Businesses need insurance. This you know. But it’s to remember that business insurance is not just one type of policy. It is many types of policies that apply to one operation. Perhaps the items that need the greatest diversity of policies are your business's contents.
There are many items and belongings in your business. Because of their differences, all will likely benefit from different types of coverage. What are these?
Possessions And Contents Risks in Every Business
You strive to create a secure working environment. Nevertheless, there is always a chance that some type of damaging accident might come along and impact the business. Whatever the occurrence, it could do damage to your property and the contents inside.
Consider just a few of the accidents that could damage business contents.
- Thefts or break-ins could result in the loss of contents or their damage or vandalism.
- Fires within the operation could burn possessions.
- Severe weather could damage items stored outside (and inside).
- Machinery or appliances could break down unexpectedly.
- If you transport materials, then a car wreck could damage these items.
Such accidents could damage any possession, in any business, at any time. You need to know how to respond to these losses. Commercial contents insurance can help you do that.
Costs Arising for Contents Damage
When contents damage occurs, you might not be able to do your work to the fullest. That could impact operations and your chances to make money.
Financial struggles might only intensify if the damage to your contents warrants replacements or repairs. That might equal more money to spend. Worse still, should customer items in your care sustain damage, the client might hold you responsible. Lawsuits could even arise as you try to determine if you must pay to replace these items.
Understanding Business Contents Insurance
If your business experiences property damage, many of the items inside might sustain damage as well. Commercial contents insurance can help business owners get a financial settlement to pay for the damage costs. Policyholders can protect their own solvency while still affording to clean up the mess.
Contents coverage might insure:
- Stock and inventory
- Materials used to make products
- Furniture and equipment within the business
- Furnishings, such as carpets or rugs
- Electronics, such as TVs
- Heavy equipment and movable equipment
- Machinery
- Computer systems, smartphones and tablets
- Office supplies
Most commercial property insurance policies offer contents coverage automatically. However, check with your Rotunno Insurance agent to make sure you don't need them to add it manually.
When you set up your coverage, you will need coverage limits to insure the full values of these items. Therefore, you will need to document item costs based on their current market value. You might need an appraisal in order to do so.
Once you know the appropriate figure for your contents' values, make sure your policy will pay for items' replacement cost values (RCV). This coverage will ensure you receive full compensation for your lost items at today’s market value.
Please note, you might have to ask your agent to add RCV coverage to your policy. Some policies will only pay an item’s actual cash value at the time of the loss. Cash value usually is an item’s depreciated cost. Therefore, if you want to cover the full cost of a new item, you might need RCV coverage instead.
Adding Extra Coverage to Your Policy
Some of the items within your business might need specialty insurance options. Ask your Pitts Insurance Team agent if you can include any of the following options on your coverage.
- Inland Marine Insurance: If you transport expensive business contents overland, off the business premises, this coverage can insure them during transport. In many cases, it can insure expensive items — such as computer systems or fine materials. Your standard property insurance might apply when you transport items of lesser value.
- Bailee’s Customer Insurance: If a customer leaves their property in your care, then this coverage can insure damage to these items.
- Motor Truck Cargo Insurance: You might transport client belongings. This coverage can insure these items while they are in transport.
- Equipment Breakdown Insurance: Should essential business items — such as printers, computers or other machinery — suddenly break down, this coverage can help you cover the costs of repairs. Therefore, you can lessen the time these items are out of commission.
- Cyber Liability Insurance: Computer data is just as important as any physical asset. Should data get lost, or get stolen by cyber thieves, then businesses and their customers could lose out. Coverage can help you pay for data recovery and system repairs. It can also protect clients and the business in the event cybercrime leads to private data exposure.
Whatever your business, and wherever you work, you will need to insure your contents. Talk to one of our agents today. We can help you analyze your specialized risks and needs to make sure you get the right policy.