The real estate rental and leasing industry is comprised of businesses that focus on the renting, leasing or other permissioned use of assets. These assets can range from tangible property such as apartments, cars and tuxedos, to intangible assets such as trademark or brand name licensing. For those who own businesses within this industry, the risks are high, but the rewards are often lucrative. You can mitigate many of your industry’s risks by investing in a comprehensive business insurance policy that is designed specifically for businesses in the real estate rental and leasing industry sector.
Businesses Categorized Within the NAICS’s Real Estate Rental and Leasing Sector
The National American Industry Classification System has been tasked with categorizing businesses into sectors and subsectors according their specialty. This enables economists to collect, analyze and report on financial data for different industries. There are currently 807,164 U.S. business establishments classified as falling into the NAICS’s real estate rental and leasing sector. These include the following business types:
- Property Lessors, including
- Lessors of residential buildings and dwellings
- Lessors of non-residential buildings
- Lessors of mini-warehouses and self-storage units
- Lessors of other real estate property
- Property Managers, including
- Residential property managers
- Non-residential property managers
- Offices of real estate appraisers
- Passenger Car Rental and Leasing
- Truck, Utility Trailer and RV Rental and Leasing
- Commercial, Air, Rail and Water Transportation Equipment Rental and Leasing
- Construction, Mining and Forestry Machinery and Equipment Rental and Leasing
- Office Machinery and Equipment Rental and Leasing
- Rental Businesses, including
- Consumer electronics and appliances rental
- Formal wear and costume rental
- Video tape and disc rental
- Home health equipment rental
- Recreational goods rental
- General rental centers
- Lessors of Non-financial Intangible Assets
Proper Insurance for the Real Estate Rental and Leasing Industry is Essential
Whenever you lease or rent property to others, you run the risk of damage, loss, theft or other problems with that property. You also open the door to liability lawsuits if the property or product in question causes injury, illness or third-party property damage. It is therefore imperative that you protect the investment you have made in your business with a business insurance policy that is specifically designed for real estate rental and leasing industry businesses.
Some types of coverage you may find particularly beneficial to your business include the following:
- Property (contents) insurance: This is designed to cover both the property owned and used by your business, such as office furnishings and computers, and the property you are renting out to others. You will likely need to purchase endorsements for each type of product you rent to others in order to obtain full coverage.
- Product liability insurance: You are legally responsible if and when products, properties or dwellings that your rent to others create an unsafe environment or situation wherein third-party injuries, illnesses or property damage occurs. This coverage is designed to cover your legal defense fees as well as financial judgments that may be brought against your company.
- Commercial vehicle insurance: If you own a rental car business or if your business has a fleet of delivery cars or trucks or any other company-owned vehicles, you will be required by law to purchase commercial vehicle liability coverage. You may also want to strongly consider including collision, comprehensive and personal injury protection coverage in order to fully protect your business from potential financial losses.
There are a number of additional coverage choices available. The options that are right for your real estate or leasing company are dependent on its size, scope and specific inherent risks. An insurance professional can provide you with guidance and advice while shopping for a policy.
Independent Agents Can Help You Find the Right Business Insurance Policy
Your industry is real estate rental and leasing, not insurance. You should therefore not have to struggle with learning about the many different insurance options offered by business insurance plans on your own. Independent insurance agents in the Trusted Choice® network are available to help you every step of the way.
These agents can answer your insurance-related questions, help you assess your coverage needs, and work with a number of different insurance companies to build a policy that is well-suited to your specific company. They can also advocate for you if you ever need to file a claim. Contact a Trusted Choice network agent near you to learn more about insurance for the real estate rental and leasing industry.