When you’re running a business in Texas, protecting your investment isn’t just smart, it’s essential. Between unpredictable weather, property damage, and the ever-present risk of theft or fire, the last thing you want is to be caught off guard when something goes wrong.
One type of protection that gets talked about a lot, especially by lenders, is something called Business Hazard Insurance. It sounds intense, but let’s break it down and keep it simple.
What Is Business Hazard Insurance?
In short, it’s another name for Commercial Property Insurance.
That might sound confusing, but here’s the deal: Business hazard insurance is not its own policy. It’s the part of your overall coverage that protects your physical business assets (your building, your inventory, and your equipment).
Think of it as your safety net for anything you can physically touch. It doesn’t deal with lawsuits or injuries, but it does cover things like fire, storms, or theft.
What Does It Cover?
If your business property is damaged by a covered event such as a fire, hailstorm, or burst pipe, this coverage can help pay to repair or replace:
- The Building: If you own the property, this includes the structure and any permanent fixtures.
- Business Personal Property: This includes your inventory, tools, computers, furniture, and equipment (basically, whatever you use to keep your business running).
It may also cover:
- Debris Removal: After a covered loss, like a collapsed roof or fire, cleanup costs can add up quickly.
- Lost Income: Many policies include business interruption coverage. This helps cover lost income and fixed expenses, such as payroll or rent, while you recover.
Why It Matters in Texas
Texas is known for unpredictable and often extreme weather.
Whether you’re dealing with hail in Dallas, hurricanes along the Gulf Coast, or an ice storm in Central Texas, the physical risk to your property is real. That’s why this coverage is so important. It typically protects against:
- Windstorms and hail
- Fire and smoke
- Lightning strikes
- Vandalism and theft
- Water damage from burst pipes or sprinkler systems
- Damage caused by civil unrest
What Isn’t Covered?
Understanding what your policy excludes is just as important as knowing what it covers. Business hazard insurance usually does not cover:
- Flooding or Earthquakes: These require separate policies. Flood coverage is often provided through the National Flood Insurance Program.
- Injuries or Lawsuits: General liability insurance handles those situations.
- Equipment Breakdown: If machinery stops working due to internal failure or wear and tear, this typically falls under Equipment Breakdown Insurance.
- Professional Errors: Mistakes in service or advice are covered under Professional Liability (Errors & Omissions) Insurance.
- Employee Theft: This risk is usually handled by a separate crime insurance or fidelity bond.
How Much Does It Cost?
The cost of business hazard insurance varies based on several factors:
- Location: Businesses near the coast or in storm-prone areas may face higher premiums.
- Construction Materials: Buildings made of fire-resistant materials often cost less to insure than wood-frame structures.
- Property Value: The more your building and contents are worth, the more coverage you’ll need, which raises the premium.
- Loan Requirements: If you have a business loan, your lender may require specific coverage levels, usually based on a percentage of the property’s value.
Many small businesses pay between $30 and $60 per month for the commercial property portion of a Business Owner’s Policy. Higher-value properties or higher-risk areas will usually cost more.
Protecting Your Business with Rollo Insurance
No one can predict when disaster will strike, but you can make sure your business is prepared. Business hazard insurance gives you the financial support to rebuild and recover without starting from scratch.
At Rollo Insurance, we help Texas business owners find the right balance of protection. If you’re unsure about what your current policy covers or you’re just getting started, we’re here to walk you through it clearly, honestly, and without confusing insurance jargon.
Contact us today for a consultation. Let’s make sure your business is ready for whatever comes next.
Ready to get started?
Find Your Local Office
