When you rent office or warehouse space for your business, you will most likely be required to leave a security deposit of some sort with your landlord. That security deposit could be a hefty amount of money that you will undoubtedly want back once your lease is up, and you move on to a different space. But getting that money back could be tricky if you do not read your lease agreement fully.
Before you start moving your equipment and supplies into your new space, take some time to thoroughly review your lease agreement. There may be some requirements in it that you glossed over the first time you looked at it. Are you required to keep up with building maintenance? Does your landlord ask you to clean the carpets on a regular basis? And most importantly, find out what his insurance covers and what it does not.
Your landlord’s insurance will most likely cover the building itself and anything that is used to keep the building running properly. Your business insurance will cover your own equipment and give you the liability coverage you need. But there are some times when the line is blurred between who is liable for what in a rental property. What happens if the roof collapses due to a storm? Or if your equipment breaks down and leaks fluid all over the floor?
In order to get your security deposit back at the end of your stay, find out exactly what is required of you as a business owner. Review your lease and talk with your landlord about liability. Of course, call us with any questions about how your business insurance will cover you in a rental property. We will review your case and see if the insurance you have will be enough to cover your business while you are in the rental.