When is evidence of Commercial Property insurance required?
Find out when and why your small business may need evidence of commercial property insurance.
Updated May 29, 2023.
According to 2021 research by the National Fire Protection Association, there was about $15.9 billion in property damage due to fires in the United States. For business owners, statistics like this highlight the importance of having commercial property insurance. This policy can help shield you from serious financial losses caused by risks like fires or theft.
So, the following parties may require insurance evidence:
1. Landlords
If you are under a commercial lease agreement, a landlord may request this. It's a method to pass on some of the liability to you and help reduce their risk if any property damage occurs.
2. Lenders
If you want to get financing for your business property, it may be part of the deal that you provide evidence of commercial property insurance to the lender. This can provide added protection for the lender's investment in your business and helps to ensure that you have the financial resources to recover from unforeseen incidents.
3. Local or state regulations
Depending on your industry and location, there may be regulations requiring businesses to carry certain types of insurance, including commercial property insurance. For instance, if you own a restaurant, you may need to carry liability insurance to protect against illness claims for the food you serve.
» Learn how commercial property insurance can protect your business
Meet your Commercial Property insurance requirements with NEXT
Providing evidence of commercial property insurance can help to instill confidence in landlords, lenders and regulatory bodies. It demonstrates that your business is both financially responsible and able to handle unexpected events.
At NEXT, we offer a range of personalized insurance solutions that can help you meet your business needs. Get an online quote in less than 10 minutes, and you'll have instant access to your certificate of insurance once you purchase coverage so that you can share it 24/7 with the NEXT app.
