If you are a business owner, you have undoubtedly heard of building and equipment insurance, which covers your business' buildings and all personal property under the care or control of your business. Even so, you may not yet be aware of everything else this insurance covers, and just how important it can be to you and to your business.
For instance, did you know that building and equipment insurance covers additions, alterations, and even repairs to your buildings? This type of insurance also covers items and equipment used to maintain your business' property.
Giving this type of coverage a second thought now? You should. Building and equipment insurance also provides coverage for furniture, fixtures, equipment and machinery; stock; all other personal property you and your business own and use in the business; labor, parts, or service by your business on other's property; and improvements you make to the building you or your business lease.
Similar to the personal property you own, the coverage also includes personal property inside and outside your business' buildings, or in vehicles within 100 feet of your buildings. And, interestingly enough, payment for damages done to personal property owned by others goes to the account of the property owner and not to the actual insured business owner.
There are a few types of property excluded from this coverage, and you should be aware of them. The types of property excluded from this coverage include: waterborne personal property; animals (in most circumstances); automobiles for sale; bridges, roads, walks or other paved surfaces; contraband; costs for excavations; certain foundations; land, water, growing crops, or lawns; money; piers, wharves, or docks; retaining walls that are not part of the building; and underground pipes, flues, or drains.
However, you can obtain additional coverage for your business' outdoor property, valuable papers and records, the personal property or effects of others, personal property at newly acquired buildings, property temporarily off-premises, and newly built or acquired buildings. Keep in mind, though, that several of the categories may have limitations about which you need to be educated.