Property Insurance Coverage

The Different Types of Coverage

Policies vary according to the kind of property that they will insure, and the events from which you will be protected.

Your policy can cover just physical equipment: buildings, furniture, inventory, machines, and supplies. Or, you can extend coverage to include lost cash and important documents.

The events covered by your policy are called perils or causes of loss, and can include natural disasters/weather, fire, theft, malicious damage (such as vandalism or industrial sabotage), riots, and explosions.

Expanding your Coverage

If you want additional coverage, you can arrange for riders, or additional clauses that expand the coverage for an existing policy. Examples of available riders are legal fees, personal valuables, and accidental damage.

You can also opt to get an all-risk policy, rather that an all-perils policy. All-perils policies will only cover losses from events specifically stated in the contract. An all-risk policy is the opposite: it will cover all events except those stated in the policy. While this commands a higher premium, it is very important for businesses that are vulnerable to a wide variety of accidents or emergencies.