General liability insurance can help cover damage to the property you rent, depending on the situation and the claims occurring. This falls under a specific component of your policy. Be sure your agent knows that you are renting your location. Then, consider a few details about the amount and type of protection you may need. Here is a better look.
What Is Damage to Premises Rented to You?
You may find a clause on your policy that includes this phrase. Damage to Premise Rented To You. This is a type of protection your general liability insurance policy has. This typically falls under your Coverage A component. It helps to cover claims made against your business if you are a tenant. It applies when the landlord or property owner states you caused damage to their property.
When Can This Insurance Coverage Apply?
Always read the details of the plan to learn what the full coverage limits and restrictions are. Generally, this type of coverage will have two specific types of coverage.
First, it helps to cover situations in which a fire occurs on the rented property. In this situation, it may cover claims made against your company when the fire occurs while you are using and renting that space.
Second, it can cover damage claims resulting from “other than fire” losses. This is not uncommon and can include damage caused by any other activity within the space. There are limitations in most cases.
Consider a few examples to show when you may have this coverage.
- Let’s say a fire breaks out in your business due to an equipment failure. You own that equipment. It causes damage to the structure of the building. You rent that building. The landlord wants you to pay for the damages. Your policy may cover these losses.
- Let’s say that an employee causes damage to something within the building. That item is a component of the structure and provided by the landlord. The policy may cover those repairs, too.
However, if a fire occurs through no fault of your own, then you might have no responsibility to pay for structural damage, as that is the landlord’s property, not yours.
The key here is to know that your policy has limits. Be sure to work with your business insurance company to put the right limits in place. And, your general liability insurance coverage should always match any risks present. If you do not inform your agent you rented the space, that may limit your protection significantly. Be sure your policy is accurate.