I'm renting a building space, do I include the building's insurance to my own?

What kind of business insurances do you need? If you're renting a building space, are you responsible for the building insurance as well? Insurance broker Richard Labrador answers.

I'm renting a building space, do I include the building insurance to my own? Credit: Asad Photo Maldives from Pexels

Key Points

While you are not responsible for the building insurance, the owner may pass on costs to you.
The property manager may want to be included as an 'interested party' in your insurance.
The insurances you need include public liability; contents, fixtures and fittings; glass replacements and; workers' compensation.

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"While you aren't responsible for the building insurance of the space you are renting, the costs may be passed on to you," insurance broker Richard Labrador shares.

This inclusion may be included in your lease agreement with the landlord.

Labrador also shares that the property manager may also require you to add them as an 'interested party' in your own business insurances.

"This means that they might also have claims if their property is damaged."

Labrador shares that there are four types of insurances you must have for your business:

Public liability

"Public liability is something that is always included in lease agreements just in case there are incidents such as fire."

He states that public liability insurance protects the business owner from financial loss due to property damage of third-party injury due to human error.

Stock contents, fixtures and fittings

This type of insurance protects the assets of the business.

Glass replacement

This insurance is required if the business has glass panels or windows.

Workers' compensation

"You need this to protect yourself and your staff. This insures medical bills, rehabilitation costs and wages if one is injured at work."

This insurance is a statutory requirement, especially when you are paying $7,500 in annual wages.

"If someone gets injured at work and you don't have this insurance, the government will impose fines and penalties."

Disclaimer: The information in this article serves only as a guide. For additional information regarding your particular issue or situation, consult with legal, financial and/or tax experts.