Last Updated: June 10, 2022

What You Need to Know About Business Renters Insurance

TLTR: This blog explores why people operating a business using a rented space might need business renters insurance. It also discusses what the policy covers, how much it costs, and the most convenient ways of getting it.

Running a business in the modern world comes with its own set of risks and uncertainties. If you’re operating a small business from a rented property, business renters insurance can help you protect it from liability and other unforeseen circumstances.

Business renters insurance will cover any damage that your rented property might face. It covers you and your staff, as well as your customers. It can also cover property and machinery, such as equipment and any inventory that is stored on-site.

So let’s start with the basics!

In this blog

Who Needs Business renters Insurance?

If you operate a small business in a rented property such as a storefront, an office, a restaurant business, or a warehouse, you should consider getting business renters insurance.

However, you’re not required to get renters insurance for small businesses unless your landlord or property management company says you have to have it, which they probably will. They won’t want to cover the cost of any accidents or injuries at your business.


What Does Business Renters Insurance Cover?

The coverage that your business renters insurance provides will generally be specific to your operations and the space you’re renting. Business renters insurance can offer the following coverage:

  • The damage you or an employee inflicts on the space
  • Any damage inflicted by a third party
  • Damage and theft to office equipment, inventory, or property stored within the space
  • Any damage resulting from disasters like fire and other unforeseen events
  • Accidents and injuries within the space that result in business lawsuits

However, not all standard business renters insurance will cover all of these instances. Renters insurance is typically a customized policy or a combination of specific policies.

Additional coverage that you can add to your business renters insurance:

Product Liability Insurance 

Product liability insurance covers the cost of compensation claims if someone is injured or their property gets damaged after using the product your business has sold.

Professional Liability Insurance

If someone trips and gets injured inside your property, professional liability coverage can pay for their medical bills.

Liability coverage will also pay for the legal costs and damage resulting from any lawsuit against you.

Equipment Breakdown insurance 

This is a form of commercial insurance that covers any repair or replacement of damaged equipment or machinery. This policy will cover company’s computers, electrical systems, production machinery, and other equipment from accidental malfunctions.

Commercial Auto Insurance 

Commercial Auto Insurance covers vehicles that are owned by businesses for its operations. It covers repair costs, medical costs for bodily injuries, legal defense costs, vandalism, and collision coverage.

Note: You won’t be the only party to have insurance on the building space when you’re renting. Your landlord should also have a policy on their property. So, make it a point to ask them what exactly their policy covers. It will help you in identifying the areas your business renters insurance needs to cover.  

Many business owners include business renters insurance in their Business Owners Insurance (BOP). This allows businesses to combine three insurance types into one policy:

General Liability Insurance

General liability insurance helps cover your business from any claims of bodily injury or property damage. For example, if a fire destroys a part of your rented property space, since it is considered a covered peril, this policy can help pay for repairs.

Business Interruption Insurance 

Business  Interruption Insurance, also known as business income insurance helps cover lost income when your business needs to shut down as a result of a covered peril such as fire, theft, or wind damage. The loss of income can also be due to the rebuilding process after a disaster.

Commercial Property Insurance

Commercial Property Insurance helps protect your business and its physical assets. For example, if a covered loss causes any sort of property damage to your rented space, this policy can help pay for its repairs or replacements.

Commercial property insurance can cover items like equipment, tools, furniture, inventory, and other personal property that was within your rented space. 

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How Much Does Renters Insurance Cost? 

The cost of your business renters insurance will depend on a number of factors. These include the size of your business, the location of your business, the number of people you have employed, the value of your equipment, and your claims history. Larger businesses are typically more vulnerable to risks, and have to pay higher premiums. Getting additional coverage will also increase costs.

According to, renter’s insurance on average costs $27 a month, $325 a year for $100,000 in liability coverage. Different states have different costs, with some of the cheapest states being:

  • Vermont with average rates of $121 per month
  • Wyoming with average rates of $136 per month
  • North Dakota with average rates of $133 per month

The most expensive states for renter’s insurance:

  • Louisiana with average rates of $388 per month
  • Oklahoma with average rates of $361 per month
  • Alabama with average rates of $359 per month

How Can I Claim business renters insurance?

