BUSINESS PROPERTY INSURANCE & COVERAGE

Property Coverage

Property coverage can be divided into two segments in the business policy:

• For fixed property (buildings, fixtures, etc.) and contents (equipment, inventory, etc.)
• Purchased as a combined single limit (see Limits section)

Your property can be covered as:

• all risk
• as specified peril (see Limits section)

Exclusions

Almost all policies, exclude such events as wear and tear, as insurance is intended to cover sudden and accidental occurrences.

Example - If the motor in your 1952 copier suddenly ceases up and the copier dies, don't expect coverage for the copier. However, if in its dying throes, the copier shorts out other equipment on the same line, there could be coverage for the other equipment (provided there are no exclusions for shorts) which is resultant damage of the copier wear and tear; and it would be the same if a fire resulted from the copier.

What is covered under the property section?

The property section will cover the building (if other than your home) in which you do business:

• The fixtures utilized to run that business - commercial stoves, fixed racks, etc.
• Carpeting, drapes, etc.

Example - A water pipe breaks and floods your office. The carpet, drapes, walls and ceilings would be covered under building coverage.

Contents used in your business are also covered here, if you elect this coverage. This includes all non-permanently affixed items.

• Your computer
• Your forms
• Your inventory
• Your stock, etc.

Example - The desks, computers, files, etc. would be covered under contents coverage.

There are also specific type of content policies which can be purchased to protect content, material on computer discs, ideas, etc.

Commercial Auto Policies

Commercial Auto policies can include:

• collision
• comprehensive
• rental
• towing coverage for the automobiles owned by your business

Collision occurs when your vehicle hits, or collides, with another object (some policies, do not include hitting animals or falling objects under collision, but place damage caused by these in the comprehensive section), or if the vehicle overturns.

Example - One of your employees are rushing to make a delivery and hits a pothole, damaging the undercarriage of the car. This is considered collision, just as if he had hit a telephone pole or another car). Comprehensive picks up all covered losses that are not considered collision.

Example - Someone sneaks in and keys scratches into the paint on all of your company vehicles, comprehensive coverage pays to restore the cars to pre-loss condition. Or, if your vehicle is caught in a hail storm, or catches fire, the resulting damage is also covered by comprehensive coverage.

Personal Injury Protection (PIP) and Medical Payments (MedPay)

PIP and Med Pay are also part of property coverage. In an automobile, these coverages exist to cover medical expenses regardless of who is at fault. State law vary on which policy is primary for these coverages, if the driver of the automobile is other than the owner.

Example - Your employee slams his finger in the car door, PIP coverage pays for the medical treatment cost, with no discussion on who is at fault.

For business policies, MedPay is usually available to pay for medical expenses incurred due to injury occurring on the premises of your business - again regardless of fault.

Example - An elderly customer seems to fall for no particular reason. You are not necessarily at fault, but for good will purposes, you take care of the doctor visit. MedPay takes care of the cost.

It is important to note that most of these coverages (first party coverages which apply to property owned by you, or within your control) require that you choose a deductible. The deductible is the monetary portion of the damages which you, as the insured, will bear when a loss occurs. Deductibles vary according to the choice of the insured. The good news is the higher the deductible, the lower the premium; however, know that if you choose a $1,000.00 deductible, the insurance company will pay for all.

A thorough discussion with your agent will determine which particular coverages best fit your needs. There is no such thing as "full coverage". Your policy coverage is as complete as the coverage you choose. Don't assume something is covered - ask to be sure. Also don't assume that coverages are packaged together in premium costs. For instance, comprehensive and collision coverages are, most often, sold together, but carry individual premium costs. Make certain that your agent spells out all the details.

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