You may be planning to expand your business by moving into a new location. While you may have purchased commercial rental property insurance to protect your assets, your landlord will likely mandate that you purchase liability insurance before finalizing the lease. Let’s delve into this topic to understand it better.
Why Landlords Mandate Tenants Purchase Insurance?
Your landlord is aware of the potential risks associated with operating a business. They want protection against an accident occurring at your business. Consider that your equipment malfunctions, someone gets injured, or you cause property damage. Your landlord’s policies will not cover these scenarios, so purchasing liability insurance is essential.
Why Isn’t My Landlord’s Coverage Enough?
Your landlord is expected to keep the property safe by preventing hazards such as slippery floors and damaged walkways. Their insurance policy may also cover their property in the event of a fire or some other natural disaster.
However, their policy likely only covers replacement costs for their items, not your business. That’s why purchasing commercial property insurance is recommended because you’ll have your safety net in place if something goes wrong.
Generally, landlords do not want to be held responsible for covering expensive medical bills or repair costs due to an accident you caused. It’s recommended that you speak with the landlord and ask about the required insurance coverages you need to purchase before signing the lease.
Common Required Coverages
Liability Coverage:
The landlord may tell you to look elsewhere if you don’t have a certificate of liability insurance. Generally, liability coverage protects your business if you are responsible for a customer sustaining while visiting you or accidentally damaging someone’s property. Liability insurance covers the injured party’s medical bills and potential repair costs. You’re also covered if the injured party decides to pursue legal action against your business.
Workers Compensation:
Workers Compensation is a legal requirement in most states if you have employees. Workers Compensation protects your business if your employees are injured on the job. The policy covers your employees’ medical treatment and lost wages.
Commercial Property Insurance:
Commercial property insurance protects your business by covering potential repair and replacement costs if your possessions are damaged.
Cyber Liability Coverage:
Cyber liability coverage is considered essential due to the rise of online transactions. It protects your business if you sustain a data breach that results in your customers’ or employees’ personal information being leaked. Cyber liability coverage assists with any costs associated with the damages.
Upgrade Your Protection with J. Archer Insurance Group
Expanding your business is an exciting time. However, you must speak with your landlord to ensure you obtain all the necessary insurance coverages. Our J. Archer Insurance Group team will guide you through the process and ensure you have the right policies. Contact us today to get started.
