As a business owner, it is important that you have the right combination of insurance to protect both your equipment and property. This is true whether you own or lease the building you operate from. 

Generally, your business insurance will include coverage of both your building and its contents. If you own your building, your insurance will usually cover the structure itself as well as permanent fittings and extensions. If you lease or rent your building, your business insurance will usually cover any improvements you make while a tenant. 

It is important to have sufficient contents insurance to cover items inside your building such as machinery, equipment, furniture, and your stock against theft, damage, and loss. Most insurance companies will also allow you to tailor your policy and choose from several optional features. 

Business Property Coverage Options:

• Replacement Cost Endorsement – Covers the cost to repair or replace losses with a depreciation deduction.  
• Bylaw Endorsement – Covers the cost of rebuilding or repairing damaged property to comply with zoning or by-laws.  
• Consequential loss endorsement – covers spoilage or loss of stock due to temperature or humidity changes. This option also covers damage that occurs off premises due to power interruptions.  
• Flood Endorsement – Covers damage by natural and man-made floods. This option does not cover groundwater that seeps or leaks into the building.  
• Sewer Back-up Endorsement – Covers damage caused by the back-up of sewers, septic tanks, sumps, and drains. This does not include seepage from natural sources.  

• Sign Floater Form – Covers the cash value of exterior signs, communication towers, etc. 
• Miscellaneous Property Floater Broad Form – Coverage for items not already included in your policy which may be mobile. This also includes offsite locked vehicles.  
• Cargo Floater Broad Form – Coverage for other people’s property that you are being paid to transport or coverage of your property transporting in your own vehicles.  
• Contractor’s Equipment Floater Broad Form – this coverage is specifically for contractors. It covers your own equipment and equipment belonging to others that you are legally responsible for.  
• Tool Floater Broad Form – Coverage for all tools and equipment that you would normally use in your business. This coverage applies both on and off-premises, including inside locked vehicles. 

In addition to the coverage listed above, you may also be able to get coverage for other items such as valuable papers and records, walkways and parking lots, plants and trees outside the building, employees’ personal property, and more. It is crucial to have a conversation with your insurance broker about what kind of coverage you require for your business. 

When speaking to your broker, it is helpful to have certain information available, so they can quickly assess your eligibility and insurance needs. Helpful information to share with your broker includes how long you have been in business, your business activities, business location, number of employees, annual revenue and past claims history. With this information, your broker can begin to tailor an insurance policy for you to cover your equipment and property.  

Contact ICD today 

Are you interested in commercial insurance, or do you have questions about your current policy? If so, contact us today to speak to one of our brokers