What is Hazard Insurance?
Also referred to as "Business Property Insurance" or "Commercial Property Insurance." Business property insurance works similarly to homeowner's hazard insurance. It covers structural damage from theft, fire, wind, power outages, explosions, weather-related natural disasters such as storms, snow, or lightning, and vandalism or rioting. You can also add coverage for specific hazards relating to your business, such as earthquakes, sewer and water backups, terrorist attacks, equipment breakdown from user error, and flood insurance. Hazard insurance not only helps startups qualify for business loans, but it also increases investor confidence in your business. As you seek funds for growth, showing proof that your assets are protected reassures both the Small Business Association (SBA) and potential investors. The cost of your policy will depend on your coverage amounts, required coverage, and other factors that affect the policy.
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