Landlords require tenants to purchase insurance as a way of protecting their investments. You may be a business owner looking to expand into a new office. As you’re aware, operating a business comes with many risks. Here’s a look at some key insurance policies to obtain before signing a commercial lease.
- Business Interruption Insurance
More landlords are mandating that tenants purchase business interruption insurance. This policy covers your landlord if you cannot pay rent due to a loss of income. A fire may severely damage the building where you operate your business. Business interruption insurance covers you if your business is shut down by providing your projected revenue so that you can continue to pay rent and meet other essential expenses until the building is restored.
- Workers Compensation
Purchasing workers compensation is a legal requirement if you have any employees. Workers compensation covers your employees if they are injured in the workplace. Workers compensation assists with the injured party’s medical treatment and rehab. The policy also covers their lost wages until they can return to work.
- Liability Insurance
Liability insurance for commercial leases is a legal requirement. Landlords lean on liability insurance to protect them if someone gets injured or another accident occurs regarding their business. General liability insurance ensures that you will be covered if a customer gets injured while visiting your business or if one of your products accidentally causes damage. Liability insurance is critical if your business has a lot of customer traffic daily.
- Why Purchasing Insurance is Important
Landlords must take care of their property to be safe for everyone. It’s recommended that you avoid signing a lease for a commercial property that has potential hazards. Landlords purchase insurance to protect their property, but that differs from the needs of your business. For example, your landlord’s insurance only covers your business if your equipment and inventory is stolen or damaged. That’s why obtaining insurance is so important. You should consider purchasing a Business Owner’s Policy, which may make the most sense financially. BOP combines general liability insurance and commercial property coverage under one policy, so you’ll pay one rate for coverage instead of two.
Consult with 01 Insurance!
Liability insurance protects your business while giving your landlord security as well. If you have any questions about commercial insurance, the team here at 01 Insurance will help you find the right policy to protect your business. Contact us today to resolve your insurance concern.