You may be thinking, my landlord has insurance, why do I need my own policy? The main reason is that your landlord’s policy is not going to cover anything you own on your own! Their commercial property policy will cover damages to the building and to their business personal property, but your own property will not be able to be replaced or reimbursed through their policy.
If you live in a rented dwelling, apartment, townhome, etc., we would definitely advise you get insurance to cover your personal property within the home, but what about if you rent a space for your business?
The best choice for a business that rents their space is to add both business personal property and tenant improvements/betterments coverage to your policy.
Business personal property is pretty self-explanatory. It will cover damages to personal property owned by the business (including, but not limited to furniture, merchandise, equipment, etc.). Tenant improvements/betterments is going to help out with any type of structural changes or improvements you do to a building you are renting. For instance, if you build a wall in the middle of your store or restaurant, that is considered a tenant improvement and would not necessarily be covered by the landlord’s policy (and even if it was, you spent the money to build it, you should be reimbursed for it). This coverage makes certain that you are not going to be completely left out in the cold if something happens to a building you have improved but do not own.
In short, just because you are renting your space does not mean you do not need your own insurance policy. If you have questions about a tenant policy or commercial property coverage for your business, please reach out to our agency with any and all questions.