MONDAY, JULY 10, 2023
Some business owners have unique or expanded risks on their properties. Your goal should be to have customized business insurance to address this.
Specifically, look at the commercial property insurance you have. Does it provide protection for all your property’s assets? For example, many businesses in the oil and gas industry have a complex number of concerns. Your policy should address them all.
Determine What to Insure
Commercial property insurance should cover all your risks. This includes any areas of real estate and structural systems that you own or lease.
For oil and gas properties, this may include both structures above and below ground. It should include onsite storage systems, shelving components, and other equipment stored both inside and outside. Identify all the assets around your business. It will likely take a lot of attention to detail and an appraisal of information. This might be difficult at first.
How to Put a Value on Structures
Oil and gas properties have a unique structural makeup. They have high-risk assets on their property. The amount of inventory often changes as well. To determine how much business insurance you need, focus on a few key features.
- What would it take to replace the structural components of your business in the event of a total loss? Work with a local builder or contractor to determine this.
- What is the most amount of inventory you carry at any given time? This should be the amount of coverage you need. Maximum coverage can help even in cases of minimum inventory.
- Look beyond fixtures. What is the value of computer systems, security systems, furnishings, and other equipment? Everything, from the light bulbs to the floorboards, should have coverage. Work with your insurer to set a value of these items.
Your commercial property insurance needs to account for all of these components. Be sure the upper level of how much you purchase is specific to rebuilding in a total loss situation. It is not the market value of the property. Rather, it is the cost to rebuild. This is typically higher due to the construction costs associated with your space.
Key to remember here is that having ample insurance is essential. Risks tend to be higher. If an accident happens, it could have catastrophic outcomes. Many oil and gas companies focus on liability insurance. However, commercial property insurance is just as valuable if not more so. Work with your business insurance agent to address the special features of your property. Then, be sure you have ample protection to give you peace of mind.
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