About Business Renters Insurance

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There are different functions and types of renters insurance as well as many considerations and misconceptions potential business owners have to take into account when looking at the insurance needs of their business. Identification
Business Renters Insurance is a type of commercial insurance policy purchased by business owners who rent or lease the property their business operates from. This type of policy is usually a part of a larger package of polices maintained by the business owner. It is common for the package to include business disruption and various liability policies.

Function
Business renters insurance covers various combinations of the following liabilities:
* General and employer liability
* Boiler and machinery
* Business interruption
* Environmental

Types
Business renters insurance policy types fall into one of three categories:
* Liability insurance - which handles liability in accidents or lawsuits against the business
* Property and building policies - which handles liability caused by the business to the property or its owners
* Business assets and equipment policies - which handles liability against items or equipment owned by the business

Considerations
Take the following issues into consideration to determine the amount of liability you will need to cover the following:
* Your legal obligations under employer liability; if you have four or more employees you are required to have a minimum amount under state and federal regulations
* The amount of general liability that covers theft, damage and personal injury that occurs on the property of the business
* The amount of boiler or maintenance insurance to cover costs for machinery or repairs not covered by the property owner
* The ongoing costs incurred by your business should there be interruptions while doing business, such as lost orders or severe damages
* The cost of cleanup or repairs if there is an environmental accident; especially if your business uses chemicals or hazardous materials
* The minimal amount and types of coverage required by government regulations as well as industry standards
* The deductible amount your business can safely handle before coverage takes effect
* If the insurance will cover the actual cash value of what the business owns or if the policy will only cover replacement costs

Misconceptions
When a business is just starting there are many misconceptions business owners have about insurance needs. Here are the top three and why they must be avoided:
* The business is too small or doesn't make much money so it can not be sued. All businesses and their owners can be sued. If a judgment is issued against the business or owner, it will not be settled until paid in full. This means that all assets of the business, and sometimes the owner, can be taken until the judgment is paid
* The business is a corporation so there is no personal liability for the owners. Liability protection under corporate law applies to individual investors and officers of the corporation. All states have laws which can remove some or all of this protection against judgments, usually more effective against smaller corporations and startups
* The business will survive if the primary owner departs. Small or family owned businesses become part of the estate if the primary owner dies. The business then becomes responsible for that persons share of the business and estate. Most often this results in the dissolution of the business.