Signing a lease for your storefront is a big step, but if you're not careful, it could come with costly insurance obligations you didn't expect. Many restaurants and retail business owners sign commercial leases without fully understanding the insurance requirements buried in the fine print.

That mistake can lead to expensive gaps in coverage, or worse, liability for things you thought your landlord was responsible for. In today's Aegis blog post, learn some of the things you need to know before signing a lease contract, and why Aegis Insurance & Financial Services is the right insurance partner for any small business in need of leased commercial space.

Who's Responsible for What?

Commercial leases often push more risk onto tenants than most business owners realize. In many cases, you're responsible for:

• General Liability Insurance for your customers and employees
• Damage to the leased space (even if you didn't cause it)
• Insuring your fixtures, business signs, and improvements
• Covering the landlord in your policy (called "Additional Insured")

If your lease requires these things and your existing Commercial Insurance policies don't cover them, you could be on the hook for thousands of dollars, or be forced to buy extra coverage last-minute to meet lease terms.

Hidden Insurance Requirements

Here are a few common lease terms that often catch small business owners off guard:

• Minimum Liability Limits: Many leases require $1 million or more in General Liability coverage. If your policy falls short, you'll need to increase it quickly.
• Waiver of Subrogation: This clause prevents your insurance company from going after the landlord if they're partially at fault. You need to know if your lease includes this cause before signing the lease contract.
• Tenant Improvement Coverage: If you renovate your space, some landlords require you to cover those improvements under your policy, even if you paid for them yourself.

By understanding the hidden requirements that might be lurking in the fine print of your lease contract, you can be better prepared before signing, and have the coverage your business needs to stay protected if disaster strikes.

What Happens If There's a Loss?

Let's say there's a fire in your store or restaurant space. Your inventory is destroyed, and the building is damaged.

If your lease puts repair responsibilities or liability for damages on you and you don't have the right insurance in place, you could face:

• Out-of-pocket repairs to the landlord's space
• Lost inventory with no coverage
• Fines or lease violations for not meeting insurance terms
• Lawsuits if a neighboring business is affected

A loss can happen at any time, and in any location, so you owe it to your business to make sure your Commercial Insurance will be able to help if you're facing a major covered event like a fire or theft.

Always Review Your Lease with an Insurance Professional

Before you sign, share the lease with your insurance agent. A good Commercial Insurance agent can:

• Identify what coverage the lease requires
• Spot risks or red flags
• Recommend policy changes or endorsements to keep you compliant and protected

This simple step can save you from expensive surprises later.

Protect Your Business Before You Sign the Lease

Your lease shouldn't be a liability. A quick review by a knowledgeable insurance agent can help you understand your responsibilities and close the gaps before they become problems.

Call Aegis Insurance & Financial Services today at 713-850-7622 to speak with a Commercial Agent or schedule a consultation. We'll review your lease and help you build the right coverage so you can open your doors with confidence.