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The Best Commercial Renters Insurance For 2023

Small businesses operating in rental units may need commercial renters insurance to protect the property from damage and loss. Check out our top 4 providers and learn why they made the list.

    Kate Hoots

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commercial business insurance

Commercial renters insurance protects your business assets against certain types of damage and loss. If you’re operating a small business out of a rented space, such as an office or warehouse, should you sign up for renters insurance?

In this post, we’ll go over the basics of commercial renters insurance to help you decide. And we’ll cover four of the best insurance companies offering commercial renters insurance to small businesses, so you can choose the best one.

Learn More About Our Top Picks

CompanyBest ForNext StepsBest For
The Hartford Small Business Insurance

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  • Same-day quotes
  • Rental coverage + BOP
  • Available in 48 states
  • Same-day quotes
  • Rental coverage + BOP
  • Available in 48 states

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Next Business Insurance

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  • Instant quotes
  • Starting at $17
  • Available in 30 states
  • Instant quotes
  • Starting at $17
  • Available in 30 states

Visit Site

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Thimble

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  • Instant quotes
  • Pricing via personal quote only
  • Available in 20+ states
  • Instant quotes
  • Pricing via personal quote only
  • Available in 20+ states

Visit Site

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Hiscox Business Insurance

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  • Quick quotes
  • Pricing by quote only
  • Available in 49 states + D.C.
  • Quick quotes
  • Pricing by quote only
  • Available in 49 states + D.C.

Visit Site

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Read more below to learn why we chose these options.

What Is Commercial Renters Insurance?

Commercial renters insurance is a type of policy aimed at business owners who rent the space where their business operates. If you’re a business owner who also owns your own facility, you’ll obtain protection with commercial property insurance or a business owner’s policy (BOP) that includes coverage for your property.

Commercial renters coverage is not aimed at property owners. If you’re renting your workspace, warehouse, or storefront, the building you work in will be covered by the building owner’s insurance coverage. Your business assets, including equipment and any products you make and sell, are not covered under the building owner’s insurance policy.

In other words, if the building and your property inside it is damaged by fire, vandalism, or theft, you need commercial renters insurance to cover your property.

Many insurance companies bundle commercial renters insurance into a package known as a business owner’s policy or BOP. You can find great BOP coverage from top insurers such as Chubb, Travelers, and Nationwide. However, a BOP policy often includes coverage for the physical building, which renters probably won’t enjoy paying for and don’t need.

For that reason, in this post we focus on insurance companies that offer commercial renters coverage without including coverage for the physical space.

What Does Business Renters Insurance Cover?

Commercial renters insurance policies can vary a bit, so it’s important to talk with your contact at the insurance company you choose to make sure you understand your coverage. In general, business renters insurance should cover lost, stolen, or damaged company property.

Here are some examples:

  • Your business inventory
  • Computers and other electronic equipment stored in the rental property
  • Office or warehouse furnishings
  • Damages to the location resulting from your business operations, such as smoke damage from a fire caused by your equipment

Basic commercial property insurance typically does not cover intentional damage or damage caused by natural disasters such as floods and earthquakes. If you use vehicles to conduct your business, you’ll need separate policies for each vehicle.

Is Commercial Renters Insurance Required?

Commercial renters insurance is not required by law. However, it’s common for landlords to require tenants to obtain coverage. Make sure that you understand and conform to the terms of your lease, including insurance requirements.

The Best Commercial Renters Insurance For Small Business

The best commercial renters insurance offers small businesses coverage they can count on, including an easy-to-navigate and dependable claims process. Some small business owners might prefer renters insurance that’s available in a bundled policy, while others may be looking for a single policy.

Whatever your particular needs, we think insurance companies like The Hartford, Next, Thimble, and Hiscox offer the best options for commercial renters insurance. Read on to decide which of these options best fits your needs.

1. The Hartford: Best Commercial Renters Insurance For Customer Satisfaction

The Hartford Small Business Insurance

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Read our Review

Pricing

Varied. Average general liability is $88/month

Types of insurance offered

30+

Time to receive quote

Usually same-day

Pros

  • Fast, free quotes
  • 24/7 claims service
  • Many coverage options

Cons

  • Not available in Alaska or Hawaii

Why We Chose The Hartford For Commercial Renters Insurance

The Hartford is one of the biggest insurance companies in the country, available in 48 states. And, it’s ranked Number One in customer satisfaction in the J.D. Power 2022 study. With a strong reputation and a variety of policies aimed at small business, we think The Hartford definitely deserves its spot on this list.

The Hartford Pricing

Like most insurance providers, The Hartford provides personalized quotes for business customers. Personalized quotes are available online or by phone, and you can expect to receive a quote the same day you request it.

