We’ve already broken down the Commercial General Liability portion of our Master Policy, now it’s time to get into just what Business Property coverage can mean for all our artist and craft artist friends out there. We know you’ve got questions, and we’re right here with solid answers. You can also learn more about the Master Policy in our FAQ section.
First off, know that our Master Policy offers you business property insurance for things that are often excluded by your homeowner policy. For those who have a home-based studio and creative space, the Master Policy protects your equipment, supplies and finished work against any risk that isn’t explicitly excluded. Thanks to the inland marine provisions being written right in, coverage includes both in-studio damage and losses sustained while out on the road. Here’s what your policy looks like.
Business Property Policy
Like any comprehensive protection against property damage, your Business Property (BP) coverage is pretty straightforward.
What’s Covered:
Direct physical loss caused by a covered peril. This could include:
damage to your property (both established and acquired during policy period)
damage to the property of someone in your care, custody, or control
damage to the property of individuals listed in your policy
Additional coverage includes:
Debris demolition, removal, and clearing
Cleanup, removal and extraction of pollutants from land and water
What’s Excluded:
Some specific categories of property:
Buildings and land
Contraband
Money and securities
Landscaping and/or crops
Underground property
Key causes of property damage:
Wear, tear or gradual deterioration
Unexplained disappearance
Inventory shortage
Employee dishonesty
Damage resulting from the order of a civil authority
Nuclear hazards or explosions
Sewer backup
War, military action, or terrorism
Mold, mildew, and natural breakdown
Electrical issues (other than lightning)
Certain types of explosion or rupture
Loss of market, loss of use
Mechanical breakdown
Changes/extremes in temperature/humidity
Depending on the state(s) you live and work in, your policy might be different, and other exclusions may apply–contact your Insurance for Artists agent for any unique-to-you details.
What To Do In the Case of Damage or Loss
Your business policy is here to ensure that when a loss or covered damaging event happens, you can recoup some value and keep your doors open. In the event that you do deal with a loss of property related to your business, it’s always best to act quickly. You’ll want to get in touch with your Insurance for Artists agent, who can help to rectify the situation. It’s also a good idea to take precautions to prevent additional damage and to share with us proof of the loss and any records of expenses you incurred.
Valuation and Payment
Under your Master Policy, business property losses are most often handled on an actual cash value basis. This means that you’re paid the equivalent of the items’ actual cash value in today’s market, less your deductible amount. You are then entitled to receive recompense either as a payment for the value of the loss, or payment for the repair or replacement of the damaged property. If the property belonged to another person who is covered by your policy, the payment can be made to either of you. Since you’re the expert on the equipment and stock you use everyday in your business, you have every right to hire an appraiser if you feel that we get the valuation wrong. We want coverage to be fair, from every angle.
Checking Lists, Keeping You Safe
At Insurance for Artists by Zinc, we stand behind our Master Policy and its wide net of protection. While we agree that this fact sheet was no fun or funky dive into scenarios that show the real-life value of our Master Policy, sometimes it’s just as important to know what’s behind our promises of protection. Another good thing? You’re able to choose the coverage limits that best suit your needs. But you’re never left on your own–there’s always an Insurance for Artists agent just a phone call away. If you’re an artist or craftsperson and you’re thinking, “Hey, I might need business property insurance,” then please don’t hesitate–get in touch with us today
This blog post does not provide insurance advice and is intended for information purposes only. It is not a substitute for professional insurance advice from a licensed representative. Never ignore professional insurance advice because of something you have read in this blog post. Contact your licensed representative if you have any questions about your insurance policy.