As a business grows, it needs different things. When your operation was small and run out of your garage, there were many things you could get away with that you can’t when you move into commercial business space downtown. One of those things is property insurance. Without it, you are putting your business and your own livelihood in peril. Below are some of the reasons why a business needs to invest in property insurance.
It Protects Your Business During a Natural Disaster
There are many things you can plan for. However, some things you cannot. A natural disaster like a flash flood, tornado, hurricane or earthquake is one such event. You need property insurance to protect your company against such a scenario. Without it, the business may be a total loss. Even if the building physically survives, all the products and equipment inside may be destroyed or rendered useless. Without insurance coverage, it may be impossible to get back on your feet again. Property insurance can help protect you and make sure that is not the case.
It Protects Your Business From Theft
Sadly, every significantly sized business will have to deal with theft at some point. According to statistics, there are 27 million shoplifters in the United States. That means for every 11 people in the US there is one shoplifter. Insurance, however, can help protect your company from a significant loss from theft. It’s an important protection to have. Shoplifting can certainly begin to eat away at your profits in a significant way. A larger theft from a robbery or a break-in can be even worse.
It Protects Against Bad Tenants
If your business is renting out properties to tenants such as in an apartment complex or condos, property insurance is a must have. Property insurance coverage can certainly protect you as the landlord. It can help pay for the loss if equipment, furniture or fixtures inside apartments or other places within the property are damaged. Sadly, you can’t always trust tenants. Significant background checks during the tenant screening process can weed out most people that cause problems. However, this isn’t absolutely assured. Even ones you don’t suspect may end up being trouble makers. Having property insurance coverage for your rented properties can help hedge against that risk.
It Protects You From Lost Income
Sometimes the biggest loss from something that goes wrong in a business is not directly the event itself. For example, the local power plant could have issues that result in your business losing power for multiple days. Getting the power back on wouldn’t be a big deal and cost nothing for the business. However, the business that was lost from consumers who couldn’t shop at the store during that time period can be very substantial. Good commercial property insurance coverage should help compensate the business for this kind of lost income.
It Protects You From A Loss Due To Fire
Although we like to think we live in a time of cutting edge technology, people and businesses are still susceptible to the simplest threats. This certainly includes fire. According to the US Fire Administration, the loss from fire in the United States in 2013 totaled $11.5 billion. The loss for businesses, in particular, is enormous every single year. Even if you do everything you can to stop fire, one can still be sparked at random from something like a lighting strike. Having commercial property insurance can help protect you against such a devastating loss.
Overall, being a responsible business owner means taking action to protect your company and its assets. As your company grows, so does your responsibility to the business. Make sure you have adequate property insurance for your company.
I hope you enjoyed this article about the importance of property insurance for your growing small business.
Interested in more articles about business management?
Read My Blog Posts:
- Expanding Your Startup & Franchising
- Tips To Protect Your Company Finances
Published by Michael J Schiemer
Owner of Bootstrap Business
Money - Marketing - Motivation
Digital Marketing & Social Media
Mike Schiemer Builds Better Business
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