You may not have considered the potential loss if your business rents space. Start-ups often neglect to purchase office contents insurance. This is because they don’t think about all of their equipment and the potential loss when they aren’t able to run business.
Your workplace could be located in your home. While some homeowner’s policies provide a rider for limited coverage for business assets, not all of them do. If you are a freelancer, you will be shocked at the amount of equipment you use and how high the total cost of everything. To determine if you need to purchase an individual policy for office contents or if a rider is sufficient, it is best to consult your homeowner’s insurer first. Do not wait for disaster to discover that you may not have coverage.
Additional loss is possible for individuals who have visitors or employees in their offices. You might experience a break-in overnight or on weekends where vandals steal your office equipment. But they are more likely to also take items from employee’s desks. There are many office contents insurance policies that provide coverage for your items as well as for personal effects of customers, employees, and clients.
A few policies that cover office contents also include coverage for visitors and employees who aren’t honest. However, it is important to read all the fine print as your policy may require you to prove that there was a break-in. Each company offers different features to their office contents policies. You should shop around to find the best one for you.
Many important client papers are kept in files. In the event of a fire, flood or other natural disaster, office contents policies can provide legal liability for the owner. This coverage is especially important for those working in the financial or legal services area, such as accountants or attorneys.
A policy that covers office contents may include coverage for additional costs associated with doing business, such as the cost of repairing or replacing damaged areas. You may need to relocate temporarily or rent equipment until your company settles the claim. These policies provide coverage for as little as 25% of contents coverage.
A policy that covers office contents must also include replacement cost coverage. Your workplace equipment will depreciate if it has been used for longer than a day. Anyone who is familiar with taxes knows that depreciation can be deducted from equipment used in business. If you file a claim, your insurance company will also depreciate the equipment. Although you may be able to find comparable used office equipment, this can take some time and effort. You can have sufficient funds to replace lost or stolen equipment by adding replacement cost coverage. An office contents policy will include a replacement cost rider. This covers the correct amount to replace lost or stolen equipment with similar equipment, with no depreciation.
Every company is different so check with your local agent to ensure you have the right coverage. You should also consider liability insurance and office contents insurance. You might find that a business owner’s policy includes both types of coverage. A professional insurance agent can help you find the right protection for your company.
