How much does commercial renters insurance cost for a small business?

If you’re a small business owner, there’s a good chance you rent commercial property or lease office property to run your business.

Even if you don’t own the property, you are still responsible for events that occur on the property, no matter how unexpected.

commercial renters insurance

This is where commercial tenant insurance comes into play. In this post, we will cover how much renters insurance costs for a small business and how commercial renters insurance will work in 2022.

How much does commercial tenant insurance cost per month?

That The average monthly cost of insurance for commercial renters is about $94 per month, or $1,128 per year and based on a business owner plan or (BOP) that combined Liability and property insurance for your business at an affordable price.

What does commercial tenant insurance cover?

In particular, this type of insurance covers damage to:

  • People (employees, guests, customers/clients)
  • Company property (equipment, tools, inventory, etc.)
  • building or physical property

Additionally, in many cases, landlords will refuse to rent to you unless you provide proof of business insurance.

How does commercial renters insurance protect your business?

Commercial Tenant Insurance prevents you from being held liable for financial damage caused to the property you rent, including as a result of accidents, theft, workers compensation, property damage and more. It also protects your company’s property.

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What is commercial tenant insurance?

“In pure English,” Commercial tenant insurance is a type of insurance small business owners take out when they rent or lease a space that they don’t own. It is independent of the insurance that the property owner has for the actual building.

Although you may already have other types of business insurance, such as

Types of insurance for commercial renters

However, not all forms of commercial tenant insurance cover the same benefits. They offer different levels of coverage for liability, property damage, and other considerations.

business liability insurance

General liability insurance, also known as “slip and fall insurance,” remains one of the most common types of coverage in the business world. It covers many situations including certain types of property damage or falls involving third parties such as guests, customers or employees.

For example, if a client falls in your nail salon and is injured, liability insurance can cover the client’s medical bills. It can also cover the cost of any legal fees if the client files a lawsuit against you and/or your employees.

Securing business objects

Business property insurance coverage is (almost) exactly what it sounds like – you will be compensated or reimbursed if your business property is damaged or stolen during an incident such as a burglary or fire.

While landlord insurance can cover damage to your physical building — like broken glass or smashed doors — it typically doesn’t cover items or valuables in the workplace that belong to you or your employees. Typical items covered under this policy include:

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  • computers
  • telephone systems
  • Personal belongings of employees

Within property insurance there are two types of coverage: Actual Present Value (ACV) and Replacement Cost policy.

Replacement Cost Policy

The replacement cost policy covers the full amount to replace or repair items in your business that are damaged, destroyed, stolen or lost during a covered incident. However, in return for having your items fully covered up front, you will also have to pay a higher premium.

Actual Present Value (ACV)

This form of insurance does not automatically cover the cost of your items. Instead, it reimburses you for stolen and lost items and damage to property after deducting the depreciation of your assets. Therefore, with ACV you will receive a reduced sum insured, but your premium will also be lower.

Business Owner Policy (BOP)

A Business Owners Policy (BOP) combines property and liability insurance. A BOP includes:

  • Property damage, including replacement of damaged company property
  • liability insurance
  • Business interruption coverage (to pay for lost revenue and other unforeseen expenses if your business is temporarily suspended)

I would recommend buying a BOP if you are renting space for:

  • offices
  • restaurants
  • beauty salons or barber/nail salons
  • Apparel and Retail
  • Advisory services and consumer interfaces

Which commercial tenant insurance is best for me?

In order to assess which one is best for your business, you need to determine the risk level of your business. If your business is low risk, you may want to get general liability insurance to cover the basics in the event of an accident.

If you also want to cover property damage, a more comprehensive BOP may make more sense. Despite the increased cost, you have more peace of mind knowing your business is protected under almost any circumstance.

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Renters insurance from Condition.

As a home renter, insurance policies are available to you no matter where you live.

With quality home insurance, you can protect your home and everything in it. Click on your state for more information.

How long does it take for cover to be approved?

You can easily get commercial renter insurance quotes online or by calling a local insurance agent through your preferred insurance company.

From there, it’s a short process to getting coverage approved — it can take anywhere from a few minutes to a few hours.

what is commercial renters insurance

If you already have an insurance company that you use for your home or business, you should be able to upgrade your coverage to include commercial renters insurance.

Most companies can update your policy online within 24 hours of your request.

Once you have reviewed, accepted, and purchased the policy offered by your insurance company, they can usually send proof of insurance immediately.

To become active

As we mentioned earlier, many commercial landlords will not rent to you unless you purchase commercial renters insurance, much like a homeowner who does not rent to tenants without renters insurance.

Even if you’re not legally required to buy commercial renters insurance, it’s still a financially sound decision. If you don’t already have insurance coverage, you can click here to get instant quotes and get covered.

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