Small business owners have a lot of irons in the fire at any given time. There are many important business matters on your plate and it can get overwhelming quite fast. Insurance is one of the many things that often gets the standard business owners package and doesn’t always get a closer second look. Unfortunately, that may place you at a disadvantage when it comes to replacing expensive signage, awnings, and other things considered betterments.
Betterment and Improvements Coverage Basics
Most businesses operate as tenants, meaning you rent the space you’re in, have insurance policies that cover damage to inventory and structures within the building. But few have policies that extend beyond the doors and cover things outside the building that represent the building like awnings and signs not only let people know that your business exists, but also let them know, in many cases, where the entrance is.
They also happen to be quite costly to replace. Without them, though, people will begin to believe you’ve gone out of business, or that your business is not doing well, which can lead to even further loss of business – costing you precious income in the meantime.
Since these items are not permanently attached to your building, they are not covered by your business owner policy. That’s now where the potential problems end, though. They are also more vulnerable because they aren’t attached to your building permanently to things like wind, lightning, and being damaged by people or vehicles.
That’s why it’s so important to have betterment and improvements coverage – to help cover these items when they are damaged by forced beyond your control so your business can get them back up and running quickly.
Does Your Business Need this Type of Coverage?
Truthfully speaking, any business that depends on walk or drive-by traffic needs this type of coverage. Something as simple as a fast food restaurant forgetting to turn on exterior lights at night can lead to a significant slowdown of business for the evening. Most signs take several days, if not weeks to replace, with insurance protection.
Small businesses, however, do not operate with a large amount of “petty cash” on hand to replace things as expensive as signs and awnings. This means that when accidents and damage occurs, the losses stand to be far more devastating.
The bottom line is that unless you plan to have enough cash on hand to replace damaged or destroyed improvements outside the building, you should carefully consider the benefit betterment and improvements coverage poses for your business.
Most small business owners simply can’t stand to be without it. Consult with your small business insurance agent today to see if this is a good move for your business or if you’re one of the lucky few who has this type of coverage as part of your current policy.
