New York Business Property Insurance Concerns

Property insurance is an important component for your business. It protects a business from loss to the structure as well as the contents of the building. This can change as you purchase more equipment or anything that increases value to the organization. Property coverage needs to be reviewed to determine if appropriate coverage is in place. One thing that is certain is that New York business insurance can help put the business back where it was after a disaster strikes.


All too often business owners do not realize how valuable having an adequate amount of coverage truly is. When considering business property insurance, consider the following example to eliminate some of the most common misunderstandings concerning insufficient insurance amounts or exclusions in the policy limit coverage:


Obtain sufficient coverage and review coverage limits annually


Business property insurance coverage limits should be in an amount sufficient to rebuild the structure and replace fixtures at current replacement prices. This is not the same as a property tax valuation (or valuation for real estate marketing purposes). For example, if you own a warehouse you might call a friend who does contracting on the side and get an estimated price for building an additional space for holding increased inventory due to overwhelming demand.


While you may be able to estimate a projection of needed additional coverage amounts now, after a disaster, when the cost of goods and supplies generally rises, (mainly because supplies will be short) and the cost of labor by an approved contractor would be greater, your coverage may not stretch. The idea is to simply overestimate if necessary.


You really should annually review any and all of the changes to the structure, including:


  • Upgrades


  • New fixtures


  • Carpeting


  • Safety and fire prevention


  • Office furniture, or


  • Anything that has an effect on the valuation of the physical structure


Talk to your New York business insurance agent and adjust your coverage limits appropriately.