What to Know About Business Insurance and Rental Property

Does commercial property insurance cover rental spaces?smiling small business owner

While every business faces different risks that require unique insurance solutions, there are certain types of coverage that are considered universal.  For instance, if your business is operating out of a physical location, then you need to secure commercial property insurance to protect your building.  But is this true when you are only renting your business’s space?  Here’s what you need to know.

  • Commercial Property Insurance

Commercial property insurance is coverage that protects a company from losses related to physical damages to their building and other property such as equipment, supplies, inventory, furniture, and so on.  Business owners who own the building that they operate out of need to secure comprehensive commercial property insurance to protect the structure, contents, and other assets that their company owns.

  • Insurance for Leased Buildings

Many businesses do not own the building that they operate out of.  In this case, they lease a building or a portion of a building from a landlord.  In most cases, tenants are responsible for securing commercial property insurance to protect their rented space.  This includes important things like structural walls and fixtures.  Of course, their insurance should also provide coverage for their equipment, supplies, inventory, furniture, and other assets.

Landlords will typically lay out their tenants’ insurance requirements in the lease agreement.  So, your landlord will tell you the minimum amount of commercial property insurance that you need to secure in order to rent from them.  Please note that when you secure commercial property insurance on a rented property, you are not covering yourself.  Rather, you are protecting your landlord’s investment.  If you want financial protection for your business, then you should speak to your insurance provider and secure a separate policy to cover your losses.

This is what you need to know about commercial property insurance and rented spaces.  Do you have more questions about your business’s insurance needs?  If so, then contact the experts at Miller Carlisle Insurance Services.  We are ready to assist you with your commercial coverage needs today.