A Quick Guide to Business & Asset Protection Insurance

What Is Business Insurance?

Business insurance helps cover the costs of damage and liability claims incurred by your business. Your provider pays for the repair or replacement costs of damages caused by fire, theft, vandalism, and bad weather. Medical expenses are also covered if a visitor gets injured on your property. Overlooking this important business plan can cause you to pay substantial out-of-pocket costs when mishaps occur.

What Is Covered By Business Insurance?

Asset protection insurance protects you against losses should any material damage happen to your buildings, equipment, stock, and possessions. This policy is similar to a homeowners insurance or auto policy because it provides repair and replacement costs of damaged stock or assets.

Business interruption, or business continuity policy is a type of business insurance that kicks in to protect you against losses incurred when business operations stop temporarily. The types of losses covered can be physical or due to circumstances outside your control, such as a power outage. A business interruption policy is usually purchased as an additional policy to property insurance.

Some specialized policies can help protect your company’s physical and financial assets. These policies are designed to cover specific work-related threats like fraudulent activities by employees, copyright infringement, and a breach of security measures. You will be covered for legal expenses through liability claims against your brand. You can also take out insurance for in-transit assets.

Some professions or trades require specific policies, so it is advisable to check with your industry body for policies required for your business. Also, ask your colleagues for good recommendations to ensure maximum coverage.

The Importance of Asset Protection Insurance

Spending out-of-pocket costs can be detrimental to business growth, especially for SMEs that are in their development stages. Every business has assets that represent a substantial amount of investment. These assets include offices, factories, manufacturing equipment, technology, and vehicles. Manufacturing and retail companies tend to have high stock values, so property insurance is of utmost importance to protect against emergencies. Businesses are at risk of threats that can force them to discontinue their operations, so having a plan to minimize out-of-pocket costs can help speed the process of getting your operations back up and running.

Find out if you need additional coverage for high-risk fixtures and assets that exceed the limit of your business insurance. Service-oriented businesses tend to suffer huge losses if they lose access to their computers or communications network, so it is best to take out certain policies that fit your needs.

Most lenders require clients to have business or equipment loans before granting them property insurance.

How Much Will My Asset Protection Insurance Cost?

The cost of your asset protection insurance premiums may depend on many factors, including:

  • The type and value of your assets
  • Your coverage limit – the higher your limit, the higher your premium.
  • Your location- Providers tend to charge higher premiums for properties in affluent locations. High-risk areas with more reports of break-ins will attract high charges than low-risk areas. Similarly, if your assets are spread across several locations, it can increase your premium rate.
  • If you install safety equipment like a fire extinguisher, fire alarms, or auto lock systems, you may be eligible for discounts.

For all your business insurance needs, contact the team at Northeastern Group Ltd. Serving New York and beyond, we are here to make insurance a snap.

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