Knowing your niche and understanding every part of it will save you time and money. Here is a useful guide that can help you knowing should you buy property damage insurance.
For example, if you are in a client’s house and spill something on the carpet, then any claim against you could be covered by having property damage insurance. There where cases, where painter spill a few drops of paint on a carpet but the carpet was a piece from Harrods and the claim, was settled for over $130 000! So property damage insurance covers explicitly accidental damage to property.
What professions need property damage insurance?
Property damage can be significant in a variety of professions. Smallest mistakes can lead to big claims so if you’re a waiter or construction worker; many jobs have a requirement to provide the evidence of liability insurance as part of the qualification process. So it means that before you start a job, especially on government contracts you will have to include liability insurance before you take further participation in the role.
How property damage insurance work?
When you buy property insurance, the insurance company can provide the coverage for computers, supplies, inventory, offices and other property against damage. Sometimes, property insurance covers specific events outlined in your policy. Common covered events include:
- Acts of vandalism
- Weather accidents
Example – let’s say a fire burn down a non-profit computer company. The company lost thousands of dollars worth of equipment. Besides, they must repair the building, furniture, etc. A property Insurance policy covers all of these expenses. As a small business owner, you might qualify for a lower Property Insurance rate if you purchase this policy together with General Liability Insurance. This insurance bundle is called a Business Owner’s Policy.
Property damage insurance vs. Property Damage liability and differences
Property Insurance covers the stuff your business owns or replace damaged items after a covered event. Liability Insurance Covers the expenses that result when things you do cost someone money. Lawsuits are standard, so you go to trial or settle the dispute out of court.
How do I Buy property damage insurance?
There is a small chance that you will find property damage insurance as a separate cover then public liability insurance. Your public liability insurance will also cover accidental injuries to both your clients and third parties, which can be just as likely as damage to property.
How is Property Damage Liability Structured?
Your limit is a dollar amount that represents the maximum amount of property damage your insurance policy will cover. It means that if you have $40,000 coverage limit, your policy will cover that amount and you will cover the rest.
The benefits of additional property damage liability Coverage:
Purchasing a higher limit of property injury liability insurance will protect your future earnings and established assets. If you accidentally go over your limit, the liability coverage may not be enough to cover the total amount of damage.