Business Renters Insurance

Owning and operating a business is more than just a rewarding career move; it’s a responsibility that requires a lot of decision making. One of the decisions you’ll need to make is choosing the right type of insurance to ensure all of your prospective risks are covered. If you conduct business from rental property, such as an office, retail store, or warehouse, it’s critical to have business renters insurance. This type of insurance is unique to companies who have rental property because other types of business insurance may not cover accidents or unexpected events occurring from property you rent, and not own. Think ahead if you’re renting the property where your business resides, so that all of your risks like accidents, property damage, and natural disasters are covered.

What is Business Renters Insurance?

Business renters insurance offers coverage exclusively to businesses who are performing their daily operations from a rented space. This may be a warehouse or factory, office space, or retail space. Whether you’re renting one large retail space or several small offices, you need business renters insurance. The business renters insurance policy offers coverage that other business insurance policies won’t if you don’t own the building where you conduct business.

What Does it Cover?

All businesses have risks, regardless of size, industry, or location. A variety of unexpected events can occur that cause severe financial struggle when you aren’t properly covered. Business renters insurance will cover incidents that happen inside the rental property, such as accidents, fire, flood, or damage to the building or contents as a result of a natural disaster. This means your business supplies, materials, furniture, and equipment will be covered by the business renters insurance policy.

How Does Business Renters Insurance Protect Your Business?

If there is an unforeseen event that occurs inside your rented office or rental space, it can cost thousands of dollars or more to complete the repairs or replace equipment that was destroyed. This means if there is a fire, flood, theft or vandalism, or more severe damage from an earthquake or tornado, much of your business equipment is destroyed.
Computers, servers, and office equipment is expensive; the business renters insurance will offer financial protection if one of these events was to happen in the space you rent. By having business renters insurance, you save yourself from having to cover the cost of repairs out-of-pocket.

Types of Business Renters Insurance

There are two main types of business renters insurance; a replacement cost policy (RCV) and an actual cash value policy (ACV). The two insurance plans will vary in what they cover and how much they cost to obtain.

  • Replacement Cost Policy – The replacement cost policy, or RCV, is going to require a higher premium but will also provide your business with the full cost of replacing or repairing items within your rental space that were stolen or destroyed.


  • Actual Cash Value Policy (ACV) – The actual cash value policy is going to cost you less in regards to your insurance premium, but will also have a lower amount of coverage. Rather than covering the cost immediately, you will be reimbursed for damages, lost, or stolen goods, minus depreciation value.



Protect the business you have worked so hard to build by obtaining the right kind of business insurance. As a company with a rental space. It’s important that you get a business renters insurance policy to avoid handling these costs from your own budget.