Building Coverage

Coverage for your building is relatively straight forward. The key to this coverage is adequate valuation but there can be some not so obvious aspects to building coverage. Many consumers are not aware that permanently installed equipment can be considered part of the building therefore effecting the overall replacement cost of the structure. Debris Removal, the coverage that pays to remove debris after a direct loss, is often INCLUDED in the limit of insurance. Lastly, changes in building codes in most commercial property policies can be very limited so exploring the costs to offset this exposure is a wise decision.

Business Personal Property

This is your equipment (not permanently installed) and your inventory used in your business. Note that there is often a radius applicable to how far away the property can be from your premise. If you have property off premise be sure you review how that property would be covered. Also check to see if your stock is valued at the cost to replace or at the selling price you would normally charge.

Business Income & Extra Expense

Believe it or not the loss of income (net profit + continuing normal expenses) and extra expense (expenses incurred above your normal expenses to minimize your income loss) are considered a property coverage. This area of coverage is often misunderstood and can have some very surprising limitations. This is your operations disability insurance and the lack of appropriate coverage can be the difference of surviving a major loss or not. Not sure how it works, put it on your To Do list, it is that important.

Equipment Breakdown

What happens if your process equipment is out of service? What happens if the breakdown exposes your inventory or finished product to spoilage? Manufacturers of perishable products should consider this coverage and know how it works.