Perhaps you have decided to rent an office space or some materials in order to operate your business more efficiently. There are still risks involved, which is why business renters insurance is recommended.
What Is Business Renters Insurance?
Business renters insurance is available through purchasing a Business Owners Policy. A BOP merges multiple types of coverage into one policy. The policy includes general liability, business income, and commercial property coverage. BOPs cover rental property as well, so you’re protected if your rental property is damaged or you are involved in a liability dispute.
What Are the Extra Coverage Options?
Extra coverage options in business insurance include:
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Professional Liability Insurance
Professional liability insurance is included in business renters’ insurance policies. This type of coverage protects your business if a customer alleges that you performed negligent service. This type of coverage also protects your business if you are accused of slander, libel, defamation of character, and copyright infringement.
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Business Interruption Insurance
Business interruption insurance covers your business during emergency situations. You are covered if a natural disaster destroys your property and causes you to cease operations for a few months. Business interruption coverage ensures that your business continues to function somewhat normally during this difficult time.
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Workers Compensation Insurance
Obtaining worker’s compensation insurance is mandatory if you have employees. Workers’ compensation covers your employees’ medical care if they suffer an injury on the job. The insurance also protects your business from a potential lawsuit.
Benefits of Adding Business Renters Insurance
Running a business is unpredictable, as accidents can occur at any moment. That’s why it’s recommended that you obtain as much insurance as possible. Business renters insurance is the only coverage that protects your employees if they accidentally damage the rental property. The policy also covers any accidental damages caused by an independent contractor that you hired. Obtaining business renters insurance could put you in a favorable position to land contracts. Your landlord may also require that you add business renters insurance before letting you use the property.
What Is Excluded in Renters Insurance
Business renters insurance does not cover your business in every situation. Flood damage is a common exclusion. You’ll need to purchase extra coverage to protect you if the rental property suffers any flood damage. Damage caused by earthquakes is generally excluded from renters’ insurance policies as well. Any damage that occurs due to poor maintenance is also excluded from renters’ insurance policies. That includes damages caused by bugs and rodents.
How Can You Find the Right Policy?
It’s recommended that you assess multiple quotes before purchasing a policy. Bundling policies is recommended, though you can also adjust the policy based on the custom needs of your business. Try to learn about the potential exclusions in the policy before agreeing to it. Assess the present and future risks of your business. Your business will likely evolve over time, which will likely expose you to a new set of risks. It’s also important to avoid letting your insurance policy lapse. If your property suffers damage during a lapse, you will be completely responsible for covering all of the replacement or repair costs.
Consult with J. Archer Insurance Group to Get the Right Renters Insurance Coverage
Business renters insurance is essential coverage for many businesses. The team here at J. Archer Insurance Group will help you find the right policy so that you will be protected in any situation. Contact us today to get started!
