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Plan for the unexpected with business insurance

Do you rent office space for your business? If your answer is yes, a business insurance policy from Insurance Services of New Mexico is a must.

While landlords should carry insurance on the physical building, business insurance covers your business property and can help you operate “business as usual” in the event of business interruption. A standard business owners policy (BOP) will typically include property, liability and business interruption insurance.

Property Coverage

Business property coverage may reimburse you if your belongings are damaged during a covered loss like theft or a fire.

For example, in instance of a fire, your landlord’s policy would cover damage to the building itself, while your insurance provider could step in to cover damaged computers, furniture, phone systems or employees' belongings.

If your office was the target of a break-in, belongings that are stolen or damaged would typically be covered by your BOP as well. The building owner's insurance would only cover damage to the physical building, such as broken windows, doors, or locks.

Check your lease, however, to see if you might be responsible for any building damage. Some landlords require you to be responsible for building glass or any modifications you have done to the inside of your space, for example.

Liability Coverage

Liability coverage is the traditional "slip and fall" insurance. If a customer tripped and broke her ankle in your office, the liability coverage on your BOP could reimburse your customer for medical bills.

Liability coverage could also pay for legal costs or damages from a lawsuit if the injury was proven to be the result of your negligence.

Your liability insurance may also reimburse you if you or your employees damage the space you're renting and are found financially responsible for repairs.

Business Interruption Coverage

Business interruption coverage helps pay for lost income and additional expenses you may incur if your business is affected by a covered risk.

Suppose a fire seriously damages your rented office and you need to temporarily relocate. However, some key clients don't follow you to your temporary office and, therefore, your profits drop.

With business interruption coverage, your policy would typically reimburse your business for lost income after you deduct ongoing business expenses you would have had to pay anyway.

Depending on your policy, the "extra expense" portion of your business interruption coverage could also help you recoup costs like additional rent, plus the difference between your utility costs at your new office if they are higher.

Consider Additional Coverage

The basic coverages in your BOP are a good start to helping protect your business. Depending on the kind of business you run, you might consider adding additional coverages to your policy. An Insurance Services of New Mexico agent can suggest coverage to help protect your business and its specific needs.

Trying to decide what insurance you need before you sign that office lease? Let an experienced Insurance Services of New Mexico agent help you decide what will work best for your business.


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