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The Master Policy and Business Property

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.

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