While The Hartford does offer stand-alone business property coverage, the company steers customers toward a bundled business owner’s policy (BOP) that combines general liability, business income insurance, and commercial property coverage (including rental insurance coverage). The Hartford says the average annual premium for its BOP is $3,125 or $261/month.

The Hartford Features For Commercial Renters Insurance

Commercial property coverage from The Hartford covers losses from:

  • Fire
  • Burglary
  • Theft
  • Wind
  • Lightning

What will be protected under a property policy from The Hartford? Your physical assets, such as the following, will be protected:

  • Equipment
  • Tools
  • Inventory
  • Furniture
  • Personal property

The Hartford’s BOP also includes business interruption insurance. That means that if you are unable to operate your business because of property damage, your lost income should be covered too.

Get Started With The Hartford Small Business Insurance

Read our in-depth review

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2. Next: Best Pricing On Commercial Renters Insurance

Next Business Insurance

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Pros

  • Discounts on multiple policies
  • Strong mobile app
  • Instant quotes

Cons

  • Limited specialty coverage options

Why We Chose Next For Commercial Renters Insurance

We love Next for its instant quotes and easy application process. And Next pricing is some of the best available, with commercial property insurance that can start as low as $17/month.

Next Pricing

Next’s commercial property insurance could be a cost-effective choice, with coverage starting $17/month. The company says that 50% of its customers pay between $25-$45/month.

You can visit Next’s website, enter some basic information about your business, and receive an instant quote for coverage.

Next Features For Commercial Renters Insurance

Next’s commercial renters coverage comes through a customized commercial property policy. You can design your policy to cover:

  • Business goods and gear
  • Inventory
  • Buildings
  • Equipment breakdowns
  • Business income interruptions

Next policies cover damage from water, fire, wind, vandalism, and other risks. That includes damages related to wildfires, tornados, and windstorms. Next does not offer protection for earthquakes, volcanoes, and flood.

Get Started With Next Business Insurance

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3. Thimble: Best Commercial Renters Insurance For Changing Coverage

Thimble

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Pros

  • Adjustable coverage
  • Event planners accommodated
  • Instant quotes & coverage
  • Strong mobile app

Cons

  • No phone support
  • Limited additional policies

Why We Chose Thimble For Commercial Renters Insurance

Some small businesses have changing insurance needs over the course of a typical year. Maybe your business is cyclical or seasonal, or perhaps you just experience sharp ups and downs in your inventory. Thimble can be a great choice for those types of business, because this is one insurance company that lets you adjust your coverage periodically.

Thimble Pricing

Like most insurance companies, Thimble provides pricing information by individual quote only. What you’ll pay for renters insurance coverage will depend on factors such as your business size and location.

Fortunately, with Thimble you can access almost instantaneous quotes and obtain coverage fast.

Thimble Features For Commercial Renters Insurance

You can purchase Thimble coverage by the job, by the month, or by the year. Thimble also allows you to change your coverage, pause, or cancel it as needed.

Thimble also allows you to pay for your coverage annually or monthly, with no added fees tacked on for spreading out your payments. You can also add additional coverage from Thimble, including a business owner’s policy (BOP), business interruption, product liability, and more.

Use the highly rated Thimble app for iOS and Android to manage your account.

Get Started With Thimble

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4. Hiscox: Best Commercial Property Insurance For Multiple Locations

Hiscox Business Insurance

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Pros

  • Fast quotes+
  • Apply online
  • Available in 49 states

Cons

  • Limited policy range
  • May not be suitable for large businesses

Why We Chose Hiscox For Commercial Renters Insurance

Hiscox commercial property coverage protects your business equipment whether you’re in the office or on a job site. That includes computers and audio visual equipment, trade show booth items, and more. With a Hiscox policy, your business property is covered no matter where you’re at.

Hiscox Pricing

You can get a quick quote from Hiscox online or via phone. If you go the online route, you can be fully insured within 10 minutes.

Hiscox Features For Commercial Renters Insurance

When you purchase commercial property insurance from Hiscox, you gain some impressive features. In additional to being covered in and out of the office, you’ll also gain protection for lost business income and added expenses, electronic data, and accounts receivable.

Hiscox also covers any tenant improvements you may make to rental facilities. For example, if you install new carpeting, build storage, or build a wall with the landlord’s permission, it’s covered under your Hiscox policy.

Your commercial property policy also includes up to $2,500 for each location for personal items that are damage or destroyed.

You won’t see any deductions for depreciation. However, a commercial renters policy from Hiscox will not offer protection from dishonesty, faulty utilities, errors or omissions, or computer testing, installation, and repair. As usual, damage from earthquakes, floods, and volcanoes is not covered.

Get Started With Hiscox Business Insurance

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Our Methodology For Choosing The Best Commercial Renters Insurance

We looked at more than 20 insurance providers, looking for the best commercial renters insurance options. We left a number of good insurance providers off this list, including a number of companies we consider to be among the best insurance providers for small business.

