Businesses should continually adjust their insurance protection, adding or removing coverages. Here are some key considerations for businesses when thinking about property exposures.
Businesses face a variety of property exposures just in the conduct of their normal business operations. Obviously, fire is going to be a major concern, but it could be that the building was damaged. It could be that their inventory was damaged. It could be that their supplier’s inventory was damaged. So it’s very important that they cover all of their streams of revenue so that if the worst thing in life happens, that they are able to recover through a property policy. Depending on the business style, the property exposures could be dramatically different. If you’re a manufacturer, you might have extensive use of equipment and inventory that you send to distributors. The distributor would have warehouses full of equipment and supplies that they would send to their retail stores. In the case of a manufacturer’s representative, they may not have large qualities of inventory, and would only need to protect their office exposures. Looking at the overall business operation, the question should be asked: What would you do and how extensively would it be if you had a fire/wind/lightning loss?