Your business has a lot of physical assets. Your building and its contents. Any outdoor fixtures like signs or fences. Stuff that can be damaged – which means you need to protect it. That’s why commercial property insurance (also referred to as business property insurance) is a smart investment to make for your business.
Management Liability Insurance
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Commercial property insurance plans pay for losses based on the replacement cost of the item or its actual cash value.
Replacement cost (RC) is the amount necessary to repair, replace or rebuild property on the same premises, with comparable materials and quality, without deducting any amount for depreciation.
Actual cash value (ACV) is the cost to replace it with new property of similar style and quality, minus depreciation.
Typically, premiums for policies covering property insured on an ACV basis are lower because the limits only include the depreciated value. This amount might not be enough if you elect to insure the property on a RC basis.