WHAT IS PROTECTS AGAINST: The insured’s buildings, business personal property and personal property of others. Loss of business income or extra expenses incurred because of physical loss by a covered peril to the insured’s property can also be covered.
HOW IT WORKS: Some policies cover multiple causes of loss specified in the policy, such as fire, windstorm, hail, and explosion. Other policies cover any cause of direct physical loss not specifically excluded, the preferred approach. Difficult-to-insure causes of loss, such as flood and earthquake, can sometimes be added by endorsement.
WHO NEEDS IT: Most businesses because mortgage lenders require at least some level of property coverage.
WHAT YOU NEED TO KNOW: Premiums are based on business location, financial stability, security features, fire hazards, and whether any construction is taking place on an insured’s site.