As a business owner, you are constantly looking for ways to stay ahead of the competition. While brainstorming new opportunities, perhaps you have decided to expand into a new market. If you're opening a new location to test a new target market, you may opt to rent space in a smaller building to see if there's potential for permanent long-term growth.
If you opt to rent office space while exploring potential growth, it's recommended that you have business insurance coverage in place. Business insurance covers your prized asset in the event that an issue arises. Operating a business is a high-risk endeavor, as an accident can occur at any moment. While the property owner will be responsible for having insurance on the physical building, you're still responsible for covering your equipment and inventory. Obtaining business insurance is also a legal requirement for most landlords before they will agree to let you stay on their property. Here's a closer look at how business insurance protects you while renting office space.
One of the most significant issues that businesses are constantly aware of is the threat of a liability lawsuit. Perhaps a customer is visiting your business and hurts their ankle. Maybe they tried your products and became ill afterward, so they believe that you are responsible for their sickness. You may be sued. Liability coverage could prevent you from losing your investment. Liability coverage will help pay for your legal bills if the injured party pursues litigation. You're also covered financially because the policy covers the injured party's medical treatment. If an accident occurs and one of your products damages the rental property, liability insurance will cover the repair costs.
Property coverage helps provide protection if something happens to your inventory. This gives you peace of mind if your personal items are damaged or stolen. If a fire or natural disaster causes damage to the building, the property owner's insurance may step in to cover the damages. This includes any damage to your belongings. It's recommended that you look over the terms of your lease agreement to see which situations you're responsible for covering. If you plan to make any changes to the building layout, the property owner may require you to cover any damages to the modifications.
Business interruption insurance is a safety net in the event of a disaster. Perhaps you're left wondering what your next move is after a severe storm moved through the area and caused serious damage to the building, leaving you unable to operate your business. Business interruption insurance can help you recoup potential lost earnings as a result of your business having to shut down. Some business interruption insurance policies also assist with monthly expenses such as rent, utilities, and making payroll. You may also be covered if you opt to move to another location while the building is being repaired.
Renting out office space to help expand your business is a low-risk and high-reward situation. Business insurance coverage is designed to protect you during emergencies. The agents here at CF&P Insurance Brokers will help you find the right policy. Contact us today to get started!
