If you own your own business, on its own land, with its own independent building(s), you will need insurance to cover these facilities. Buidlings insurance is a policy that covers the cost of damage to the structure of the property. These policies normally include the building’s roof, walls, ceilings, floors, doors, and windows. Some building insurance will also cover the furniture, equipment, and inventory inside – some won’t. In addition, it is also possible to cover outdoor structures like garages and fences, if they are used for your business.

There are two “popular” types of buildings insurance, “named-peril” and “all-risk” policies. Named-peril policies cover the business property for any specific perils named in the policy – hence the named-peril designation. All-risk policies cover every possible hazard except for specifically named risks in the contract. Basically all-risk policies are a mirror image of named-peril policies.

As for property, you can have property insurance, which covers your business’s equipment and the building or buildings where you operate your business. In this type of policy you and your insurer determine a value for your property, which you need to make sure is fair. You don’t want the need to arise for this claim to be used and find out that you haven’t taken out enough insurance. Of course, the higher the amount covered, the higher the premium. There are many options for property insurance, and some of the insurance policies offered can be associated with specific risks. You can purchase policies that offer specific coverage for fires, there are also specific policies that deal with theft of data or general theft. Again, you must determine the type of insurance that is needed for your buildings and your property.

Take the time to sift through all of your potential insurance needs and make sure to discuss the coverage possibilities with your insurance professional. This way you can make sure that you have the correct policy for your company, a policy that you hope you never need to use.