Commercial Property insurance is part of a Business Owners Policy that addresses every IT company’s critical property loss exposures.
The Property policy provides protection for loss to your physical property, tenant’s improvements and betterments, furniture, inventory, equipment, computer hardware and software, property of others at your premises and your property on the premises of others or in transit against loss caused by fire, windstorm, theft, vandalism, and more. The amount of coverage should equal the replacement cost value of all of the above property.
Coverage should also be provided for business income and extra expense in the event you lose income or incur extra expenses to get your business started back up again after a damaging event.
Important points to consider
You need to verify that your Property policy has been customized to protect your valuable computer equipment, software, media, and data against artificially generated electrical power surges, magnetic injury, and mechanical breakdown. Basic Property policy does not protect against these perils unless it has been specifically endorsed.
You still need a Property policy if working out of your home to protect property that is titled to your business. The reason for this is that most Homeowner’s policies only provide up to $2500 of coverage for your business personal property, which is not adequate coverage for many of perils that can impact computer equipment.
Please note that almost all property policies exclude losses caused by flood, earthquake, artificially generated electrical power surges, and employee dishonesty.
Property insurance is also the only way to protect against damage to the personal property of others that is in your care, custody, or control. This exposure is not covered by a General Liability policy.
Property insurance is very inexpensive when packaged together with General Liability under a Business Owners policy. The cost for both policies combined is often as low as $500.