Signing a commercial lease in or near Buford, GA involves much more than agreeing to monthly rent payments. Hidden within the fine print are insurance requirements that can significantly impact your business expenses and operations. At Town & Country Insurance, we help business owners understand these lease obligations before they become costly surprises down the road.

Common Insurance Requirements in Commercial Leases

Most commercial leases require tenants to carry general liability insurance, typically ranging from $1 million to $2 million per occurrence. Property insurance is another standard requirement, covering your business contents and sometimes requiring coverage for leasehold improvements. Many landlords also demand commercial auto insurance if your business uses vehicles. Workers’ compensation insurance becomes mandatory if you have employees, and professional liability coverage may be required for service-based businesses.

Additional Landlord Protections

Beyond basic coverage amounts, landlords often require themselves to be named as additional insured parties on your policies. This protects them from lawsuits arising from your business operations. Some leases include waiver of subrogation clauses, preventing your insurance company from suing the landlord if they contribute to a covered loss. Certificate requirements mean you must provide proof of coverage before moving in and maintain continuous coverage throughout your lease term.

Financial Impact on Your Business

These insurance requirements directly affect your operating costs and cash flow. Higher coverage limits mean higher premiums, and specialized coverage types add to your monthly expenses. Failure to maintain required coverage can result in lease termination or the landlord purchasing expensive coverage and billing you for it.

Before signing your next commercial lease, review all insurance requirements carefully. Contact Town & Country Insurance, serving Buford, GA, to ensure your coverage meets lease obligations while protecting your business interests.