Here’s a thought that keeps small business owners up at night: If something unexpected happens to your owned or rented building, such as a fire or break-in, how will you restore your business to normal? Could you manage that critical — and costly — task while ensuring your employees get paid during this stressful time? If you're not adequately covered, the potential losses could shutter your doors for good.
As a small business owner, your livelihood depends on its survival, so you must be aware of your risks and take proactive steps to reduce your exposures. With commercial property insurance, you can secure valuable peace of mind against the financial repercussions of common building-related perils. Continue reading for information about property insurance benefits for small business owners and things to remember when evaluating potential coverage.
Do I (Really) Need Commercial Property Insurance?
As the cost of nearly everything continues to rise due to the ongoing effects of inflation, business owners might be hesitant to add another recurring bill to their books. However, the benefits of commercial property insurance far outweigh the cost of your potential premiums. Holding this policy can make the difference between a business that survives an unexpected event and a long-held dream cut short.
The Benefits of Commercial Property Insurance
Damaging events, such as extreme weather, fire, burst pipes, theft or vandalism, can throw your business into disarray, harming your bottom line as you grapple with funding the repair while maintaining your business. By securing commercial property insurance, you can help safeguard the future of your business by covering the replacement or repair cost of the essentials you rely on, such as:
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Your building and other structures, like sheds or storage buildings, whether leased or owned.
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Nursery or landscaping inventory, like exotic plants and building supplies.
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Computers, client records and any other valued documents.
Additionally, if you’re in a leased building, commercial property insurance can help you recoup your losses resulting from any damaged improvements you made to the property while renting.
Many small business owners secure commercial property insurance as a safety net against common perils. If you live in an area with enhanced risks, extended coverage options might be available to help mitigate your exposures.
Considerations When Purchasing Commercial Property Insurance
Before securing commercial property insurance, your first step should be evaluating your property with a comprehensive risk assessment. For Michigan nursery owners and landscapers, this assessment can include reviewing past natural disaster data and your likelihood of experiencing damaging severe weather events in the future, as well as any site-specific issues, such as the location's propensity for vandalism or theft.
By identifying potential threats that could harm or delay your ability to do business before they arise, you can secure the proper coverage that safeguards your assets while creating a resilient business. If you're unsure whether you've had a risk analysis conducted for your property or think it could benefit your business but don't know where to start, contact MNLA's insurance advisor for a free analysis.
Now that you clearly understand your property's risk, it's time to get a clear picture of its value. Establishing accurate property valuations is essential to policyholders as they factor into the calculations that establish your coverage and premiums. Without an accurate valuation, it can be challenging to get a clear picture of the total cost to replace or restore your commercial property in the event of a claim. If you end up securing a policy that undervalues this cost, you can end up becoming underinsured — leaving you to figure out how to make up the difference between what your insurance is willing to pay out and the actual cost of repair.
Commercial property insurance is one of the most basic and essential coverages a business owner needs to ensure its longevity. To learn more about selecting the best insurance for your business, contact insurance expert Ashley Thomas of Gallagher Affinity at 918.764.1619 or ashley_thomas@ajg.com for a free risk analysis and coverage review. Learn more about available coverage at gallagheraffinity.com/MNLA.
The information contained herein is offered as insurance Industry insight and provided as an overview of current market risks and available coverages and is intended for discussion purposes only. This publication is not intended to offer legal advice or client specific risk management advice. Any description of insurance coverages is not meant to interpret specific coverages that your company may already have in place or that may be generally available. General insurance descriptions contained herein do not include complete Insurance policy definitions, terms and/or conditions, and should not be relied on for coverage interpretation. Actual insurance policies must always be consulted for full coverage details and analysis. Insurance brokerage and related services provided by Arthur J. Gallagher Risk Management Services, LLC (License Nos. 100292093 and/or 0D69293).
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