Can commercial coverage protect rentals?
Most business owners understand that their commercial property insurance is designed to protect their building, supplies, equipment, inventory, and the other physical assets that their company owns. But what if your company does not own the building it operates out of? Will your commercial insurance still offer coverage? Here’s what you need to know.
- 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.
- 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 Phocus Insurance in Phoenix, Arizona. We are ready to get you the coverage that you need today.
