As a business owner, you probably know you need liability insurance--but many owners don't realize they may need additional fire insurance. Fires can completely destroy your business. Your building (whether you rent or own) may be devastated, your equipment made unusable, your revenue discontinued. Fires are not uncommon. In 2006, the United States saw 1.6 million fires, which created $11.3 billion in property loss. Be sure your business is fully covered.
There are several types of fire insurance. When looking at a fire insurance rate, be sure to consider which type of insurance for fire best suits your business' needs. The three main types of fire damage insurance are:
1. General liability policies covering fire insurance for businesses,
2. Business fire insurance designed for landlords,
3. And fire insurance coverage for home-based businesses.
Find general commercial fire insuranceNo business should neglect obtaining fire insurance (sometimes also called hazard insurance). Although some carriers provide specific fire insurance, most offer a hazard policy covering fire, flood and similar destructive forces. Be sure to ask for specifics when obtaining fire insurance quotes.
Buy fire insurance coverage for landlordsAs a landlord, you have many burdens. To protect yourself and your property, you shouldn't neglect to have fire insurance designed just for landlords. A good fire insurance policy covers your building and any property you might have within the building.
Purchase fire damage insurance for your home-based businessAlthough your regular home insurance policy may cover your home office, it usually only pays $2,500 or less for business equipment and a mere $250 if you're not at the premises at the time of the fire. And unlike a homeowner's policy, a home business policy will also provide business liability coverage--for example, if a customer is injured on your property.
- Some business-related items will usually require separate fire insurance. These include valuable papers, cash, jewelry and some electronics. Always be sure to ask detailed questions of fire insurance companies, making sure any unusual or especially expensive items will be adequately covered.