Running a business in a leased space creates unique insurance challenges that many entrepreneurs don’t consider until it’s too late. The lines between what your landlord covers and what you’re responsible for can often be unclear. At Armorcrest Insurance Services in El Centro, CA, we help business owners understand these coverage gaps before they become costly problems.

Your Landlord’s Insurance Won’t Cover Your Business

This is one of the biggest misconceptions we encounter. Your landlord’s property insurance covers the building structure, but it doesn’t protect your business equipment, inventory, or liability exposures. For example, if a customer slips and falls in your store, the responsibility falls on you, not your landlord. The same applies to damage to your computers, merchandise, or custom improvements you’ve made to the space.

Consider all the money you’ve invested in making the leased space work for your business. New flooring, paint, lighting fixtures, specialized equipment, or even basic furniture and supplies are not covered under your landlord’s policy.

Reviewing Your Lease Agreement

Your lease likely requires you to carry specific types and amounts of insurance. Most landlords require general liability coverage and often request to be named as an additional insured. Some leases also mandate tenant improvements and betterments coverage, which protects modifications you’ve made to the space.

Securing the Right Coverage

Commercial insurance for leased spaces typically includes general liability, property coverage for your business assets, and sometimes business interruption protection. The key is ensuring your coverage aligns with both your lease requirements and your actual business risks.

Armorcrest Insurance Services in El Centro, CA, can review your lease and help design coverage that effectively protects your business.