When it comes to property and casualty coverage for your business, you have two basic choices: all-risks coverage and named peril coverage. Named peril coverage is like your homeowner’s insurance policy in that damages and liability caused by certain named disasters will be covered and all other damages and liabilities won’t be. All-risks coverage will take care of the damages and liabilities caused by anything.

Of course, you want all-risks coverage. But remember no insurance policy comes without exclusions. Some exclusions will be written in based on the nature of your business or the geographic location in which you do business. If your area is prone to ice storms or explosions are common due to the chemicals you work with, these will most likely be exclusions to your all-coverage policy. You still need coverage for these things, however, and will need to purchase add-on coverage that specifically covers these events.

The next thing you want to make sure you have in terms of property and casualty insurance for your business is replacement cost insurance. This will pay the full bill to replace your covered property, even if the current price of the equipment far exceeds that of your own purchasing price years ago. This means that inflation won’t hurt you in the claims department, as long as the full cost of replacement isn’t higher than the policy coverage limits.

Do the math and read the fine print to make sure that your business is fully covered.