I don’t own the building, why do I have to give you that information?
Businesses are almost always required to carry General Liability when leasing an office space. This coverage protects both the tenant and landlord against claims arising out of the use of the premises.
I am constantly getting pushback from clients when they are completing the application for General Liability. They never want to complete the section asking for information about the building they are working out of, but they don’t realize that underwriters are not able to quote this without the building information!
Landlords require General Liability because businesses often have clients or vendors onsite at the space they are leasing. The landlord is not always made aware of these visitors that are coming to their building. If one of these visitors were to get hurt, the business is liable because the visitor is onsite for them.
Most General Liability policies offer the option to cover Business Personal Property (ex - laptops, desks etc.). This protects property from fire, water damage or theft. If a business is operating out of an older building with older wiring, plumbing or limited security - the likelihood of property damage is much higher.
It is hard to take off my insurance hat when I leave the office and I often come across things that trigger me to think of different exposures. I compare myself to Ben Stiller’s character in the movie Along Came Polly, he played the part of an insurance underwriter and was always calculating risks. I recently took some time off work to travel with my family. We took a beautiful train ride through Norway and saw adorable cottages on the countryside with thatched roofs, some even had some grass growing off the top. My insurance hat came on and I immediately thought of how expensive their General Liability insurance must be. Could you imagine how flammable this is during a drought?
Conclusion: You will need to provide the building information to obtain General Liability and Property coverage.