New Look at an Old Lease
It’s clear that being aware of when your lease term ends can help you make financial plans for your business’s future, but there’s a less obvious reason why you may wish to find that dusty old document and have a look at it: insurance.
For example, what happens if your lease term is cut short because the owner decides not to rebuild after a fire, windstorm or other disaster? Do you know what another, alternative space will cost your business? Will it be more than what you’re paying now? Significantly more?
The truth is that many business owners—particularly those who have negotiated a favorable lease—are unprepared for the financial consequences that will result if the lease term is cut short. The good news is that it may be possible to insure the terms of your current lease with insurance (often called “Leasehold Interest”) that will offer significant financial support to your business if it must scramble to deal with finding and paying for alternative space.
Reprinted with permission, The Mines Press Inc.