Business Contents Insurance

Businesses face all kinds of risks on a daily basis. Here’s how to reduce your businesses exposure to risk with business contents insurance.

Generally, business contents insurance covers items such as office equipment, machinery, computers, office furnishings and so on. These items might not be covered by the property insurance that covers the building itself. And that’s where business contents insurance can help protect the business against risk of loss of these mission critical business items. Business contents insurance can be an important part of a business’s continuity plan.

Let’s consider for example a small business with 10 employees occupying a building they own outright with warehouse space. Now let’s suppose a fire occurs in the building during off hours and destroys all the computers, office equipment and two forklifts. The business contacts the company through whom they purchased the property insurance for the building, and building losses are covered, but it turns out the contents of the building were not covered. Now what is the small business to do? If the small business had business contents insurance, they might have gotten reimbursed for the loss of the equipment. But without this coverage, the business is left in a tough position, because it does not have the capital available to lease new equipment or purchase it outright.

Moreover, it is difficult for the business to get approved for new leases because of the financial position they now find themselves in. The business could try to apply for unsecured loans instant decision to use toward new equipment. But the bottom line is the business left itself open to a large risk by not carrying business contents insurance. And it is an unfortunate situation, since it could very well force the small business to close.

In conclusion, business contents insurance may help protect the business against undue risk of loss from an unforeseen circumstance such as a fire or flood. If the business suffers such a loss and does not have adequate coverage, sometimes applying for an unsecured loan can provide quick capital to recover.