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Before you sign anything on an office space for lease contract, take a moment to read this article about the insurance you will need.  We are RDS Real Estate, leading the way in the Fort Worth Metro area with affordable industrial space and commercial property for rent.  If anyone knows what you need to know about commercial insurance, it’s RDS Real Estate.  Call us today at 817-439-3224 for more information about an office space to rent..

Office space for lease: who is responsible for what?

In most cases, a landlord will not even rent to you unless you have business liability insurance for an office space for lease.  Yes, the business owner has liability insurance on the office space and building, but you will still need to protect yourself.

Let’s put it another way.  If you are operating as a corporation then you are personally not liable, but that’s only slightly better than having no protection at all.  If you are operating as a sole proprietorship then you are foolish not to have business liability insurance, even if it is not required by the leasing individual/company.  This falls under the “better safe than sorry” category of life.  Yes, the insurance will be added to your overhead and yes, it will cut into you profits and no, you may never use it . . . having said all that, needing it once, and not having it, could be a death blow to your company or to you financially.

Insurance you should consider.

Business liability insurance for an office space for lease covers property, liability, and business interruption.

Property, or business belongings, covers any loss you might have if your property is damaged in the office space.

Liability is the coverage everyone is familiar with, the classic “slip and fall” insurance. If a visiting customer tripped and broke their ankle in your office, rather than a common area of the building, the liability coverage on your BOP may reimburse your customer for their medical bills.

Liability coverage could also pay for legal costs or damages from a lawsuit if you’re held liable for the injury. Since the fall occurred in your rental office, your landlord’s insurance likely wouldn’t step in.

Your liability insurance may also reimburse you if you or your employees damage the space you’re renting and are found financially responsible for repairs.

And, finally, business interruption coverage helps pay for lost income and additional expenses due to a covered risk. Suppose a fire seriously damages your rented office and you need to temporarily relocate. Fewer clients go to your temporary office, and your profits drop as a result.

Business interruption coverage typically reimburses you for lost income after you deduct ongoing business expenses you would’ve had to pay anyway. Depending on your policy, business interruption coverage could also help you recoup costs like additional rent. It could also cover the difference between your utility costs at your new office if they’re higher.

Better safe than sorry.

Insurance is one of those nagging details which you face as a business owner.  Small business owners in particular may find it troublesome, and they may lean towards getting the very least amount of insurance possible.  We would caution against it. The unforeseen has a way of totally disrupting your plans and your future.  You worked hard for that business of yours; now protect it!

A final word about RDS Real Estate.

RDS Real Estate is locally owned and operated, with over three-million square feet of industrial space for lease and commercial property for lease. Call us today for whatever you need, from a warehouse for rent to an affordable shop for rent to retail space for lease.