How much general liability does my lease require?

Most commercial leases and nearly every lender ask for $1,000,000 per occurrence and $2,000,000 aggregate, with the landlord or lender named as an additional insured and a certificate on file. Read the insurance article of the lease before you buy the policy — the limits, the additional-insured wording and the waiver of subrogation are all specified there.

What is ordinance and law coverage and do I need it?

If an older building is damaged badly enough, the city will not let you rebuild it the way it was — you have to meet current code. Ordinance and law pays for the undamaged portion that has to be demolished, the increased cost of construction, and the demolition itself. On a 1970s office or retail building in Jackson or Vicksburg it is the difference between a rebuild and a settlement that does not cover one.

How is business income calculated?

It replaces net profit plus continuing expenses — payroll, rent, loan payments — during the period of restoration, usually with a limit and a stated number of months. On the Mississippi Coast, plan the restoration period on the assumption that every contractor is busy after a storm. Twelve months is a realistic figure; three is not.

Can I insure a building my tenant occupies?

Yes. You insure the building and your own liability as owner; the tenant insures their business personal property, their liability and usually their tenant improvements. The lease says who does what. A mismatch between the lease and the policies is the most common problem we see on a commercial file.

Does wind coverage work differently on commercial property?

The same percentage-deductible logic applies, and on the Coast admitted carriers frequently exclude wind entirely, leaving the Mississippi Windstorm Underwriting Association or a surplus-lines wind policy to cover it. Expect two policies and two deductibles on a coastal commercial building.

Commercial property

Three numbers decide a commercial policy

The building limit, the liability limit, and how long you can survive not operating. Get those right and the rest is paperwork.

Get Instant Insurance Quote

Building limit

Replacement cost

What it costs to rebuild at today’s prices, not the purchase price and not the assessed value. Add ordinance and law if the building predates current code.

General liability

$1M / $2M

Per occurrence and aggregate. What leases and lenders ask for, with additional-insured status and a certificate.

Business income

12 months

Profit and continuing expenses through the period of restoration. After a named storm in Mississippi, that period is long.

What Continental will ask you for

Construction type, year built and square footage. Roof age and type. Whether there is a sprinkler system and a monitored fire alarm. The electrical service and when it was last updated. Distance to the fire station and the nearest hydrant — these set the protection class and move the premium more than anything else on the list.

Then the occupancy: what happens inside the building. A law office, a restaurant with a fryer, a warehouse with a forklift and a paint booth are three completely different risks in the same square footage.

And the lease, if there is one. It dictates who insures the building, who insures the improvements, what limits the tenant must carry and who has to be named. Send it — an insurance programme that contradicts the lease is a default nobody notices until there is a claim.

Get Instant Insurance Quote

Vacant commercial is its own problem

An empty retail bay or office building carries the same vacancy clause a house does, and a bigger exposure: copper, HVAC units on the roof, and a building nobody visits. Admitted carriers largely will not write it, so vacant commercial usually goes to surplus lines, peril by peril, on a three-, six- or twelve-month term.

If you are holding a building between tenants, treat the insurance as a separate decision from the moment the last tenant hands the keys back — not when the renewal comes round. More on vacant property.

Get Instant Insurance Quote

Questions

How much general liability does my lease require?: Most commercial leases and nearly every lender ask for $1,000,000 per occurrence and $2,000,000 aggregate, with the landlord or lender named as an additional insured and a certificate on file. Read the insurance article of the lease before you buy the policy — the limits, the additional-insured wording and the waiver of subrogation are all specified there.
What is ordinance and law coverage and do I need it?: If an older building is damaged badly enough, the city will not let you rebuild it the way it was — you have to meet current code. Ordinance and law pays for the undamaged portion that has to be demolished, the increased cost of construction, and the demolition itself. On a 1970s office or retail building in Jackson or Vicksburg it is the difference between a rebuild and a settlement that does not cover one.
How is business income calculated?: It replaces net profit plus continuing expenses — payroll, rent, loan payments — during the period of restoration, usually with a limit and a stated number of months. On the Mississippi Coast, plan the restoration period on the assumption that every contractor is busy after a storm. Twelve months is a realistic figure; three is not.
Can I insure a building my tenant occupies?: Yes. You insure the building and your own liability as owner; the tenant insures their business personal property, their liability and usually their tenant improvements. The lease says who does what. A mismatch between the lease and the policies is the most common problem we see on a commercial file.
Does wind coverage work differently on commercial property?: The same percentage-deductible logic applies, and on the Coast admitted carriers frequently exclude wind entirely, leaving the Mississippi Windstorm Underwriting Association or a surplus-lines wind policy to cover it. Expect two policies and two deductibles on a coastal commercial building.

Buying or leasing the building through Bedford Realty? Tell your agent and the insurance submission goes out with the MLS data already in it.

Put the building in front of an underwriter

Continental Brokers Inc. places commercial property, general liability and business income across Mississippi, including the coastal wind market.

Get Instant Insurance Quote

What Mississippi actually requires

Insurance products are offered and placed by Continental Brokers Inc., an independent insurance agency. Bedford Realty, LLC is not an insurance agency, does not sell insurance, and receives no commission on policies placed. Coverage is subject to underwriting approval, policy terms, conditions and exclusions.

Disclosures

Licensing. Bedford Realty, LLC is a real estate brokerage licensed by the Mississippi Real Estate Commission. It is not licensed as an insurance producer and does not solicit, negotiate or sell insurance. Continental Brokers Inc. is an independent insurance agency and is solely responsible for the placement of any coverage, for the accuracy of any quote, and for the advice it gives. Questions about a policy, a premium or a claim should go to Continental Brokers Inc. on (866) 386-4136.

Your information. What you enter on this site is sent to Continental Brokers Inc. only after you authorise it, and only for the purpose of obtaining quotes. Photographs are stored encrypted, scanned for malware, and shared with the agency through links that expire. We do not sell your information, and we do not share it with anyone other than Continental Brokers Inc. and the carriers they approach on your behalf. To have a submission deleted, email collier@bedfordrealty.net.

Coverage described anywhere on this site is a general summary, not a policy. Actual terms, limits, conditions and exclusions are set by the policy a carrier issues. Nothing here binds coverage.