home. You cannot expect a home insurance policy to cover damage caused by commercial activities that you have going on in your home.
For more information about commercial property insurance, contact a local provider.