Even if you are leasing a practice, when it comes to getting your Business Owner’s Policy, the insurance companies will always ask questions about the building you are going to be in. That includes information like:

Now you may ask yourself, “if I am not owning the building, why would I have to know that?”. When it comes to insurance companies and so called “rating information” those are the most important questions they ask, as it helps build your risk profile for how much the insurance company is going to charge for the policy. For example, a building with a wooden frame is going to be much more susceptible to fire damage than a building built out of concrete and metal, and therefore all the office equipment and belongings have a higher risk of getting destroyed in the event of an incident. This also means that without a lot of that information, you may not be able to receive a quote from any insurance company and therefore won’t be able to send your bank or landlord the required documents to close on your loan. 

Although, the most important reason to not wait until the last minute when looking for your practice insurance is to make sure you are able to easily get the insurance in the first place. Many do not know that in reality, in many areas in the United States nowadays it is getting very difficult to purchase a building as well as business personal property insurance because of events such as hurricanes, tornados, hail, flooding, and even wildfire. States such as Florida, Louisiana, Texas, and even California are getting more and more difficult, and therefore more expensive, for insurance companies to operate and provide good policies that will cover what you want them to cover. And to make sure your, in some cases, multi-million-dollar investment is safe if a big storm or other event comes their way. 

With that, if you are in a state that gets a lot of bad weather or has wildfires, it will take time for insurance companies to underwrite your project or practice and send out a quote. Even then it may take longer to provide a quote to you, as many insurance companies are now providing policies but without coverage for wind or wildfire. So, it may take some back and forth or even searching longer to find an insurance company that is willing to provide you with a good policy at a decent price that you’ll be happy to take, instead of just taking it because it is your only option. 

At the end of the day, it is always best to know as much about the space you will be practicing in and to always get a jump on your business insurances, as their job is to protect you on your worst day as a business owner. That way if that day comes, you know what you have and know that you are well protected to face it. This ensures that your business can get back on its feet as quickly as possible and you can continue to take care of your patients with whatever they may need. 

Written By: TJ Stanton