Fire, Weather, Theft: Preventing Common Property Damage?

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Business insurance policies generally come with commercial property coverage. If a covered incident damages your building or belongings, you can get money to replace them.

Every property policy is different. Each has limits and exclusions on the type of damage covered. Still, most policies cover damage from hazards that have a high chance of occurring. Among the most-covered dangers are fires, theft and vandalism, and weather property losses.

The Ins and Outs of Property Insurance

When you start a business, you’re going to invest a lot of money in products, your building, displays, computer systems and more—and if something unexpected destroys your property, that signals a financial loss.

However, the thing about unexpected costs is that they’re just that—unexpected. You likely can’t predict if they’ll occur. You don’t want to pull money out of your profit margins for things you cannot expect. Commercial property insurance can lessen the impact of unanticipated damage on your business.

Let's consider an example of how your policy might help. If a tornado strikes your area, it might damage the roof on your building. The high winds might also damage windows, indoor and outdoor stock and other assets.

With property insurance, weather events generally have coverage. You won’t have to dig into your savings to get repairs for the damage the storm caused.

Common Coverage of Commercial Property Insurance

You already know that property insurance covers accidental, unpreventable damage to your business. Even if you have coverage for these hazards, that doesn’t mean you should treat them jokily. Insurance policies aren’t there just to help clean up messes; they’re supposed to help fix unavoidable damage. Therefore, business owners should do what they can to minimize the effect of this damage. Doing so might maximize the benefits offered by your coverage. A little care might also mean you can avoid some problems altogether.

Weather Safety

No operation is weatherproof. Most properties have durability. Still, owners must keep the business safe when severe weather threatens.

Know what weather threats are common in your area. If you know your location has a high risk of tornadoes, make sure your insurance covers wind damage.
Have routine maintenance done on your building. For example, regular roof, foundation and structural repairs can keep the building more secure and stable during significant events.
Keep an eye on the forecast. If you see significant weather developing, do what you can to secure the property. Tie down outdoor objects or move them indoors. Move sensitive items away from doors and windows.

Think about how lightning might affect electronics. Have surge protectors or other items in place to protect sensitive data or products.

Fire Prevention Techniques

Fires can originate from a lot of different sources within your business. Some might result from internal threats, while others might come from external hazards.

Have a regular electrical inspection. Inspectors can point out flaws in your wiring or setup that might lead to sparking or other fire hazards.
If you have gas systems, refill and use these with caution. Only operate these systems according to manufacturer directions. Only use licensed gas services to refill and maintain the system.

Monitor your utility use. If you overburden these systems, they might break down or corrode, which might raise the risk of fires.
Keep fire alarms, extinguishers and even sprinkler systems in good working order.

Theft and Vandalism Security

Unpreventable damage might prove manmade. Break-ins, theft, burglary and vandalism might lead to property damage. Often, your property insurance will cover these damages. However, you don’t want to make a claim in the first place.

Keep a full record of your stock on hand. If your current count does not align with your audits, you might need to investigate if a theft occurs. Do the same for your cash on hand.

Install security systems throughout the business. Make sure you place these in particularly sensitive areas. This might include entry and exit points, store rooms, secure areas and high-traffic spaces.
Don’t assume that anyone poses a threat to a business. However, learn how to spot both employees and customers who might run a risk of theft.
Never leave the business unsupervised without placing it under lock and key.

Getting the Correct Coverage

With a diversity of business needs, you’ll need to tailor your property insurance.

Most policies will come with limits and exclusions. For example, even though property coverage might contain weather protection, it likely won’t contain flood coverage. You'll need a separate policy for these needs.

Also, you’ll need to make sure you have protection for the most expensive items in your possession. Make sure your policy’s limits cover the replacement cost of various assets as fully as possible.

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