When a business is damaged, it can be more than just a headache for its owner. Commercial property damage can affect someone’s livelihood and massively affect their earnings. However, there are resources available, and business owners can obtain insurance.
1. Navigating a Commercial General Liability Policy
A general liability policy provides basic liability coverage, and it is widely available. The Insurance Services Office writes the standard policy that many companies use. Usually, it is provided as a convenient catch-all, as it covers most basic damages.
Furthermore, most insurance companies prefer avoiding the risk involved with writing custom policies. Consequently, many provisions in ISO forms are well known in the judicial system. Since they have previous interpretations, they are more predictable than proprietary forms.
Coverage A covers bodily injury and property damage. Even so, a physical injury must occur to tangible property, resulting in loss of use. Therefore, your coverage is limited to real property if filing a claim with a CGL policy.
Unfortunately, damages to electronic data are not included in most CGL policies. As such, it would be wise to exercise caution if you are around sensitive electronics. However, if a contractor damages a vital work machine, you can sue them to compensate for any loss of use.
2. Understanding Commercial Auto Liability Coverage
Property damage can involve an automobile, especially for businesses. Luckily, a commercial auto liability policy would cover these instances. If the policyholder’s vehicle is damaged, these policies will provide compensation.
An ISO business auto policy usually helps against tangible property damages. Likewise, auto liability claims usually require physical injuries to the property to qualify. You can then use the funds to hire the best restoration contractors in Denver or your particular locale.
3. Standalone Commercial Property Policies
Commercial property insurance can be helpful if a building is injured or if goods are stolen. Thus, business owners may file claims following theft, vandalism, riots, or unexpected disasters. Sometimes, these policies cover damages that result from floods and earthquakes. Nonetheless, you should check your policy’s details first to be certain.
4. Disaster Loans and Other Types of Assistance
The Small Business Administration often offers loans to help businesses after disasters. Even if you have not purchased an insurance policy, these can be helpful. For example, they may issue low-interest financing to help purchase physical goods.
Further, they have designed options to assist with mitigation efforts. Following a declaration of disaster, these funds cover small business operating expenses. Similarly, an economic injury disaster loan may provide financial assistance in some cases. If you are deployed in the military, the SBA also offers military reservist loans.
Typically, a business owner must be in an area with a declared disaster. Afterwards, they must apply for the loan using the provided form. Once the form has arrived, the SBA will process it, so check your status online.
5. Small Business Administration Emergency Relief from the IRS
Special tax provisions are available to facilitate disaster recovery. If a property has been destroyed, these provisions may provide additional filing time. By delaying when taxes are due, businesses can utilize extra funds to pay for repairs.
Consequently, they may be less affected by the interruptions to their business’s operations. In addition, the IRS may process refunds faster for companies in disaster zones. Moreover, a business owner may qualify for past-year losses. Since they can deduct these losses, it can lower what they owe this year.
Responding to Property Damage at a Commercial Property
Property damage is frequently injurious to business owners, causing major disruption. However, there are programs available that are designed to help. Using them can ameliorate many of the economic disadvantages caused by property damage.
Author: Raynne Morriss
Rayanne Morriss is currently working towards her BA from Oregon State University. She loves to write, read, travel, and paint. She enjoys finding new coffee shops with friends and expanding her cooking skills with her husband.