So why did we leave them off this list? Commercial renters insurance can be tricky to track down. Few providers offer standalone renters insurance for small businesses. Many combine commercial property coverage with insurance for the physical brick-and-mortar location itself. If you’re a renter, you probably don’t want to pay for coverage you don’t need, including protection for the building you’re renting.

As always, we also considered unincentivized reviews from actual customers on sites like the Better Business Bureau, G2, and Consumer Reports. We want to make sure that actual users’ experiences with insurance companies are provided, and we use those experiences as a ranking factor whenever possible.

How Much Does Commercial Renters Insurance Cost?

Insurance pricing, in general, can be frustrating, and the cost of commercial rental insurance is no exception. In most cases, you will need to speak to an insurance provider or fill out an online form and provide general or specific information about your business. Pricing will depend on factors like where you’re located, how long you’ve been in business, how many employees you have, your industry, your claims history, and so on.

Industry experts provide a range of averages for small business rental insurance coverage. The outlook is especially murky for commercial renters insurance, which often goes by a different name, such as a BOP or commercial property coverage, and includes different coverage.

According to InsuranceTrak, you can expect to pay $250-$450 per year to cover your business property and equipment.

Other Types Of Business Insurance You Need

Insurance shopping can be complicated by the fact that not all small business owners are aware of the types of coverage available. They may know even less about what types of coverage are essential.

Here are some common types of coverage you may want to look into, in addition to commercial renters property coverage.

(There are also some specific types of coverage, such as flood insurance or earthquake coverage, that you may want to add, depending on your location. Check with your insurance provider to see what’s recommended for your area.)

General Liability Insurance For Small Business

Often known as “slip and fall” coverage, general liability helps protect your business when someone outside your organization claims bodily injury or property damage because of your business.

If you’re looking for liability coverage, you can start your search with the providers on our list of the best liability coverage for small business.

Professional Liability

Sometimes known as errors and omission insurance, or E&O, professional liability coverage protects your business from claims related to mistakes in the services your business provides.

Workers Compensation

One of the only types of insurance typically required by law, workers compensation helps employees after a work-related injury or illness.

Commercial Automobile

If you or your employees drive company-owned vehicles, you’ll be required to add commercial auto insurance. Your commercial auto policy provides coverage for property damage and bodily injury if the driver is in an accident behind the wheel.

Cybersecurity Coverage

If your business suffers a data breach, cyber liability insurance can help you recover. This type of policy is sometimes known as data breach insurance.

Business Income

Also known as business interruption coverage, this type of policy can help you when you’re unable to conduct business because of covered property damage. That typically includes damage from theft, fires, and so on.

Business Owners Policy

Be sure to ask your insurance provider about a bundle of policies typically called a business owners policy or BOP. Although a BOP often combines general liability insurance and commercial property, it can also include additional coverage, such as business insurance income. Although you’re paying for multiple policies, a BOP usually includes a discount that makes it relatively cost-effective.

FAQs: Commercial Renters Insurance

Is business renters insurance required?

Business renters insurance is typically not required by law. However, many landlords do require it as a term in the lease.

How much does renters insurance cost for business?

The cost of commercial renters insurance can vary widely, depending on your location, business type, and size, number of employees, and claims history. Expect to pay somewhere between $250 and $450 per year for commercial renters insurance.

What does commercial renters insurance cover?

Most commercial renters insurance will cover damages to your business inventory, computers and electronic equipment, furnishings, and damages to the building caused by your business operations. Personal property is generally not covered. Damage from natural disasters or from faulty utilities may not be covered.

In Summary: The Best Commercial Renters Insurance For Small Business

  1. The Hartford Small Business Insurance:
    • Same-day quotes
    • Rental coverage + BOP
    • Available in 48 states
  2. Next Business Insurance:
    • Instant quotes
    • Starting at $17
    • Available in 30 states
  3. Thimble:
    • Instant quotes
    • Pricing via personal quote only
    • Available in 20+ states
  4. Hiscox Business Insurance:
    • Quick quotes
    • Pricing by quote only
    • Available in 49 states + D.C.
Kate Hoots

Kate Hoots

Expert Analyst & Reviewer at Merchant Maverick
An expert in business banking, consumer finance, and online payments, Kate Hoots has been writing about small business commerce since 2020. A former journalist for the West Linn Tidings and the Wilsonville Spokesman, Kate boasts wide experience in business leadership and communication. She has a degree in English Literature from Lewis & Clark College.
Kate Hoots
View Kate Hoots's professional experience on LinkedIn.
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Sources

  1. The Hartford Ranks No. 1 in Customer Satisfaction (Accessed 04/11/2023) — The Hartford News Release
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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.

Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.

Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.

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