Property Insurance

Property Insurance:

Insurers are in the unique position of having encyclopedic information about the many different ways your business property could be damaged or destroyed, from fire and flooding to embezzlement. Property is also vulnerable as a result of a variety of other events such as electrical surges, accidental activation of a chemical sprinkler system or a computer virus .Open perils cover all the causes of loss not specifically excluded in the policy. The more common named perils include such damage-causing events as fire, lightning, explosion, and theft. Common exclusions on open peril policies include damage resulting from earthquakes, floods, nuclear incidents, acts of terrorism, and war. Named perils require the actual cause of loss to be listed in the policy for insurance to be provided.

ROLE OF PROPERTY INSURANCE

.

 Property insurance provides protection against most risks to property, such as fire, theft and some weather damage. Property is insured in two main ways—open perils and named perils. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, or boiler insurance.

The purpose of property insurance for the small business is to provide critical financial assistance in the event of a loss, so that the enterprise can continue to operate with as little disruption as possible. 

Because insurers know so much about what can go wrong, they can provide your business with the insurance coverage’s your particular type of enterprise requires. Without appropriate insurance, property losses can easily cause the entire enterprise to fail.

We cover here, in a general way, many of the more common types of property coverage. You can obtain full information about your particular policy by reading the policy itself and discussing your coverage needs with your agent or insurance company.

Property insurance alone is seldom enough, however. Firms with a good record on claims generally have more insurers competing for their business, so that they are able to find coverage more easily and often at a lower price than companies that have more losses .It should be but one part of an overall risk management and disaster recovery plan. On average, businesses that devote resources to risk reduction and risk control have fewer insurance claims..

.

PROPERTY INSURANCE POLICIES

And there are policies that include several different coverage’s in a single “package” The majority of small business owners find it more convenient and economical to purchase a package policy, which provides protection against many types of loss in a single policy. Insurers may create their own insurance policies. Many rely in part on a package policy format from ISO. The BOP is revised periodically .This policy is generally referred to in the insurance industry as the Business owners Policy (BOP).. The discussion here is based on provisions of the 2004 revision to the BOP.

There are policies that cover only a single peril, or cause of loss, such as a fire insurance policy, a crime policy or an electronic equipment policy. The particulars of the policies vary from insurer to insurer. Insurers offer small business owners a huge variety of property insurance policies.

                          CLICK HERE TO SEE MORE TYPES OF  INSURANCES