Everything You Need to Know Before Getting Business Renters Insurance
Disasters don’t wait around for a convenient time to strike, so you need to make sure your business is properly covered. One of the best examples of this scenario is the Belcamp Maryland gas station employee who was injured during a robbery.
If your business rents the property where you operate, you need specialized coverage to protect you from liability and other unforeseen circumstances that can happen. Business renters insurance works by covering you in cases of damage. This type of insurance also covers people (such as staff, workers, or customers), property, and equipment (for example, computers, laptops, and any other equipment or inventory you need for your business).
What Is Business Renters Insurance?
Business renters insurance is a combination of insurance policies that protect businesses that rent property, such as offices and warehouses against certain losses and damages.
What Type of Rental Business Insurance Coverage Does My Office Need?
The main types of business renters insurance cover both liability issues and property damage. How much coverage you will need depends on several factors, including how many employees you have and the amount of foot traffic you get, not to mention the equipment you need for your business. What’s important is that you make sure everything that’s integral to your business gets the best coverage possible.
What Coverage Is Included in a Business Renters Insurance Policy?
When you’re renting, you’re not the only one who has insurance on the building, your landlord also has a policy and you should discuss with him what exactly his policy covers so that you can make sure your renters insurance will cover everything his policy does not. The insurance and coverage responsibilities are typically part of the lease agreement. You never want to make assumptions about what your landlord’s insurance will cover and you need to find out before you sign the lease.
Renters policies are typically included in a Business owners policy (BOP) that cover damages such as:
- Natural Disasters: These include a fire burning down your small business renters insurance unit or water damage.
- General Liability: This protects you if a customer trips and hurts himself on the premises.
- Crime or Theft: If theft or crime in the area is a concern, purchase a policy including those aspects.
An East Insurance Group representative can tailor your particular coverage needs into a personal business policy.
In addition to the standard business renter’s coverage, you can purchase added protection on your business policy. This can protect you in cases where a fire or other disaster burns down your office, and you need income coverage, and need to pay for relocation.
Professional Liability Insurance
Professional liability coverage is the traditional “slip and fall” insurance with which most business owners are familiar. For example, if someone trips and injures on your property, the liability coverage on your insurance could reimburse them for their medical bills.
Also, liability coverage could pay for legal costs and damages from a lawsuit if the injury was proven to be the result of negligence. If the fall happened in your rental office, your business renters insurance would not be involved.
Product Liability Insurance
Product liability insurance is a type of business insurance that can cover the costs of compensation claims if someone is injured or their property is damaged by a product that you’ve sold. There are also some situations in which you may be liable even if you haven’t made the product.
Equipment breakdown coverage is a form of commercial insurance that provides funds to repair or replace damaged machinery or equipment that has suffered a mechanical or electrical failure. This type of insurance protects your company’s computers, electrical systems, production machinery, and other equipment from sudden and accidental malfunctions.
How Much Does Business Renters Insurance Cost?
Typically, the average cost of business renters insurance is $95 per month or $1,140 per year. This cost is for a Business Owners Policy that combines business liability and business property coverages in one bundled policy.
There are many factors that have an impact on the commercial renters insurance cost:
- Size of business location
- Building age
- Fire protection
- Age of business equipment
- Risk covered
- Limits and deductibles
Business Renters Insurance FAQ
Why Do I Need Business Renters Insurance?
Whether you are just starting a business or a part of a corporation, business renters insurance is always a good idea as it covers you in various circumstances. It would be best always to consider how much liability coverage you need before deciding what should be included in your policy.
Can You Get Renters Insurance for a Business?
The answer to this question mostly depends on your policy form. In most cases, business personal property is excluded from business renters insurance. In other words, everything that belongs to your business would not be covered under renters insurance.
Business Renters Insurance Requirements
Although you are not required by law to have business renters insurance, there is a big chance that your landlord or property management will require you to have it. The reason for this is that they don’t want to cover the cost of any accidents or injuries at your business.
How to Get Business Renters Insurance
There are several ways to get business renters insurance:
- Purchase from an insurance company
- Work with an insurance broker
- Work with a insurance specialist
- Contact an online marketplace
Does Renters Insurance Cover Business Inventory?
In short, any inventory or business equipment is usually not covered by the business renters policy.
The Difference Between Replacement Cost vs Actual Cash Value
The replacement cost insurance covers the full replacement cost of your items. On the other hand, actual cash value only covers depreciated value. That said, with replacement cost insurance, you have enough money to cover your belongings.
What Is Not Covered by Business Renters Insurance?
Business renters insurance will rarely or never cover:
- Bed Bugs and Pests: Most renters insurance policies do not cover damage costs associated with bed bugs as they are considered a maintenance issue, along with rodents.
- Earthquake and Flood Damage: Standard renters policies don’t cover earthquake or flood damage. You can, however, buy separate flood insurance in MD or an earthquake policy.
- Car Theft or Damage: Damage or theft of your car will not be covered by your business renters policy. Instead, you will need a commercial car insurance policy with comprehensive coverage.
Are you still confused about business renters insurance, or do you need some help getting a quote for your business? Contact us today and get all the information you need fast and for free!
Ready to Start?
Get matched with a provider that fits your needs today.