What is business renters insurance?

Business renters insurance protects businesses that lease or rent a commercial space, such as an office or retail shop. It's also known as commercial renters insurance. This coverage safeguards your business property, including furniture, equipment, and inventory.

Landlords often require business renters insurance when signing a lease. You can get this coverage on a business owners policy (BOP), which packages liability and commercial property insurance.

Why is business renters insurance important?

Business renters insurance is important because it protects your property from a variety of risks. While your landlord's insurance can cover damage to the building, it probably won't protect your business's assets, such as your business property, equipment, or any improvements you make to your rented space.

The landlord is responsible for insuring the building, but commercial tenants still need to protect their businesses.

What does commercial renters insurance cover?

Commercial rental insurance safeguards your business from theft, vandalism, fire, and other potential risks. Business renters coverage with a BOP includes protections for the following:

Business property

Business property includes the commercial space where you conduct business, whether owned or rented, along with furniture, inventory, tools, and equipment.

For example, a bakery fire damages everything from the tables, chairs, and equipment to the store's walls, ceilings, and electrical systems. The landlord's property coverage would pay for the structural and electrical repairs, while the baker's commercial property insurance would cover the equipment, inventory, and furniture.

Disruptions to operations

Business renters insurance also protects against disruptions caused by covered events.

For instance, wind damage prevents an office from opening until the space is refurbished. Commercial renters insurance would cover rent, lost income, and other expenses during the disruption. It can also help pay for temporary relocation and other associated costs.

How much does commercial renters insurance cost?

Commercial renters insurance cost is customized for your business and varies based on several factors, including:

  • Property value: The higher your property value, the more you'll pay for business renters insurance. Be sure to consider improvements, permanently installed fixtures, signs, attached structures, equipment, and replacement costs when getting a quote.
  • Business size: The larger your business and the more inventory you have, the higher your business renters insurance cost will be.
  • Business type: Some businesses are considered higher risk. For instance, if you operate a restaurant with a grill and fryer, you'll likely pay a higher rate than a take-out deli without these appliances.
  • Location: High-crime areas or locations prone to certain types of weather can be riskier to insure, which can lead to a higher premium.

The limits and deductibles you choose also influence your premium. It's important to protect your business with the right amount of coverage for replacement and repair costs.

How to get business renters insurance

You can get renters insurance on a business owners policy. Start a quote or call one of our business insurance experts to discuss your needs. They'll help you find an affordable small business renters insurance solution tailored to you.

Not only will you meet your landlord's requirements for commercial rental property insurance, but you'll have peace of mind knowing your business is protected now and in the future.

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