Author Topic: Business liability insurance  (Read 2099 times)

MMMdude

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Business liability insurance
« on: April 07, 2012, 12:20:38 PM »
My girlfriend is going to start renting a very small space for a photo studio (under $500 monthly) as her part time hobby is starting to make a decent amount of side income and she is hoping a space will make it continue to grow and the amount of props she has is taking over the house.  Anyways the landlord sent over the lease and I was expecting a 1 or 2 page thing but it is a whopping 35 pages long.  One of the things they ask for is $2Mil liability insurance.  His email then states that if we agree with the lease to sign it and send first month's rent to him and no mention of proof of the aforementioned insurance.  So my questions are:

1. Can landlord ask for proof of insurance down the road and if we can't provide that, kick us out of the space?  I would think obviously yes since we are in breach of contract, but would we be on hook for remaining lease payments if not in the space?
2.  Generally, how much would liability insurance be for a business?  My gf has about 8 - 15 customers a month and if it is too expensive, it could make renting the space impractical given the small size of her business at this point.
« Last Edit: April 07, 2012, 12:23:26 PM by MMMdude »

arebelspy

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Re: Business liability insurance
« Reply #1 on: April 07, 2012, 09:11:27 PM »
All contracts are negotiable. Remove that provision if it's a hindrance.
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aressiont27

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Re: Business liability insurance
« Reply #2 on: October 03, 2012, 03:22:57 AM »
All claims inherit a legal hussle. There is a bypart complication in your case, Should be better to consult an attorney before proceeding.

Flynlow

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Re: Business liability insurance
« Reply #3 on: October 03, 2012, 05:28:17 AM »
I had a similar experience, renting a small shop space to store my cars/bikes and have a place to work on them.  The lease was set up for a business, and had liability insurance provisions.  I read through and highlighted the parts I had questions on, and the agent (who was very helpful and easy to work with) struck all of them, no questions asked.  He said it was just a standard business lease, so a lot of the things in there wouldn't apply for my situation, but they only have the 1 standard form.  Pretty much everyone else in my industrial park was a business.

Also, just to give you a data point, the requirement on mine was $1 million liability insurance, I called around and got a couple quotes, most came in around $500/year, so even if you do have to get it, it isn't TOO bad.  In my case it ended up not being required.

Cheers. 

matt_g

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Re: Business liability insurance
« Reply #4 on: October 03, 2012, 05:49:14 AM »
I've been in business for myself for 8 years.  Every contract is negotiable.  Get a check ready, be ready to sign, have everything all set, under 1 condition, he remove that from the lease.

That being said, you might also want to get a liability policy.  Just call up an insurance broker, quotes are free.