Do I Need Business Insurance to Rent an Office Space?

A business insurance policy is a must if you are renting an office space. It is your landlord’s responsibility to carry insurance for the physical building itself. Business insurance can help protect your business property and provide liability or financial protection in case of certain mishaps or events.

Why Do You Need Business Insurance for a Rented Office Space?

There are several important reasons to have a business insurance policy when you are renting office space:

• The landlord may require it: Many commercial landlords require proof of insurance coverage – a certificate of liability — before they will rent to or enter into a lease with a tenant. Generally, commercial property owners require you to have commercial general liability insurance to cover potential damage to the building or the property of other tenants. Typically, this type of policy will also cover theft committed by people you invite into the building.
• Protection for your belongings: The landlord’s insurance coverage protects the physical structure, but not for your business property located within a rented office space. Property coverage included in your business insurance policy can protect you against accidental damage or theft of business valuables, such as computers, equipment, furniture, inventory, and files.
• Additional responsibilities under the lease: Read your lease carefully to find out what types of building damage you may be responsible for. Some landlords may require tenants to be responsible for modifications they have made to the interior of the space, building glass, and even air conditioning or heating units.
• Accidental damage: If you or an employee accidentally starts a fire, it could do severe damage, not only to your business property but to other businesses and the building itself. The property owner and the other businesses could sue you for damages. They could also sue you for business interruption caused by the fire.
• Personal injury: A client or someone visiting your office could slip or trip and fall, or otherwise sustain an injury on your business premises. The injured party may sue you for damages. Liability coverage can help with your legal fees and any settlement or award. If the accident or injury occurred in a shared area of the building, the property owner may be responsible. If it occurred within your office space, your business may be responsible for the injured person’s medical bills and other damages.
• Business interruption: This type of insurance provides financial protection in case an incident prevents your business from operating as usual. For example, a fire in the building could force you to relocate, which could lead to lost business and profits. Business interruption insurance can help cover the losses.

Insurance protection for a business is more important than ever today. If you are renting an office space, you will need insurance coverage to protect your business property and to protect your business against liability and financial losses. Speak with our knowledgeable agent. We can advise you on the types of coverage you need and help you find the best available rates.