To protect your business against such perils as fire or theft you need to obtain Property Insurance for your operation. If you have a home-based business, you may think that your Homeowners Insurance policy provides the property coverage you need, but that may not be the case. Most Homeowners policies do not cover structures from which business is conducted, or restrict it to the area of the home that is solely used as the dwelling area.
Business Insurance covers the business for: buildings and other assets that may be lost or damaged, for property like furnishings, raw materials used in manufacturing, inventory, office machines, computer systems, and other company assets. In some situations, it will also provide money necessary to keep a business in operation while repairs are being made after a covered loss. This is known as business interruption insurance.
Property Insurance may also include coverage that compensates the company for equipment failures, removal of all sorts of debris after a fire or flood, water damage, and other losses. One caution worth observing - some policies will not cover certain catastrophic events such as earthquakes, floods, terrorist attacks, or other occurrences considered 'acts of God' without specific endorsements on the policy. If your business is located in a hurricane or earthquake prone area make sure you get the proper riders for your situation.