Imagine walking into your storefront or office one morning and finding it flooded, burned, or looted. Your landlord is sympathetic. Their insurer is already involved. You assume you’ll be back in business shortly—until you realize: none of that coverage may apply to you.

This is the moment too many business owners learn the hard way that their landlord’s insurance policy typically doesn’t cover their business at all. Typically not the equipment. Not the inventory. Not the lost revenue. Not the lawsuit from the customer who slipped on the wet tile.

In this deep dive, we’ll debunk the myth that commercial tenants are protected under their landlord’s insurance, expose the financial vulnerabilities many don’t see until it’s too late, and walk through the essential policies business owners need to operate with confidence. If you’re searching for clarity on business insurance while leasing space, this is the guide that goes beyond the basics.

Commercial landlord insurance is primarily designed to protect the landlord’s investment—the building itself.

Typical landlord policies cover:

• Structural damage to the building

• Fixtures (roof, HVAC, plumbing)

• Common areas, if applicable

• Liability for accidents in shared spaces (sometimes)

Notice what’s missing: your business.

If you’re leasing a space in a retail plaza, office park, or industrial warehouse, your landlord’s policy typically doesn’t reach past the walls. It typically won’t replace your computers or restock your shelves and generally won’t cover legal fees for claims arising from your operations, unless specifically required by the lease and endorsed onto the policy. It’s the equivalent of your apartment building having coverage for the structure—but not your furniture or personal items.

That’s not just a risk—it’s a significant protection gap.

Leases often include an insurance clause—usually in legalese that’s skimmed, not studied. Hidden in there is language that shifts nearly all liability to you:

• “Tenant shall maintain general liability insurance…”

• “Landlord shall not be responsible for loss of tenant property…”

• “Tenant agrees to indemnify landlord against claims arising from tenant’s operations…”

Translation: Generally speaking, you’re responsible for your stuff, your people, your customers, and your income. The landlord typically takes care of the walls. That’s it.

And yet, many business owners wrongly assume “I’m in a professional building, I’m covered.” It’s not just a mistake—it’s a dangerous false sense of security.

1. Fire in a Shared Building

Your neighbor’s faulty wiring sparks a fire. Your space suffers smoke and water damage. The landlord’s insurance fixes the walls. In most cases, your landlord’s policy won’t apply—it’s typically your liability. No business income. No reimbursement. Unless you have your own policy.

2. Slip and Fall Lawsuit

A delivery driver trips on a cable inside your shop and suffers a serious injury. They sue. Your landlord’s policy doesn’t apply—it’s your liability. If you don’t carry general liability coverage, your business is on the hook for medical costs, legal fees, and settlements.

3. Power Surge Destroys Tech

An electrical surge wipes out your computers and POS system. The landlord shrugs. Your operations stall. Your data is lost. Without BPP and equipment breakdown coverage, you may pay out of pocket—or face significant costs.

4. Roof Damage Halts Operations

A storm rips off the roof. Repairs take weeks. You can’t open. The landlord may carry loss-of-rents coverage—for themselves. You? You may need business interruption insurance to help replace revenue and keep your team paid.

Here’s what you actually need if you operate in a leased commercial space:

General Liability Insurance

Commonly required by landlords and contracts, and strongly recommended. Can cover third-party bodily injury, property damage, legal fees, and court judgments. Coverage depends on policy terms.

Business Personal Property (BPP)

Can cover your inventory, electronics, furniture, tools—everything that makes your business operational. This coverage bridges the gap between the building and your business.

Business Interruption Insurance

If you’re forced to close due to a covered direct physical loss (e.g., fire), business income coverage can help replace lost income and certain continuing expenses, subject to waiting periods, limits, and exclusions.

Tenant Legal Liability

(Often provided under the GL as Damage to Premises Rented to You or by endorsement) helps address damage to the landlord’s space caused by your operations, subject to policy terms, limits, and exclusions.

Improvements and Betterments Coverage

Upgraded lighting, built-in cabinetry, installed displays—if you added it, you may own it or be responsible for it. Consider insuring those investments.

Workers’ Compensation

Generally required for non-construction employers with 4+ employees; construction employers with 1+ employees must carry coverage. Requirements and exemptions vary—confirm what applies to you.

Cyber Liability (increasingly essential)

If you handle customer data, process payments, or use digital systems, cyber coverage can help cover losses from hacking, fraud, and costly downtime.

Commercial Umbrella Policy

Adds extra protection when basic liability limits are exhausted. Think of it as your business’s insurance parachute.

Florida isn’t just sunshine and commerce—it’s also:

• Hurricane-prone: Business closures due to storm damage are frequent and expensive

• Litigation-heavy: High lawsuit frequency means liability coverage is a must

• Insurance-volatile: Some carriers have exited or adjusted appetite in recent years, and many have raised rates

• Tourism-fueled: More foot traffic means more exposure to risk

If you’re operating in Pinellas County or the St. Petersburg area, skipping essential coverage isn’t just risky—it’s borderline reckless.

Before you ink your next lease, sit with your insurance agent and identify:

• Required minimum liability limits

• Additional insured endorsements

• Waivers of subrogation

• Responsibility for property damage or injuries

• Insurance certificate requirements

A good lease review can uncover liabilities you didn’t even know you were accepting. Pair that with tailored insurance, and you’re operating from a position of strength.

• Assuming “I’m in a big building, someone else has this handled”

• Buying the cheapest policy without understanding exclusions

• Not increasing coverage as business grows

• Ignoring lease mandates about coverage limits

• Failing to document improvements or inventory values

Insurance isn’t a one-and-done event. It evolves with your business.

You wouldn’t operate without electricity. You wouldn’t operate without internet. So why operate without the right insurance?

Your landlord’s policy is not a substitute for your own protection. It’s a boundary, not a blanket. And if you’re leasing commercial space, it’s time to take insurance seriously—not because it’s required, but because your business depends on it.

At Comegys Insurance Agency, we help business owners in Florida and other states where we’re licensed understand what they may need to thrive—not just survive—in today’s risk-heavy environment.

Let’s talk. We’ll review your lease, evaluate your risks, and help you explore coverage options that fit your needs.

Disclaimer: This article is for informational purposes only and does not constitute legal or insurance advice and is not a guarantee or offer of coverage. Coverage availability, terms, limits, and pricing vary by carrier, policy, industry, location, and applicable law. Requirements (including workers’ compensation) vary by business type and headcount. For guidance on your specific situation, consult a licensed insurance professional and, for lease/contract language, your attorney.

Comegys Insurance Agency – Where clear coverage meets smart business.