How to Find the Right Insurance for Your Business
Leasing an office space will involve expenses more than the monthly rent the business owner will pay to the landlord plus the normal cost of utilities. Business owner leasing an office space will have to consider also the expenses for the insurance coverage that he needs to take and which the building owner will require. Insurance coverage will be for the protection of the business leasing the office space and the landlord who owns the building being rented out.
Generally, the owner of a commercial building will require the business owner who will be leasing office space to get first insurance coverage that he requires. The business owner must show the building owner the policies for the required insurance coverage. The building owner will require that the tenant business owner must keep all insurance policies up to date throughout the duration of the lease agreement.
The following are the most common insurance coverage that a business that is leasing an office space must have to protect themselves and the building owner:
Commercial General Liability Insurance
Commercial General Liability (CGL) insurance provides protection to business owners against claims of liability for bodily injury, damages to property, and personal and advertising injury, in the form of slander or false advertising.
Premises/operations coverage under CGL pays for any bodily injury or damage to property that occurs within the premises of the company as a result of normal business operations.
Products or completed operations coverage pays for bodily injury and damages to property that occurs away from the premises of the business but is caused by the company’s products or completed work.
Excess liability insurance will pay for covered losses that are beyond the dollar limit of the company’s Commercial General Liability Insurance.
Umbrella liability insurance is a type of excess liability insurance that provides coverage above the dollar limits of the CGL and automobile liability policies.
Commercial General Liability Insurance is a mandatory insurance requirement of building owners or landlords.
It is a broad insurance coverage against loss of property, damage or other liabilities. This type of insurance includes insurance for vehicles, liability insurance, insurance against theft, and elevator insurance. For businesses, an important type of casualty insurance is workers compensation insurance that provides protection to the business against liabilities that may arise in the event that a worker gets injured on the job. Casualty insurance will protect a business from unexpectedly large expenses when they are deemed liable for damages.
Contractual Liability Insurance
It is an insurance coverage that is excluded from the policy of a Commercial General Liability. The coverage will indemnify or hold harmless a person or entity for actions not specifically excluded on the insurance policy. This type of insurance coverage may be made an integral part of the policy, or can be added to the policy with an additional endorsement. Contractual liability insurance may be applied on a limited basis or it may provide a blanket coverage.
Commercial Renters Insurance
The standard commercial renter insurance, also known as the small business property insurance, provides protection to the equipment, inventory, furnishing, and machinery in a business space that is leased from the building owner. A business owner that is leasing an office or commercial space does not own the building or structure but he needs to protect his physical assets that are housed in the leased space against fire or smoke, theft and vandalism, and water damages caused by factors other than flood. A supplemental insurance coverage must be purchased if the business owner wants to protect his physical assets from flood or earthquake.
Product Liability Insurance
This type of insurance coverage is needed by businesses who are involved in the design, manufacture, or distribution of a product. The use of any product exposes the designer, manufacturer, or distributor to liabilities the moment said product causes injury resulting from its use or consumption. Product Liability Insurance protects the policy holder whenever a suit arises out of the use or consumption of the policy holder’s products. The claim could be based on a loss to personal property, business property, injury or death arising from the use of the products designed, manufactured, or distributed by the policy holder. In the event of a lawsuit arising from the use or consumption of a product designed, manufactured, or distributed by the policy holder, the insurer will shoulder expenses incurred from legal defense, settlement charges, or damages fees.
A business owner who intends to lease an office space in a building must discuss with the building owner or landlord the types of insurance that he is mandated to acquire. He should also consider the type of insurance that he needs to protect himself, his physical assets, his employees, and his business in general from any risk of lawsuit or payment of damages.
At the Kennedy Office Center, tenants are given the responsibility of getting their own regular insurance. They will not be required to get insurance coverage more than what they feel they need for their business operations.
To give tenants peace of mind and feeling of security, the building at the Kennedy Office Center have secured access control system for after-office-hours access. The Kennedy Office Center maintains security patrol at night and during the weekends.