If you are renting office space to run your business, you must have the proper business insurance coverage in place to protect your office rental as well as your team. While the property owner will cover any difficulties with the physical structure, business insurance will cover any damage to your office equipment. Most landlords are hesitant to rent to someone who does not have business insurance. 

Why Is Business Insurance Often Required for a Rented Office Space?

There are several significant reasons to have business insurance to rent an office space:

It may be required by the landlord: Before renting to or entering into a lease with a tenant, many commercial landlords want proof of insurance coverage – a certificate of liability. Commercial property owners typically require commercial general liability insurance to cover potential damage to the building or the property of other tenants. This type of policy will typically cover theft perpetrated by visitors to the building.

Accidental damage: If you or an employee starts a fire by accident, it might cause significant damage not just to your business property but also to other businesses and the building itself. The property owner and other businesses may sue you for monetary damages. They may even sue you for business interruption as a result of the fire.

Additional lease responsibilities: Carefully read your contract to determine what forms of building damage you may be liable for. Some landlords may hold tenants liable for changes they make to the interior of the space, building glass, and even air conditioning or heating devices.

Types of Business Insurance Coverages for Renting Office Space

A company owner’s policy is a good place to start for commercial tenants because it often contains three types of coverage, which are as follows:

Coverage for Business Interruption

If an unintentional fire destroys your workplace or a power outage lasts many days, business interruption coverage will compensate you for any lost income. You will also be covered if you choose to conduct business elsewhere while your office is being repaired. You can use this coverage to keep your profits constant and your bills from falling behind.

Property Protection

If you have commercial property insurance, you will be protected if any of your equipment is stolen or damaged in a fire. Your landlord’s insurance may cover the inside and outside of the office, but you must have your own coverage to cover your items. Examine your lease to check if you are responsible for any building damage. You may be held liable for any HVAC damage in the office in some situations. If you want to make any changes to the office, you will need to obtain additional coverage to completely protect yourself against potential damage.

Coverage for Liability

A significant case could jeopardize your possessions. Liability insurance provides an extra layer of security to keep your business running smoothly. Liability insurance protects your company if a visitor is injured while visiting your workplace. You are not required to pay any medical expenditures out of pocket. Your landlord’s coverage does not cover any liability claims arising from your business. Your employees are also protected if they are judged liable for inflicting property damage.

Ready to Get Business Insurance

Insurance coverage for a business is now more vital than ever. If you rent an office space, you will need insurance to safeguard your property as well as your company. Speak with one of our expert representatives here at Panichelle Insurance and we can advise you on the types of business insurance to rent an office space.

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