If you rent your business space, you'll probably need to carry liability insurance. If the property sustains damage that was your fault, it is this coverage that might be able to help you out. But, what happens if the landlord blames you for the damage, but you can't determine if it was your fault. That will likely involve an ongoing investigation, and perhaps legal proceedings. How will this process work?
Sometimes, landlords take action against tenants because they think the tenant caused the fire. They might want the tenant to bear responsibility for the damage losses. Regardless of the outcome, the costs might mount. In these cases, you can enjoy the help your renters liability coverage can provide.
Commercial Liability Insurance for Properties
Business owners who rent their spaces don't own them. Therefore, they have a duty to take care of the space to the landlord's specifications. To cover these risks, most landlords require tenants to carry property liability insurance. It will apply in cases where you might cause damage to the property and must repay the landlord for the damage. Coverage can help your financial duty to the landlord remain secured.
Still, it is not always easy to determine whose fault an accident was. For example, if a fire were to break out, then the extent of the damage might make the cause hard to determine. The landlord might say that your activities caused the accident. On the other hand, you might counter that you had no responsibility in the accident. Legal action might arise and determining settlements might take time. Along the way, your liability insurance might be able to help you out.
What Happens if a Fire Raises Questions
If a landlord says you caused a fire, that might imply that your liability insurance will pay for the damage. On one hand, it might, as long as the insurer can actually determine that the fire was, indeed, your fault.
This determination might take time. After fires, investigations by insurance companies, fire inspectors and others will likely occur. They might find that the fire resulted from a faulty space heater that you use in the business. In this case, your liability insurance might pay.
Or, perhaps, faulted and deteriorated wiring behind the building's walls sparked the fire. In this situation, your business might have no fault in the accident. Therefore, the landlord's property insurance might pay for repairs.
Often, investigation and insurance settlements might take time. Different parties might disagree on the fire's actual cause, and negotiations might occur. The good thing is, even if you face legal action, your insurance might help you cover arising costs. So, even if the policy never has to pay a full settlement, it might be able to help you out.
Let a Mitchell & Mitchell agent help you find coverage for your commercial rental space, call (888) 512-8878 to get started.
Also Read: 10 Most Common and Costliest Small Business Claims