Make sure you have the right insurance coverage to protect your company’s rented space.
As a business owner, you know that your commercial property insurance is designed to cover damages to your business’s building and property. However, if you rent the space that your business operates out of, you may be wondering if you are responsible for any physical damages to the building. For instance, if a fire broke out and burned down your building, would you have to file an insurance claim? Here’s what you need to know about commercial property insurance and rental property.
- 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 building or their portion of the building. 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.
- Who is Really Covered?
Most landlords will lay out their tenants’ insurance requirements in the lease agreement. So, your landlord will probably 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 leased buildings. Do you have further questions about your business insurance? If so, then contact the experts at Gant Insurance Agency. We are ready to get you the coverage that you need today.