You Have to issue a claim with your insurance company. There are a few steps to this:

  • First and foremost, inform your landlord.
  • In cases of robbery or vandalism, file a police report.
  • Document your losses with your insurance company and create an inventory of personal possessions. This will aid you with filing the claim.

How Can You Get Business Renters Insurance?

Getting business renters insurance can typically be done in three ways:

Consult with an insurance company

Nothing is stopping you from contacting insurance companies directly. This way you can work with them to build a policy that fits your needs.

However, make it a point to compare coverage from multiple companies. It will allow you to find the perfect coverage that meets all your needs and budget.

You might also get easily confused and frustrated with all the policy options that they might offer you

Search the online marketplace

You can use online marketplace platforms like Insureon or our agent directory to quickly and easily get quotes and compare multiple carriers that offer business renters insurance.

Online tools can also help you attain customer reviews. Reviews allow you to acquire information on carriers that they don’t necessarily advertise. You will be able to hear from real people about their experience with the companies.

Consult an insurance agent or broker

The most convenient method to find the right business renters insurance is by consulting an insurance agent or broker. As experts in the field, they can use their expertise to find the right coverage based on your situation, budget, and needs.

Furthermore, unlike captive agents, opting for independent insurance agents or brokers can give you access to quotes from multiple carriers. Navigating through different insurance policies and providers can be complicated, especially if it’s your first time doing it. A good insurance agent can act as a guide to help you through the confusion.

So find a local insurance agent to help with your business renters woes today!

In Conclusion

Getting business renters insurance is an effective way to secure your rented business space from any unforeseen circumstances and allow for financial stability. Proper business renters insurance will not just protect you and your employees from any sort of loss or injury, it will also help cover any legal or medical expenses that might come your way. While your landlord might have their own insurance policy in place, they can have limitations that might end up costing you a large sum of money.

Having a dedicated insurance policy in place can help cover those gaps and limitations and provide you with a reliable financial safety net.


Is Renters Insurance For College Students Mandatory?

While it isn’t mandatory for college students to have renters insurance, we strongly recommend considering some type of financial protection for your property. You may think that you don’t have a lot of personal belonging. But their value adds up over time. Buying a laptop, academic supplies, pieces of jewelry, and other items can easily amount to thousands of dollars.

Losing your possessions can be devastating without renters insurance, especially if you don’t have the financial capability to replace them. A student with renters insurance can file a claim and only have to pay a deductible to get their possession replaced.

Does Renters Insurance Cover Roommates?

No, renters insurance generally will not cover roommates unless they’re related to you or their name is listed on your policy. Unrelated roommates are suggested to get their own renters insurance if they are looking to protect their property.

Is Renters Insurance For Mobile Homes Necessary?

Renters insurance for mobile homes works in the same way as any other renters insurance policy. It protects your valuable belongings inside your mobile home.

Do Small Businesses Need Business Insurance?

Business renter’s insurance has uses beyond protecting larger businesses.  If you’re a small business owner renting your business property, a strong renter’s insurance policy is a very good investment. Of course, different business owners would require different business policies, depending on the scale and nature of their business, but any coverage that you can afford is still worth it.

Many small businesses store their assets on-site on their rented business property since they cannot afford warehouse or storage space. For example, a clothing store that keeps all of their stock in a back room. You would need a renter’s insurance policy that protects you from various types of damage that could potentially ruin your stock.

Does Renters Insurance Cover Pet Damage?

Yes! If your friend’s dog damages your sofa or carpet, the cost of damage can be claimed on your content’s insurance under your liability coverage. However, your coverage may exclude certain dog breeds and exotic pets. So, make sure that you understand which breeds of dogs and exotic pets are excluded beforehand.

Your renters insurance also will not cover your pet’s health costs. You will need to get pet insurance in that case.

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