Does a Business Tenant Need Commercial Property Insurance?

Yes, if you own anything inside the space. The landlord’s building policy protects the landlord’s interest, not your inventory, computers, furniture, or the improvements you paid for. Your lease may also require you to carry set limits and show proof of coverage.

Read the lease’s insurance and restoration clauses to see who insures fixtures, tenant improvements, and shared areas. Ask the insurer to list the leased address and your business property on the policy, and check limits, valuation, business income, and whether you’re responsible for glass or signs. General liability that the lease requires is a separate policy from property insurance.