When you rent a building for your business, the lease agreement protects you and the property owner. While many of these agreements are standard across the board, you do need to pay close attention to your lease and what your lease insurance requirements are. Here is how you can make sure you have adequate protection.
Read Your Lease Thoroughly
Some leases, such as the triple net lease, will have you liable for all expenses associated with the building. This means that you have to cover property taxes, liability, property insurance and more. If there is an incident, such as a fire or flood, you could lose thousands of dollars. Make sure that you understand the terms of your lease and the insurance options required.
Discuss Your Lease With a Broker
Before you enter into a lease agreement, consider setting up an appointment with an insurance broker. Insurance brokers familiar with lease agreements and the insurance coverages that property owners may require of you can advise you on whether to go through with signing the lease or going back to the negotiation table. Your insurance bill should mitigate your risk but not break the bank or make the space less worthwhile.
When it comes to leasing a property, the property owner can ask you to carry specific insurance coverage types. Usually, these coverages protect you and the owner. If you don’t have adequate insurance, you could wind up devastating yourself financially.