If you are up on your insurance knowledge, you might know that hazard insurance is an integral part of protecting your home from sources of structural damage like fire and theft. But what about protecting your business? Is there such a thing as hazard insurance for businesses?
Yes! Just like hazard insurance protects the structure of the building you live in, there is also a hazard policy that protects the structure of the building your business lives in. Sometimes referred to as business property insurance or commercial property insurance, business hazard insurance safeguards against structural damage from many of the same sources home insurance protects against.1
What is covered by business hazard insurance?
Commercial buildings are subject to the same hazards as homes, so business hazard insurance is designed to protect against many of them. Fire, theft, lightning, explosions, and damage caused by vehicles are all commonly covered by both kinds of hazard insurance. Business hazard insurance also protects against damages that might be more common to commercial spaces such as water damage from sprinkler systems.1
Do you need business hazard insurance for an SBA loan?
Are you building your business from the ground up? Buying hazard insurance for your small business may be even more important than you think. If you are seeking an SBA loan for your burgeoning enterprise, you will need proof that you have a hazard insurance policy protecting it. As is the case with most lenders, the Small Business Administration will want to verify that the assets they are funding are protected.2
Do home-based businesses need hazard insurance?
What if your home and business are in the same place? Your standard homeowners insurance policy will contain hazard insurance to protect its structure against a variety of hazards. This standard coverage will likely even protect about $2,500 worth of business property. But always read your policy to make sure. If your home business is more physical capital-intensive, then you might need to buy additional coverage.1
How much does business hazard insurance cost?
It depends on the kind of business you’re running. The more valuable your property, the more expensive your hazard insurance will be, and vice versa. For example, a manufacturing facility with millions of dollars' worth of equipment will pay more for hazard coverage than a smoothie shop. It is important to continually reassess the value of your property as your business grows so your coverage continues to protect all of it.1
How to get business hazard insurance
Nationwide offers business insurance plans to fit your company’s needs. Call 1-888-490-1549 to get a free quote from Nationwide or find an independent agent near you today and learn how the right insurance can help protect your business.