Review Your Insurance Coverage
Consider Tenant Coverage
The time to review your insurance policy is before disaster
strikes and you have to file a claim. It is important that your
business have both the right amount and type of insurance for
its needs and risk profile. There are two types of policies you can
buy as a business owner:
• A Business Owner’s Policy (BOP) is commonly used by
small businesses. BOPs combine property and liability coverage
in one policy and are usually less comprehensive than a
commercial policy.
• A Commercial Multi-Peril (CMP) Policy, combines several
coverages — such as commercial property, liability, inland
marine and commercial auto — into a single policy. It is typically less expensive to buy a CMP policy than to buy the coverages individually.
If you rent or lease a building, consider tenant coverage,
which will insure your on-premises property, including
machinery, furniture and merchandise. The building owner’s
policy will not cover your contents.
Opt for Replacement Cost Coverage
Visit the Business Insurance section of the I.I.I. website for more
information.
Most commercial property policies provide either replacement cost coverage, actual cash value coverage, or a combination of both. Replacement cost coverage will pay to rebuild or
repair property, based on current construction costs. Actual
cash value coverage will pay to rebuild or replace the property
minus depreciation. Depreciation is a decrease in value due to
wear and tear or age. If your business is destroyed and you only
have actual cash value coverage, you may not be in a position to
completely rebuild.
Don’t Forget About Flood Insurance
Flooding is not covered by standard commercial insurance policies, so consider buying a separate flood policy. If
you’re located in a high- to moderate-risk flood zone, you
could be protecting your business from devastating financial
loss. Commercial flood coverage is available from the National
Flood Insurance Program (NFIP) and provides up to $500,000
in building coverage and $500,000 for contents. You can also get
coverage through private insurers. S
FBS can help you protect your business
and an affordable rate. To find out more,
contact the BB&T Insurance Services
ServiceNow team at 888-399-2040 or
[email protected].
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SCORE | 2015 Issue 4
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