General Liability for Rented Premises: An Overview

General Liability for Rented Premises: An Overview

Coverage for damage to rented premises is part of a business owner’s general liability policy. It is designed to protect landlords if a property they rent to a business is damaged by fire or other unexpected peril. Most small business owners don’t even realize they have this type of insurance as part of their policy. It’s important to know how this type of policy works in case, you ever experience damage to rented premises. Discussing your policy is the first step in learning everything you need to know.

Damage to Premises Rented to You Coverage

Damage to Premises Rented to You coverage is part of your liability policy under Coverage A and is made up of two distinct parts.

  • The first part includes coverage of damages caused by fire to rented premises.
  • The second part covers any type of damage caused by perils other than fire.

Both parts cover items owned by the landlord as well as the premises themselves. The term “premises” means any attached buildings or structures as well as the land they are on.

Fire Damage to Rented Premises Rented

When a premise you rent is damaged by fire, the Fire Damage to Premises Rented to You part of your policy will cover the cost. This coverage is written into your policy to cover premises rented or occupied with the property owner’s permission. The usual limit for this type of coverage is $100,000 and is normally listed separately. You may choose to purchase a higher limit depending on the type of premises you are leasing or renting for your business. You are only required to cover the damages of a fire if you are legally liable to do so.

Short-Term Rental Coverage

When it comes to short-term rental coverage, the following three exclusions are only valid if the damage to the premises is caused by fire.

  • You must own, occupy, or rent the property that is damaged.
  • You are liable if the property is being loaned to you.
  • You are liable for damages caused to personal property that is in your custody or care, or in any way under your control.

How to Protect Yourself

When you own a business, it is up to you to learn as much as you can about your business insurance coverage. If you find the policy confusing, ask questions until you have a solid understanding of what is covered and what is not. Commercial general liability coverage is similar to the liability coverage for your home, but in different amounts and for different types of risks. The best way to protect yourself is to know as much as you can about your policy. Never underestimate (or overestimate) the power of your policy!

Consult Our Experts at 01 Insurance

When you have questions about general liability for rented premises or are looking for custom business insurance in Astoria, New York, you need to talk to professionals. Contact our agents at 01 Insurance today to talk to a reputable agent who has years of experience in working with all types of business insurance and liability coverage. Don’t wait until something happens. Find out about all of the different nuances your business insurance policy contains. This will give you a chance to increase your coverage if you feel that it is needed.