As a business owner, your business is a passion project that rightly gets all your attention and hard work. Wouldn’t you then do everything necessary to protect every inch of it and help it thrive? Commercial property insurance is a vital tool in your strategy toolkit that when employed, can not only help protect your business but also take it to a much more elevated level. Here is a quick look at what commercial property insurance is, and a close look at the four ways in which it can help increase your profits.
Commercial property insurance protects all the physical assets of your business from threats such as fire, broken or burst pipes, explosions, theft, and vandalism. This kind of insurance doesn’t usually cover natural causes of damage such as earthquakes and floods unless they’re specifically added to your policy. How much you pay for commercial property insurance is a combination of parameters such as the value of the assets, location, type of construction, occupancy, etc. This type of insurance usually includes the actual building, as well as everything in it and just outside of the building. This can include furniture, computers, equipment, signage, fencing, landscaping, inventory, documents, others’ property, etc.
There are several ways in which commercial property insurance helps boost profits, either directly or indirectly. Let’s take a look.
Equipment breakdown or damage is part of the business. But a large loss to property or damage can lead to shutting down the business permanently or temporarily until the business owner can collect the amount needed to fix the problem. Having an insurance policy means your business is covered as far as expenses to fix damages are concerned. This means you can keep the business going and growing even when the inevitable happens.
When equipment breaks down and you quickly address it, thanks to the funds from your insurance policy, you don’t suffer a loss of reputation. This lets you get back to business as usual and lets you focus on growing your profit. On the other hand, if your customer is kept waiting for their orders to be met simply because you’re still figuring out how to fund the expenses for fixing your equipment, then your reputation is going to suffer.
Commercial property insurance premiums are tax-deductible. When you write them off as business expenses, you get to decrease your taxable income and thus boost your profit. Moreover, since you don’t have to reach into your own pockets to fix furniture, equipment, or other property damage, you end up spending less.
A lot of larger organizations require their vendors to have a sound insurance strategy in place. Having commercial property insurance means that such businesses will feel more secure when handing you their business.
Commercial property insurance is critical in protecting your business in the long term. It saves you from losing all your investments in case of damage to your assets and helps you build your business with peace of mind and confidence.