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Commercial leases often include terms that require tenants to acquire insurance coverage for the time they’re renting a property. While every commercial property owner or manager can include different requirements, there are a few that are fairly standard. Knowing about these business insurance requirements helps you plan your company’s budget and know you have proper coverage to comply with the leasing agreement.
General Liability Insurance
Landlords and property management companies typically require basic liability insurance coverage to protect themselves from being held financially responsible for someone else’s accidents. You’ll sometimes see this insurance listed as public liability or premises liability coverage, and general policies cover situations that result in personal injuries or property damage. For instance, general liability could cover a customer’s medical needs if the individual sustains a slip-and-fall injury while visiting your property.
Workers’ Compensation Insurance
This type of insurance is usually required for companies in most states. The reason a landlord may require it is to avoid potentially being held responsible for a worker’s injuries sustained during an accident on the commercial property. Commercial landlords also prefer to know your company is protected against dealing with serious financial losses from a work-related injury claim that could hinder your company’s ability to earn enough profits to pay the rent.
Business Interruption Insurance
An increasing number of commercial property landlords are requiring this type of insurance to cover potential financial pitfalls that occur with business disruptions. If a fire were to halt your current business operations, you could experience financial hardships. The same is also true of cyberattacks that require your company to temporarily shut down while it waits for security to be restored to its systems. Business interruption insurance policies provide financial support reassuring your landlord that your company will have enough funds to pay rent on time.
Commercial Auto Insurance
While it may seem odd to need your landlord to be included in your commercial auto insurance policy, there are times when this makes sense. Landlords with properties that host large fleets of commercial vehicles or where people constantly come and go may require this addition to avoid being held liable for theft or vandalism. Since criminals often target commercial properties, landlords prefer to know they won’t be sued for any potential losses that are out of their control.
Industrial Special Risk Insurance
Many commercial properties have features that are considered high value, and your company may also have special equipment on-site that costs more to repair or replace than what the general property damage policy covers. Your lease may outline the requirements for coverage amounts regarding this type of insurance, and you can work with your insurance agent to find the right level based on your company’s insurance and property values.
Protect your business and stay compliant with your commercial lease by ensuring you have the right insurance coverage. For affordable, reliable business insurance as well as homeowners, renters, motorcycle, and car insurance San Diego residents call on the trustworthy professionals at Altra Insurance Services. Contact us today to get expert guidance on finding tailored insurance policies that meet your lease requirements and safeguard your company from unexpected risks.