As a business owner who chooses to rent rather than buy the space they operate in, you may be under the impression that any damages to the property would be covered by the owner’s insurance policy. That, however, is not always the case. Instead, the renter is typically responsible for any building damages incurred as a result of their business, which can mean something as simple as scratches on the floor due to moving furniture, to something as complex as a building fire caused by a faulty office device. A property owner’s policy also wouldn’t cover other business-related types of liabilities, and having to pay for any catastrophic incident out of pocket could force a company out of business.
Signing up for a commercial renters insurance policy is essential for all business owners – but is everything you’ve read about these policies true? Here are the truths behind some of the most common misconceptions about commercial renters insurance.
Common Misconceptions About Commercial Renter's Insurance
I Should Look For the Lowest Premiums.
It’s no secret that premium rates can vary wildly between different insurance companies. The catch: going straight for the cheapest premium can sometimes mean having a policy that is lacking the level of coverage you need. After receiving quotes from multiple companies, the next step is to review each proposal in detail in order to familiarize yourself with the types and amounts of coverage each policy offers. Then you can decide which policy is the right combination of cost and coverage for your business.
I Don’t Need to Change my Policy.
From hiring new employees to expanding product offerings, most businesses change over time. When your business changes, your insurance needs could change as well. Periodically reevaluating your policy is important in order to ensure your coverage is still adequate for your needs. A great time to do this is two to three months before your policy is set to renew; write down what changes have occurred since the policy last renewed, and review your coverage to evaluate whether it is still right for your business.
Liability Policies are Just Pricey Add-Ons.
There are many different types of coverage that commercial renters insurance can have, and not all policies will have every type of coverage. Often, these additional types, including Cyber Liability, Employment Liability, and Professional Liability, must be added on to your insurance policy. While they will increase the cost of your plan, they also give you critical safeguards against issues you may not realize could arise, such as litigation from a data breach or a disgruntled former employee.
I Don’t Need An Agent When I Can Just Get a Policy Online.
Many mundane tasks have become much simpler in the digital age, and getting quotes for commercial renters insurance is certainly one of them. In this case, the easiest route isn’t necessarily the best one to take. Agents have years of experience with all types of insurance, which gives them valuable insight into what policies and coverage options would be best for your particular needs. And because they work with many insurance companies that offer business renters insurance, agents can narrow down the options in order to provide you with quotes that have the best combination of price and coverage.
While many things about operating a business have changed in recent years, the need for adequate insurance coverage has certainly remained the same. Purchasing a commercial renters insurance policy ensures that your business is adequately covered against the myriad issues a business can face, so that a problem, no matter how big or small, doesn’t end up forcing you to close your doors forever.
Pepper, Johnstone & Company protects your family with a choice of multiple insurance companies to choose from, for home, auto, and business. We've helped countless people save money on their insurance while making sure they're properly covered. Visit us today at our website, or give us a call at 256-232-7818 to get us working on a quote for you today. You can also request a commercial liability insurance quote here.