The meaning of Property Insurance

For you to be able to claim for these mishaps, you need property insurance.

Property insurance protects your business against any physical damage to, or loss of your assets. In disasters like, fire, theft, explosion or vandalism, having property insurance help you recover your loss – whether it's to repair damaged property or replace what you've lost.

Every business owner must have property insurance to protect his assets. Most business property insurance are tailored fit to the business and can cover a variety of losses, including damage from fires, electrical surges, or even theft by an employee.

Business owners can purchase additional types of coverage depending on their need. Property insurance can be insured in 2 ways namely: open perils and named perils. Commercial lines covers the following: automobiles, business owners (property and liability combined for smaller commercial customers), capital assets, crime and fidelity, electronic commerce, employment-related practices liability, equipment breakdown (known as boiler and machinery), farm, financial institutions, general liability, inland marine, management protection, market segments, medical-professional liability, package policies, property, umbrella, and workers compensation.

On the other hand, personal lines cover the following: automobile, dwelling property, homeowners (property and liability combined), inland marine (diverse personal goods), personal liability (including personal shoe).

Tenants can also buy property insurance. Since businesses can have large amounts of capital tied up in inventory and equipment, such damage could be disastrous without insurance to cover them. Residential renters can also benefit from property insurance, even many are uninsured. While many businesses purchase their property insurance policy through a business owner's policy (BOP), these bundles property and liability insurance into just one policy. Business interruption insurance and extra-expense insurance are 2 types of optional coverage in a property insurance policy that protects your business after a loss occurs. Business interruption insurance provides payments for expenses such as salaries, taxes and debts, as well as any loss of profit due to the interruption of business.

Extra expense insurance, on the other hand, pays the costs of temporarily relocating a business when a covered peril occurs.