How To Calculate The Amount Of Commercial Insurance You Need To Purchase

When it comes to protecting your investment in your business, one of the essentials is commercial insurance. Commercial insurance helps you replace covered items in the event of events such as theft or fire. Although most people know they need commercial insurance, they do not know exactly how much they need to purchase to adequately protect themselves.

Take Inventory

Before purchasing commercial insurance, you need to take inventory of all of the business’ assets. This inventory should also include a figure for the building as well as the property. If you are leasing or renting a building or space in a plaza, you should take into account the value of the building as a whole. Your contents coverage is normally separate from the coverage on the building. To get the right amount of coverage for contents, take the total value of your belongings inside the building and round up to the nearest round figure offered by the insurance provider.

Building Coverage

If you are unable to get an exact figure on the value of the building, try to get an estimate based on the current cost to build in your area. Buy the next round figure closest to the current cost to replace a building comprised of similar materials and considering the current cost of labor in the area where the business is located. Always be certain about your figures to protect yourself in the event of a covered loss. For more information on coverage amounts, contact Denver, CO, AFI Insurance.

Make sure you get the correct amount of coverage by following these tips for calculating the correct amount of commercial insurance to purchase and don’t forget to call or stop by Denver, CO, AFI Insurance to obtain the insurance products you need to protect your investment.