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Property insurance protects small-business owners from losses due to damage to physical space or equipment and as a result of theft or fire. In addition to a physical building, business property can include any of the following, owned or leased:
You can buy either actual cash value or replacement cost insurance. Actual cash value insurance reimburses you for the value of lost, damaged, or stolen goods after depreciation is considered. Replacement cost insurance reimburses you the amount it would take to replace, rebuild, or repair damages with materials of similar kind and quality, without deducting for depreciation.
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