Required Business Insurance for Leasing Retail or Office Space

Your business faces liabilities every day.

Protecting your assets means carrying an adequate insurance policy. General Commercial Liability (GCL) insurance protects small businesses from claims of injury, property damage, and negligence related to their business activities.

If you are new to commercial leasing, you will need to look beyond monthly rent and utility costs when determining the affordability of your office or retail space.   The cost of insurance should be factored into your budget. Moving from a home-based business into “brick and mortar” space will cost you more to insure your business, as it becomes a fixed expense along with your other rent expenses.

Who’s Insured?

This depends on the type of business seeking insurance. If you own a business as a sole proprietorship, you and your spouse may be covered under the policy. If you own a business that is a corporation, you and any other owners can be covered, as well as executive officers, directors, and stockholders.

Types of Liability Covered

The CGL policy covers three types of liability exposures: premises and operations exposure, products and completed operations exposure, and indirect/contingent exposure.

Coverage for the premises and operations exposure protects your business against bodily injury claims and property damage related to the ownership and maintenance of the business premises.

Coverage for products and completed operations exposure protects your business against claims for bodily injury and property damages that result from faulty products or completed operations (work performed by the business).

To protect against indirect/contingent liability exposure, the policy protects your business if you are found liable for the negligent actions or work of independent contractors and subcontractors you hire.

Hint: Most Landlords require a plan with 1 million minimum coverage.

If you’re interested in making Tampa home for your business, please, connect with me! I would be happy to show you around. I live here, I know here.

I highly recommend you must read the eBook on what you need to have for starting a business in Tampa, I believe you’ll get a lot out of it. If you haven’t claimed yours, go and grab it now for free! See you inside – I can’t wait to start working with you! We’re better together!

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