Commercial property insurance may be one of the best tools you can have to minimize risks to your business equipment. If your company has expensive equipment it relies on to function, it becomes essential for you to have insurance coverage for it. A basic property insurance policy may offer some protections here. However, it may also have some limitations. Here’s what you need to know to keep your property insured.
Discuss the Type of Equipment and Its Value with Your Agent 
When obtaining commercial property insurance, your goal is to educate your insurance agent about the type, amount and value of equipment your business operates.
This should include equipment used in the day-to-day operation, equipment such as computers used for managing the business, and backup equipment onsite. When possible, be sure your policy outlines what types of equipment are onsite. If necessary, you might need to document certain equipment by name or other information.
Also, be sure you understand the value of that equipment. If your restaurant’s grill broke down, you could not operate your business. Do you want the insurance policy to pay for a brand new grill of the same specs? Or, do you want your insurance company to provide you with a check for the current value of that grill?
Most often, you need enough coverage to get a new grill in place, if the old one is unrepairable. Your policy should reflect this, so you don’t put yourself in a financial bind.
Know When Repairs Have Coverage
Not all types of equipment repairs will have complete coverage. If your equipment stops working due to normal wear and tear, your basic commercial property insurance policy is not going to help. On the other hand, if it stops working due to damage from a covered fire, then the policy is likely to kick in and provide you with financial support.
Equipment breakdown coverage is a specific type of property insurance some companies benefit from. It can offer more protection under more circumstances, such as mechanical failures. Work with your business insurance agent to find out if this coverage is good for you. It may be time to update your policy to reflect the equipment on your premise.
Commercial property insurance should always provide enough financial protection for you to achieve your individual goals. If your policy does not, update it before a problem occurs and leaves you unable to keep your operation open.