Commercial General Liability manages a rental agreement with two different types of insurance coverages. The first is the protection I described above of $1,000,000 per incident restrict. This protection, however, only gets the renter half way there. The per incident restrict doesn�t protect for actual areas of a developing that the renter rents or rents. It will pay for only the part of the developing that is not rented by the renter. An example might help describe this better.
Example:
Let�s say that company XYZ, Inc rents device A of a four device office. If XYZ, Inc causes a flame that expands loss to both device A and device B, the per incident part of their insurance plan plan will only protect loss to device B. It will not pay for loss to device A because it is rented or rented by them.
Damage to Rented Property (sometimes called Fire Legal Liability) is the other protection a renter needs when they lease area. This protection is often involved in a common responsibility plan as well but many times is not specifically described in rental agreements. In the example above, Harm to Rented Property would be the protection that would pay for device A that XYZ, Inc. rented.
The purpose I bring this up as a blog article subject is because the Harm to Rented Property is often neglected. Since it is left out of many rental agreements, companies don�t think to examine with their insurance plan provider about the protection. Your common professional common responsibility plan will only include $100,000 to $500,000. If company XYZ, Inc. in the above example rented a huge area, this may not be enough protection, and they could pay for some of the loss out of wallet.
So next occasion you lease an area for your company be sure to have Fey Insurance Services evaluation the rental and verify your professional common insurance plan boundaries to create sure you are protected in case of a huge flame.
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