Your business's property is vulnerable to all kinds of threats, whether you own your building outright or rent it. But if you're using rented property, it can be especially important to ensure that it's covered against many different disasters. Rented property could be stolen, damaged, or destroyed, which could end up in huge losses for your company without property coverage.
Fortunately, an independent insurance agent can help you find the right business renters insurance for your unique company. They'll ensure you get set up with a policy that includes the ideal amount of coverage. But first, here's a deep dive into what business renters insurance covers and when it's necessary.
What Is Business Renters Insurance?
Business renters insurance is not a separate policy or coverage. Instead, this coverage is part of your business insurance or business owners policy.
Standard business insurance includes protection for rented premises. So, while you may not find this as a common insurance industry term, you can still ask your independent insurance agent about getting business renters coverage for your rented commercial property.
What Does Small Business Renters Insurance Cover?
Your business owners policy (BOP) covers your rented commercial property. A BOP provides the following protections for small businesses:
- Commercial general liability insurance: This coverage protects your business against lawsuits for claims of bodily injury or property damage by the public.
- Business income insurance: This coverage protects your business against losses that could arise during temporary closures due to a covered peril like a fire.
- Commercial property insurance: This coverage protects your business's property, including computers, inventory, and more, against many threats like theft, fire, etc.
Ask your independent insurance agent about getting your business equipped with all the business renters insurance it needs through a BOP.
What Else Is Covered by Business Renters Insurance?
The rental coverage provided in a BOP also covers businesses that rent or lease their spaces when making approved changes to their property. Business renters insurance includes coverage for:
- Property alterations
- Property installations
- Property additions
- Property fixtures
Your BOP covers betterments and improvements to a small business's rented property. If you're worried that an alteration, installation, etc., to your leased or rented property might be excluded, review your policy with the help of your independent insurance agent first.
What Kinds of Rented Property Are Protected by Business Insurance?
The commercial property coverage provided by your BOP protects all kinds of business equipment, whether you own or rent it. This coverage can apply to the following types of commercial property.
- Offices and other buildings
- Tools
- Inventory
- Certain equipment
- Fixtures
- Furniture
Your commercial property is protected against numerous perils like theft and fire damage. If you need more coverage for your business's property, whether owned or rented, ask an independent insurance agent for help.
Does Renters Insurance Cover Business Property?
Typically, business property is excluded by most renters insurance policies. However, you can sometimes add coverage for business property to renters insurance through a rider or endorsement. It's also important to remember that a renters insurance policy usually won't cover liability claims filed against your business.
How Much Does Business Renters Insurance Cost?
The coverage for your business's property, rented or not, is just one part of a small business insurance policy, or a BOP. The current average cost of BOP insurance is about $57 per month or $684 per year.
However, the cost of these policies can vary depending on many characteristics of your business, including:
- Size
- Location
- Operations
- Risk level
- Annual revenue
- Claims history
- Amount of coverage
To determine how much business renters insurance and business insurance in general costs in your area, work with an independent insurance agent. They can help you find exact quotes for business insurance of all kinds in your town.
Why Choose an Independent Insurance Agent?
Independent insurance agents simplify the process by shopping and comparing insurance quotes for you. They have access to multiple insurance companies, ultimately finding you the best business renters insurance coverage, accessibility, and competitive pricing while working for you. And down the road, your agent can help you file business insurance claims and update your coverage when necessary.
Sources
https://www.iii.org/publications/insuring-your-business-small-business-owners-guide-to-insurance/specific-coverages/property-insurance
https://smallbusiness.chron.com/business-renters-insurance-work-42239.html
https://www.insurance.com/small-business/how-much-is-business-owners-policy-bop/