There are several things you need to consider when starting a new business. One of the things you need to take into account is having property insurance coverage for your company.
As a small or big business owner, a property insurance cover helps you protect all your important assets, whether leased or owned, that are vital for your day-to-day operations.
These assets can be:
As already highlighted, property insurance is a policy designed to help business owners, both small and big, cover the costs to repair or replace company assets that may be stolen, damaged, or destroyed.
Although the terms and specific inclusions change from one policy to another, there are no significant market-level differences.
For this reason, policy terms, limits, and retentions are always customized taking into consideration the assets and acceptable loss limits for business property and revenue.
Generally, there are two main types of covers offered by insurance providers. They are:
Replacement cost: covers the financial costs of repairing or rebuilding property using materials of similar or comparable quality or standard
Actual Cash Value: Pays the current value of the damaged property as well as the cost to rebuild or replace property.
It can cover operations such as traveling between job sites, making deliveries, as well as transporting tools and equipment by offering protection from liability and physical damage claims against your company’s vehicles
Most small businesses prefer this type of policy in protecting their commercial buildings or personal business assets.
If you own a business in Saudi Arabia, having property insurance is a mandatory requirement.
Without this cover, you may be forced to cover claims and damage expenses out-of-pocket, which can destabilize your business and put you at risk.
Regardless of the sector that your company operates in, property insurance is essential for your business. Some of the businesses that can benefit from this coverage include:
Similar to any other insurance plan, a variety of factors are taken into account before determining the premiums to be paid by the insured parties.
For example, buildings located in cities and major urban centers that usually have effective fire protection are cheaper to insure compared to those located outside urban areas or in areas where there is little to no fire protection amenities.
To ensure you make the right choice, it is advisable to use an insurance broker who will assess your business risks and advise on the most suitable policy from a variety of options available in the market to address your unique needs.
For instance, when natural disasters such as fires or floods occur, they can cause serious damage or losses to your company’s property.
However, a property insurance cover allows you and your business to cope in case a covered risk factor causes loss or damage to your property.
For example, you can receive funds to either pay staff salaries or cushion you from depleting your savings.
For instance, if your retail business suffered a fire your insurance cover could cover the repair of your building and replacement of any damaged or destroyed stock and equipment.
Now that you have a better understanding of commercial property insurance, you may be wondering how all of this affects your business and where to go from here.
Having a customized property insurance policy in place and a broker who can help you navigate the terms and conditions, as well as the claims process, can save you money and, more importantly, time.
IHC is the easiest way to intelligently insure any business, whether you’re a small business, startup, or large corporation.
Contact our team of property insurance experts and get a free assessment of your business today.