FRIDAY, JANUARY 29, 2021
Does a Commercial Landlord Cover Commercial Property Insurance?
Property insurance can always be complicated when it comes to landlords and rented property, whether it may be renting an apartment to live or a location to build your business. If you are looking to lease a property for your business, there are several things you should know about the property and your responsibilities regarding commercial property insurance.
Responsibility for Insurance May Vary
Your lease should state who is responsible for carrying commercial property insurance. In some cases, the landlord will arrange the insurance policy, but you (as the commercial tenant) will be required to pay it. In other cases, you may pay only a portion of the insurance if you are sharing the premises, such as shared offices. You may also be required only to cover certain coverages. All of this should be stated on your lease.
Be sure to communicate with your landlord to understand who is responsible for purchasing insurance for the building. If you have any questions, ask your leasing agent.
Landlord Property Insurance Might Not Cover Contents
If your landlord does carry commercial property insurance, it won’t necessarily cover the contents of the property or work-related items off the premises. If you have contents such as furniture, decorations or equipment, you may need additional insurance.
Types of commercial property insurance to consider include:
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Commercial Auto Insurance: Commercial auto insurance provides coverage for the vehicles owned or used by your business for work purposes. This is a separate policy from your commercial property insurance and can provide comprehensive coverage, collision coverage, liability, medical payments coverage, uninsured/underinsured motorist coverage and more.
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Inland Marine Insurance: Inland marine insurance provides compensation if your business’ equipment is damaged in transit.
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Crime Insurance: Crime insurance offers compensation in the unfortunate case that an employee steals from the business.
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Food Spoilage Insurance: Food spoilage insurance allows you to replace food needed for your business that is spoiled due to a covered accident.
No matter how much insurance you need, speak with your landlord first before purchasing a policy. Your requirements may differ depending on your location and situation, so it is best to remain open to communication and work with those involved to insure the commercial property.
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