Leasing commercial space for your business comes with unique insurance challenges that many entrepreneurs may not fully understand until an issue arises. Capretta Insurance Agency in Parma, OH, helps business owners navigate the complexities of property coverage when they don’t own the building they operate in.
Understanding Landlord vs. Tenant Responsibilities
Your lease agreement typically outlines the responsibilities of both parties, but it’s important not to assume your landlord’s insurance covers everything. The building owner’s policy typically covers the structure itself, but your business’s contents, equipment, and improvements require separate coverage. This includes items such as computers, inventory, furniture, fixtures, and any tenant improvements you’ve made to customize the space for your operations.
Coverage for Improvements and Betterments
If you’ve invested in flooring, lighting, built-in fixtures, or other modifications to your leased space, these improvements need specific coverage. Standard commercial property policies can protect these investments if they’re damaged by covered perils. Without this protection, you could lose thousands of dollars in improvements with no way to recover the costs.
Business Personal Property Protection
Your business personal property includes everything you own that isn’t permanently attached to the building. This includes inventory, equipment, supplies, and furniture. Even in leased spaces, it’s essential to have adequate limits to cover replacement of these items if they’re damaged or stolen. Consider whether you need replacement cost coverage, which pays to replace items at current prices, versus actual cash value coverage, which accounts for depreciation.
Secure Your Business Investment
Understanding property coverage in leased spaces is crucial for protecting your business from unexpected financial losses. Capretta Insurance Agency in Parma, OH, can review your lease agreement and recommend the right commercial property coverage to safeguard your business assets in your rented location.
