Why You Need Commercial Property Insurance
Have you decided you don’t need commercial property insurance? Think again.
You’ve devoted energy, effort, and hundreds of hours to make your company one of the best in the industry.
Business is thriving, and things can only get better.
One night, a call wakes you up from sleep, informing you that your business was in the bulls-eye of the hurricane and has been destroyed.
Everything you’ve built came tumbling down before your very eyes. With no insurance, chances of recovery are very slim.
You don’t want scenarios like this to play out, which is why you need commercial property insurance today.
Here are some other reasons.
1. Protects Against Natural Disasters
Natural disasters are just what they are – unpreventable. It doesn’t matter how high-grade the quality of the building materials is. Carry out all the precautions in the world. A hurricane, earthquake, wildfire, or other natural disaster can wreak havoc on the building and everything inside in a twinkle of an eye.
You don’t want that to happen to your business. But if it does, you want a safe landing net that ensures your business is up and running again in minimal time. Unfortunately, many business owners had failed to protect themselves with commercial property insurance, finding themselves high and dry when disaster struck.
2. Additional Line of Credit
Insuring your commercial property isn’t exactly a line of credit. However, you can leverage your property insurance to replace your damaged property as well as the inventory in it.
Say a fire broke out and razed the entire building and everything in it to the ground? Without insurance, you’d have to dip into the company’s account to start all over again.
By paying a monthly, yearly, or quarterly premium, you get access to insurance coverage that ensures profit goes into growing the business.
3. Better for Long-term Planning
If you intend to run a business for long, getting commercial property insurance is a no-brainer. Companies don’t often know the number of losses they’ll encounter in a year.
If you have to cough up money rebuilding your property or replacing equipment that runs into millions of dollars, it can be difficult, if not impossible, to make long-term growth plans.
Alternatively, you can take the worry and risk out of the equation and invest in commercial property insurance.
4. Commercial Property Insurance is Tax Deductible
You might not know that commercial property insurance is tax-deductible. You’re not alone – a lot of people don’t. What does this mean, and how does it benefit you?
According to the IRS, all the necessary and ordinary costs of insurance are considered business expenses. Commercial property insurance is common and accepted no matter what business you do. Therefore, you can file the insurance premium you pay as a business expense and deduct it from your tax.
This tax deduction allows you to deduct the premium you pay for landlord liability insurance. You can also remove the costs that cover the health and compensation of workers and the protection of your equipment, documents, furniture, computers, tools, etc.
However, you might not be able to write off some premiums, which is why you should work with a professional.
Protect Your Investment Today
Without a doubt, it is highly beneficial to protect yourself with commercial property insurance. If you have questions on how to go about getting commercial property insurance that suits your need, get in touch with us by scheduling a consultation.