What You Need To Know About Your Commercial Property Insurance

11/21/2018 (Permalink)

Fire damage in a Smiths,KY business

Running a small business in Smiths, KY, can be hard work. It can also be expensive. To protect your investment, you probably have a commercial insurance policy. If your policy is like most, though, it is full of legalese. Even though you may not have the patience to read through dozens of pages, you should know how your policy addresses fire damage.

Why Your Company Needs Fire Coverage

When referring to fires, insurance professionals use the following two categories:

• Friendly fires
• Hostile fires

With friendly fires, flames stay where you intend them to stay. Fires in fireplaces or stoves are examples of friendly fires. Hostile fires are those that leave containment areas and cause damage. For insurance purposes, coverage is often exclusively for fire damage from hostile fires. If your business’s policy does not cover these fires, you may have to pay for any damage on your own. Of course, no insurance policy covers fires you intentionally set.

What Fire Coverage Covers

Commercial insurance typically covers the damages your business sustains during a fire. While policies vary in coverage levels, most protect the following:

• Structures
• Outside buildings
• Equipment
• Inventory

If a fire does not completely destroy your business property, you may wish to work with a qualified fire-restoration specialist to restore your company to its pre-fire condition. Your commercial fire policy probably covers these expenses. Note, however, fire insurance does not usually protect your company from losses due to work stoppages. You aren’t out of luck, though, as you can purchase additional coverage to fill this gap.

Even small hostile fires can cause a tremendous amount of damage to the business you have spent years growing. As such, you must have a strategy for protecting your commercial enterprise from fires. With the right commercial insurance, you have the peace of mind you need to focus on meeting customer demands and maximizing profits.