Okay, you are about to rent office space for your new business and your new landlord insists you provide proof of business insurance in order to finalize the lease. What is it and how do you get it?
“Insurance” is a very broad term with many applications. There are life and health insurance plans providing benefits when the insured person dies, or incurs expenses resulting from illness or accidental injuries. Subsets include Disability Insurance, to replace income lost due to illness or accidental injury, plus Long Term Care Insurance to provide dollars to pay the bills for at-home or institutional care. The common thread there requires the insurance be provided to cover a living person.
Then there is insurance to cover things and events…Think planes, trains and automobiles…Mechanical things break, or someone unintentionally breaks them, creating a need for dollars to fix or replace them. Fire or weather damages or destroys a home or business, creating the need for cash now to repair or replace. That form of insurance is referred to as “Property/Casualty” insurance, or short form,”P&C Ins.”.
Insurance on residences or personal automobiles is referred to as “Personal Lines insurance”. Insurance on offices, stores and most other items needed in order to operate a business is referred to as “Commercial” lines insurance.
There is insurance to cover events and legal responsibilities such as professional liability, business errors & omissions, and similar events.
In addition to the above there are dozens of additional insurance products to cover much more than has been mentioned here.
Average small business owners, will need Commercial Insurance to cover losses created by fire and wind storm, burglary/theft, in addition the liability insurance in case someone is injured while in his/her business establishment. Get those from a qualified Commercial Property & Casualty Insurance Agent. Good ones will have affordable policy packages to fit your landlord’s requirements.
You may or may not be able to get what you need from the guy or gal who insures your home or automobile, since most of them specialize in “Personal Lines” of insurance. Instead, Google “Commercial Insurance” in your town to find a more qualified agency which specializes in serving business clients.