For any small business, taking the leap to rent some office space is a big deal. Often, it means that your business has outgrown its original home and is ready for bigger and better things. But before you make the next step, there are some things you should know about renting office space.
Does my business insurance cover office rental space?
While your landlord may have insurance for the space, you still need your own business liability insurance coverage. Your landlord’s renters insurance may not protect your business if something happens, which is why you should have your own coverage.
Why should I have my own commercial coverage?
First, many places will not allow you to rent commercial office space without a certificate of liability. This is the document that is given to you by your insurer and proves that you have insurance coverage.
In addition, your landlord’s policy may cover damage to the physical building, but not your contents. That means if there’s a fire or other disaster, your equipment, inventory, and files are not protected. This is where your business insurance would come in handy. It helps protect your belongings, not just the physical building.
Liability insurance coverage has other uses too. For example, if you have a storefront, there is potential for one of your customers to accidentally get hurt. For instance, if they slip and fall, you could be deemed responsible for their injuries. Having liability insurance coverage will help negate some of the financial burdens of having a business and renting space.
What other coverage should I get?
While liability coverage is one major type of coverage you should have if you are renting office space, there are others to consider as well.
Business interruption insurance is a type of coverage to think about. Its purpose is to help you financially if an incident impacts your business and you cannot run your business as usual. For instance, your office experiences a fire and it forces you to relocate. This temporary relocation may cost you some customers and you lose profits. With proper documentation, your business interruption insurance may help cover some of the losses.
Another type of coverage to consider is excess liability. Think of this as umbrella coverage for things you may not expect. If you experience an accident that exceeds your general liability coverage, excess liability can help step in. It can also help cover other underlying policies and even legal fees. It’s the extra layer of protection for things you don’t foresee happening.
Talk to your insurance agent before you decide to rent a new office space. Or if you already have some office space, you should make sure that you have the insurance in place to help protect your company. Your landlord’s commercial insurance won’t necessarily protect your business, which is why it’s so important to have the right coverage for your company. Preparing now could save you a lot of money going forward!