Property & Equipment Insurance

Other Events That May Be Covered in Your Commercial Property and Equipment Insurance Policy

As a business owner, it is highly likely that you have made significant monetary investments in your company. Have you ever considered what could happen to your livelihood if the means by which you operate your business were stolen, damaged beyond repair, or otherwise unusable?

While no one likes to think about the worst-case scenario, putting your head in the sand and hoping for the best will not save your company should the unthinkable become a reality.

Depending on your line of work, your equipment may value into the millions of dollars. Even if you do not own expensive equipment, the property where you operate your business is also of great significance.

Having the best possible property and equipment insurance cover is a crucial part of running any type of company. This is why you should learn more about the property and equipment insurance options for your business.

What is Property and Equipment Insurance?

A property and equipment insurance policy will protect your means of doing business. If your building, tools, or intellectual property is damaged or destroyed, a commercial property and equipment policy will save you from great expense (or even the closure of your business).

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Do I Need a Property and Equipment Policy if I Rent or Lease My Business Space?

While your insurance professional can address your unique circumstances, it is often a wise decision for renters or lessees to get insurance cover for property and equipment. If you're unsure about your specific circumstances, contact our expert team today.

Commercial Property

Here's An Example:

Hope leases a storefront for her day spa. While she does not own the building, she has a large amount of money invested in all of the equipment needed to serve her customers, as well as the items that make her spa stand out from the competition.

Suppose a fire destroys the building. Most, if not all, of Hope’s equipment and decorative items will also be lost. If she does not have the necessary cover, Hope will experience a tremendous financial loss. The loss could be significant enough to force her to close her business permanently.

However, if Hope has insurance that covers the property and equipment, she will be able to replace the things needed to operate her business.

What Will a Policy Typically Cover?

Water Damage

As always, consulting with your personal insurance professional is the best way to learn all of the details within your cover. Generally speaking, your property and equipment insurance will cover:

  • Water damage caused by broken pipes or damaged water mains
  • Loss or damage to your property caused by theft, attempted theft, armed robbery, and vandalism. Some policies include employee dishonesty but it's best to consult with an insurance expert to learn more.
  • Damage to, or destruction of, glass and signage on your premises
  • Accidental damage caused by falling buildings, impact by vehicle or watercraft, falling trees, or damage from a neighbouring property
  • Damages caused by labour disputes, riots, or civil unrest
  • Breakdown of machinery including electronic equipment. You should check the details in your policy to learn any amendments or exclusions to this cover.

Other Events That May Be Covered

Damage to Commercial Property

Your policy may cover these circumstances, and often you can add specific occurrences to your cover by consulting your insurance professional.

  • Explosions
  • Goods damaged in transit
  • Earthquakes
  • Lightning strike
  • Damage from hail, sleet, or snow
  • Fire
  • Storm damage
Plant and Equipment Cover

What Are Some Specific Kinds of Property and Equipment Insurance That Might Be Useful for My Business?

Depending on the type of company you operate, you may want to look at the insurance that covers a particular niche. Some of these kinds of insurance include:

Type of Cover
Potential Benefits
Electronic Equipment
An additional policy for electronic equipment that is destroyed or damaged by an unforeseen event can save you a good deal of money in replacement or repair costs. Additionally, you may be able to add cover for equipment breakdown as well as the price to restart.
Cover that will protect manufacturing equipment, air conditioning, boilers, refrigeration equipment, and factory production lines.
Business Interruption
Adding business interruption insurance will help you make your payroll and payments to those who supply your operation while you are closed due to an unforeseen event.
Industrial Special Risk (ISR)
Typically, this insurance will cover your business if the value of your assets is above three-million dollars. Specifics of ISR can vary; learn details from your insurance professional.

*Please Note*

The material provided here is for informational use only. It does not constitute professional advice regarding insurance products. Contact an insurance expert to learn about the options that best suit your circumstance.

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