General business insurance can mean a few different things, so it's important to make sure your business property is covered. You need to make sure commercial property insurance is included in your policy or purchase separate coverage.
What Is General Business Insurance?
General business insurance might refer to two different things. One type of policy is a commercial general liability policy. Even though it has general in the name, it doesn't cover everything — only liability. The general means that it covers different types of harm you might cause to others, such as physical injuries or property damage. But it doesn't extend to losses to your own business property.
You may also have the option to buy a business owners policy, or some other type of policy marketed as general business coverage. These types of policies include multiple types of coverage — one of which is often commercial property insurance. You'll need to read the policy to see what's covered and what the limits are.
What About Commercial Auto Insurance?
If you leave your tools and equipment in a truck, you might expect your commercial auto insurance to cover them. This may be the case, but there are sometimes exclusions on the type of property that's covered, how much coverage you have, and whether the items were in your vehicle temporarily or permanently. In addition, there may be times when your property is outside of your vehicle and not covered — such as theft or damage while at a job site.
Check Your Limits And Coverages
One of the most important things to understand about general business insurance policies is that they're cookie-cutter by design. That means they may not fully cover you if you don't customize them. If you have expensive tools and equipment, the property limits may not be high enough, or the policy may exclude specific items from coverage. These warnings can also apply when you're buying a mass-market commercial property insurance policy.
When buying coverage, create an inventory list of your property and values. And make sure you can match everything up to the policy you're considering.