When you sign a lease for a building, you are entering into a complicated contract as a business owner. Your lease protects the building owner and can protect you also. However, if you don’t carry adequate lease insurance, you could have trouble with your lease.
How Leases Require You To Have Insurance
Your lease type can require you to carry insurance. There are three common types of commercial leases, single, double and triple net. Some leases may have a higher rent payment, but the owner will pay many of the expenses; however, you still need to have liability insurance.
How Carrying Insurance Protects You
If you do not carry insurance, you could be held liable for injuries, property damage and more. For example, if you leased a restaurant and were allowed to make modifications to the building and don’t have insurance coverage for that addition, you could be violating your lease agreement. When you violate your lease agreement, it can cost you thousands of dollars.
If you want to protect your investment, you should always have your insurance adjuster look into your lease agreement. It is easy to skim over a lease and to sign it. After all, a lot of leases are the same cookie-cutter outline as others. Don’t give in to temptation and make sure to review the lease extensively.