THE ABC'S OF COMMERCIAL RENTERS INSURANCE
If your business rents an office, store, warehouse, or
other commercial premises, you're responsible for any property you use
or store there, as well any damage you cause to the rented property.
Commercial Renters insurance (also known as Business or Commercial
Property coverage) will repay you if your equipment or stock is stolen
or damaged, or if you damage the premises inadvertently.
Some Commercial Renters policies also provide limited protection for
possessions of your employees on premises. You might also want to buy
additional coverage for flood damage, and/or glass windows and displays,
as well as Business Interruption insurance (which will reimburse you if
fire or theft keeps you from operating).
The premium depends on the risk factors facing your business. For
example, the risk of fire depends upon how the premises you're renting
is constructed, whether it has a sprinkler system, and its distance from
the nearest fire station. If you rent in a high-crime area or have
particularly valuable or desirable inventory or equipment, you'll pay a
higher premium.
You can reduce the premium by increasing your deductible and/or installing fire and theft alarms and other safety devices.
When insuring equipment and inventory, you can choose either
replacement cost or present value coverage. Replacement cost, which is
more expensive, will reimburse you for the full cost of buying new
items. Present value reduces your reimbursement by calculating
depreciation based on the age of the property.
If you run a home business from a rented dwelling, see if your
Renters insurance covers property and liability for business activities.
Although most policies don't include this, you can obtain coverage
through a policy rider.
To learn more, just give us a call at any time.