What You Need to Know About Business Renters Insurance
The coverage that your business renters insurance provides will generally be specific to your operations and the space you’re renting. Business renters insurance can offer the following coverage:
The damage you or an employee inflicts on the space
Any damage inflicted by a third party
Damage and theft to office equipment, inventory, or property stored within the space
Any damage resulting from disasters like fire and other unforeseen events
Accidents and injuries within the space that result in business lawsuits
However, not all standard business renters insurance will cover all of these instances. Renters insurance is typically a customized policy or a combination of specific policies.
Additional coverage that you can add to your business renters insurance:
Product Liability Insurance
Product liability insurance covers the cost of compensation claims if someone is injured or their property gets damaged after using the product your business has sold.
Professional Liability Insurance
If someone trips and gets injured inside your property, professional liability coverage can pay for their medical bills.
Liability coverage will also pay for the legal costs and damage resulting from any lawsuit against you.
Equipment Breakdown insurance
This is a form of commercial insurance that covers any repair or replacement of damaged equipment or machinery. This policy will cover company’s computers, electrical systems, production machinery, and other equipment from accidental malfunctions.
Commercial Auto Insurance
Commercial Auto Insurance covers vehicles that are owned by businesses for its operations. It covers repair costs, medical costs for bodily injuries, legal defense costs, vandalism, and collision coverage.
Note: You won’t be the only party to have insurance on the building space when you’re renting. Your landlord should also have a policy on their property. So, make it a point to ask them what exactly their policy covers. It will help you in identifying the areas your business renters insurance needs to cover.
Many business owners include business renters insurance in their Business Owners Insurance (BOP). This allows businesses to combine three insurance types into one policy:
General Liability Insurance
General liability insurance helps cover your business from any claims of bodily injury or property damage. For example, if a fire destroys a part of your rented property space, since it is considered a covered peril, this policy can help pay for repairs.
Business Interruption Insurance
Business Interruption Insurance, also known as business income insurance helps cover lost income when your business needs to shut down as a result of a covered peril such as fire, theft, or wind damage. The loss of income can also be due to the rebuilding process after a disaster.
Commercial Property Insurance
Commercial Property Insurance helps protect your business and its physical assets. For example, if a covered loss causes any sort of property damage to your rented space, this policy can help pay for its repairs or replacements.
Commercial property insurance can cover items like equipment, tools, furniture, inventory, and other personal property that was within your rented space.
