Insurance for Businesses Renting Their Commercial Space to Others 

Real estate owners who own and rent out their commercial property know that their investments need financial protection.

Key Coverages to Consider

The following coverages can benefit business owners renting out commercial spaces:

• Commercial property insurance can cover damage to the building itself due to fire, theft, and certain weather events.

• Loss of rental income can assist with rent if the space cannot be occupied after a covered incident, as outlined in the policy.

• General liability insurance helps cover injury or property damage claims from third parties.

• Legal expense coverage can help with attorney fees from contract disputes or issues with tenants.

• Equipment breakdown coverage can assist with damages to building systems that a commercial property owner is responsible for, such as elevators and HVAC systems.

• Umbrella insurance can be useful by adding liability coverage beyond standard limits.

Additionally, talk to your broker about a lessor’s risk only (LRO) policy, which is designed to help protect against tenant-related risks.

Tips for Securing Proper Coverage

When renting out your commercial space, clearly outline all responsibilities of the owner and tenants in a lease agreement. The owner typically insures the building structure and any shared amenities, while the tenants usually cover their own operations and contents.

It’s important to work with an insurance broker who is familiar with commercial real estate. Be sure to review your coverage annually to make adjustments as needed for changing tenants or property values.

Contact Us

Much like a residential property that is rented out, a commercial space should have insurance in place to address common risks. However, a commercial property comes with unique risks and liabilities.

Hall-Green Agency in Kent, OH can help you find a policy that fits your needs and budget. Contact us today for more information or a personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.