Commercial Tenant Insurance
If your business is looking for a new place to set up shop and your prospective landlord has spoken to you about or is contractually requiting your to purchase commercial general liability (CGL) insurance and/or commercial tenant insurance as a condition of the lease, or if you’re just looking for a new commercial tenant insurance policy, we’ve provided the facts you need to make an informed decision for you and your business.
Commercial tenant insurance, typically contains a key coverage known as tenant legal liability insurance, that can and typically should be be included as part of every commercial general liability insurance policy. Tenants legal liability insurance can cover damage you or your employees may cause to the unit and/or building you rent or lease. Combined with the numerous other coverages you get from your commercial general liability policy, commercial tenant insurance in Ontario, BC, and Alberta can protect your business, your customers, your neigbouring businesses, the general public and your landlord (or the property owner) and their building as well!
Tenant Insurance is a vital safeguard for businesses renting or leasing space in Canadian cities like Vancouver, Toronto, and Calgary. It delivers comprehensive protection, covering belongings, inventory, leasehold improvements, furniture, equipment and liability, which ensures financial stability when facing theft, damage, or accidents. Because of the density of many parts of British Columbia (BC), Alberta, and Ontario, Tenant Liability Insurance becomes particularly significant as it provides coverage for damage that may be caused on or to your property, but which impacts other neighbouring businesses too. Irrespective of your location, size, type of business etc. commercial tenant insurance offers peace of mind and a robust shield for your assets and business.
What Is Business Tenant Insurance?
Commercial Rental Insurance: If your business operates out of a rented space, whether it’s an office, warehouse, or retail store, business tenant insurance is important. This type of insurance, which is a form of commercial general liability insurance, aims to safeguard your business against the cost of claims or lawsuits related to your day-to-day activities. To find the right business tenant insurance policy for you, call ALIGNED today. We are commercial insurance experts, and we are dedicated to finding quality business tenant insurance policies for our customers.
Is business tenant insurance important?
Yes, business tenant insurance is important for many businesses. In some cases, business tenant insurance is even mandatory. Landlords or property owners of commercial spaces can make tenant insurance a condition of the lease agreement. Why? They want to know that their tenants are insured against liabilities. These liabilities may include third party property damage and bodily injury to the leased space, as well as damage to the landlord’s premises. If any of these worst-case scenarios were to occur, you might be on the hook for covering the cost out-of-pocket. But with the right business tenant insurance coverage, your insurer may step in and help pay for the cost of the incident.
Is business tenant insurance for me?
If you’re wondering whether business tenant insurance is right for you, you’re not alone. The reality is that business tenant insurance can benefit any company that rents a property for business use. No matter the terms of your lease or the type of building you work out of (e.g. warehouse, office, retail storefront, etc.), business tenant insurance can protect you.
Coverage highlights | Business tenant insurance
Business tenant insurance policies vary from policyholder to policyholder. However, many feature the following coverages:
- Legal liability: Legal liability coverage aims to protect business tenants against claims of third party bodily injury, property damage, or personal and advertising injury. For example, if a customer is injured or their personal property is damaged while visiting your business space, your business tenant insurance policy may cover any applicable legal costs. These costs may include legal expenses (e.g. settlement and defence fees).
- Medical payments: If your business tenant insurance policy includes medical payments coverage, your insurance company may cover some of the medical costs not covered by health insurance if a customer is injured while visiting your leased space.
- Additional expenses: Finally, additional expenses may also be covered by your business tenant insurance policy. This coverage will come in handy if your leased property becomes unusable due to an insured peril, requiring you to temporarily relocate. In such a scenario, your business tenant insurance policy may cover any expenses above and beyond your normal expenses (i.e. extra expenses to continue to operate your business while your location is being repaired). This type of coverage may also be referred to as loss of use coverage.
What is not covered by business tenant insurance
The reality is that as much as we’d like it to, business tenant insurance does not cover everything. Like every insurance policy, coverage is subject to certain automatically. For example, basic business tenant insurance policies typically are liability only and do not cover the contents of your building (e.g. electronic equipment or furniture). Rather, you would need to add commercial property insurance to your policy if you want this to be covered. Further, business interruption insurance is not typically included in business tenant insurance policies, which means you would have to add it to your policy if you wanted this type of coverage. Business interruption insurance is designed to protect you from lost income if your place of business is forced to close due to an insured peril like theft, fire, vandalism, windstorms, water damage, etc. Next, most business tenant insurance policies do not automatically feature product liability insurance. However, this type of coverage may be important if you sell products to customers (e.g. clothing, food and beverages, toys, etc.). Product liability insurance can protect you in the event that a product you sell causes harm to a customer, such as bodily injury or damage. Professional liability insurance, also known as errors and omissions insurance, is one last type of insurance coverage not usually featured in business tenant insurance policies. This coverage can protect you against lawsuits alleging negligence, error, malpractice, failure to deliver a service as promised, etc.
It is also important to note that intentional acts of damage to your leased space will also not be covered by your business tenant insurance policy. Regular wear and tear and damage caused by a peril or loss that is not specifically insured by your policy will also not be covered. To find out more business tenant insurance inclusions and exclusions, contact ALIGNED today.
Where can I buy business tenant insurance?
The good news is that buying business tenant insurance has never been easier thanks to ALIGNED. All you have to do is click here to get a quote give us a call 1-866-287-0448 and speak with a licensed and experienced broker. In no time, we will match you with a great policy that meets your business’s unique needs.
Factors impacting the cost of business tenant insurance
The cost of business tenant insurance varies widely, as insurance companies use many factors to calculate premiums. To help you understand how insurance rates are calculated, the brokers at ALIGNED have put together a list of factors that are known to influence premiums.
- Type of commercial property (e.g. warehouse, office, retail store)
- Location of commercial property
- Coverage types and limits you choose
- Your leased space’s proximity to a fire hydrant
- Any insurance discounts you are eligible for
- Your claims history:
- The policy deductibles you choose
ALIGN your business with business tenant insurance you can trust
Ready to learn more about business tenant insurance? Contact an ALIGNED expert today. Our team has years of experience helping businesses just like yours find quality business tenant insurance solutions. We are confident in our ability to find a policy that meets the needs of your business. Whether you have questions about coverage or mandatory tenant insurance in your area, or wish to request a quote, we can help. By consulting with an ALIGNED broker, you will have an insurance expert at your fingertips throughout the entire process. Your broker will obtain quotes and compare quotes on your behalf to find you the best possible business tenant insurance policy. Give us a call today or click here to get a quote now.
