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Business Sense

Who Insures Interior Improvements at Your Leased Building or Office?

If you lease a building or office for your business and make improvements to the space—such as remodeling the interior—it’s a good idea to review your business insurance coverage.

Generally, if you’ve made any after-the-fact alterations, it’s up to you, not the property owner or landlord, to insure them.

For example, let’s say you’ve leased space for your beauty salon, retail business or medical office and you install new sinks, counters and shelving. You would need to insure those items.

In the insurance industry, we call these changes improvements and betterments. Essentially, it means that you’re responsible in a leased space for insuring any alterations you have made, such as flooring, light fixtures, wall coverings, wiring, plumbing, cabinets, shelving or anything else that is attached to the ceiling, walls or floors.

Because these improvements might be essential to your business operations, it’s important to understand who is responsible for replacing them if they become damaged. If you do not update your business insurance to cover these improvements, you could be underinsured and without the means to fully repair or replace the improvements, if a covered loss occurs.

With an Erie Insurance policy, the improvements and betterments are part of business personal property coverage.

For more information, get in touch with your local ERIE agent. If you don’t have your own ERIE agent, you can find one close by. Our agents are knowledgeable professionals and local small business owners just like you who can make sure you have the right coverage in place.

If you lease a building or office for your business, it's a good idea to review your business insurance coverage. Generally, if you’ve made any after-the-fact alterations, it’s up to you, not the property owner or landlord, to insure them. /blog/business-betterment-general-business Erie Insurance https://www.erieinsurance.com/-/media/images/erieinsurance/erieinsurancelogo.png

ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York).  The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.


The insurance products and rates, if applicable, described in this blog are in effect as of June 2017 and may be changed at any time. 


Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions. 


The insurance products and services described in this blog are not offered in all states.  ERIE life insurance and annuity products are not available in New York.  ERIE Medicare supplement products are not available in the District of Columbia, New York and Wisconsin.  ERIE long term care products are not available in the District of Columbia and New York. 


Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.


Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.