Many businesses are not adequately insured at current values (Insurance-to-value is a critical element of any well-constructed property insurance program. Keeping values up to date can protect your business by providing you with the coverage you need should a major loss occur). According to recent studies, an estimated 75 percent of commercial businesses are underinsured by an average of 40 percent or more. Underinsurance can greatly impair, or even bankrupt, a business trying to recover from a major loss.

Rebuilding yesterday’s buildings at today’s prices is a challenge. Buildings constructed just two years ago cannot be rebuilt at anywhere near the same cost. Your agent from Alta Vista Insurance Agency should make sure that your California Business Insurance is keeping pace with today’s rapidly escalating construction costs.

In recent years, we’ve experienced devastating weather events at home and worldwide. In 2011 alone, the U.S. experienced nearly $38 billion in insured losses, much of it from unprecedented and unexpected significant weather-related events. Some decimated entire communities. And, experts predict that severe weather will likely continue. It is essential that you understand the importance of protecting your business and employees by keeping your insurance coverage up to date.
    
 Let’s start with some basics about how insurance works. Insurance protects people and companies against major financial losses that occur because of damage or loss of property. Insurance companies determine premiums by taking into account the risks associated with the business, the amount of coverage they need to be fully protected, their past history and statistics that predict what percentage of businesses will suffer a loss or file a claim. The amount of property insurance coverage is based on the cost to rebuild and restore your business, not market value.

                                                                                                   image from http://www.ipnc2008.org/why-your-business-needs-business-insurance.html