Try out these suggestions to secure affordable property coverage for your business.
As a business owner, you know how important it is to secure the right commercial property insurance in Astoria, New York. This type of business insurance will protect your business’s building along with the equipment, inventory, supplies, and other property you house within it. Unfortunately, this type of coverage can end up being quite pricey if you are not careful. Here are some of the suggestions you should try to find the right commercial property insurance to meet your needs and your budget.
1) Understand the Difference Between Replacement-Value and Actual Cash-Value Coverage
When securing commercial property insurance, you can choose to cover your property’s replacement value or its actual cash value. The coverage option you choose will affect what you end up paying in premiums. Here’s what each coverage option will mean for you.
- Replacement-Value Coverage: When you secure this type of coverage, your insurer will compensate you with enough money to replace insured items with brand new versions. Because you are receiving coverage for brand new items, this option usually means higher premium payments. This coverage is most recommended for businesses that use expensive specialty equipment and high-tech gear that’s value depreciates quickly.
- Actual Cash-Value Coverage: This type of coverage will offer compensation for the depreciated value of the items that are damaged or stolen during a claims event. Because this coverage option takes depreciation into account, choosing this option will mean lower premium payments. If you can easily replace your business’s equipment and property, then this coverage option might be right for your company.
2) Understand the Value of Your Belongings
When you determine the value of your belongings, it’s important that you do not just consider the literal value of the items. For instance, say that you are trying to place a value on your laptop. While it might only be $1,000 to buy a new laptop, you are not considering the cost of losing all the vital information stored on your current laptop. The value of your items shouldn’t always be about the replacement value; intangibles like sentiment, convenience, and information should also be accounted for. While securing coverage to account for these intangibles might raise your premiums, this will ensure that you are fully compensated in the event of a claims incident.
3) Manage Your Risks
Businesses can reduce their commercial property insurance expenses by taking steps to reduce their risk. Oftentimes insurance providers will offer policyholders discounts for implementing risk management strategies. For instance, you could save by installing security cameras, installing deadbolts and heavy-duty locks, updating your electrical systems to reduce the risk of fire, and so on.
These are some of the things that you should do to save on your commercial property insurance in Astoria, New York. Do you have further questions regarding your business’s coverage needs? Then contact the experts at 01 Insurance. We are ready to assist you with all your coverage needs today.