Office Space
When office space decreases, should property insurance premimum decrease?
I own businesses. One of my businesses downsized its office space. We didn’t move. We just reduced the space we occupy within the same building.
When my company’s office space decreases its square footage from 5,000 to 1,000 within the same space (same building/floor), shouldn’t my property insurance premimum also decrease? Why?
I doubt that your liability decreases because you have a smaller space. Liability is the major thing that could cost an insurance carrier large sums of money. The only difference I can see is that you might have less personal property and business fixtures in a smaller space. That might lower your premium um a few dollars a year.
As a business owner you should keep your insurance company honest at least every other year by getting quotes form a different broker and different companies. A few years ago I had my insurance carrier increase my premium about 15% in one year and I had not had any claims within that time. I did a little shopping around and got better coverage for less money than before.
Office Space – Official Trailer
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