Tenants Improvements and Betterments: Is Your Clinic Properly Insured?

By Laura Weber, Senior Large Account Director

You’ve invested time and money in making your medical office the perfect space for your practice, but who is responsible for insuring those upgrades? If you lease your office, clinic, or storage space, it’s important to understand per the lease terms who has responsibility for covering any permanent installations and upgrades you make to the property. These are referred to as Tenant Improvements and Betterments (TIB) and can be insured under your Business Owners policy.  

What’s included in the definition of TIBs?

TIBs are upgrades you’ve made to your leased space that can’t be taken with you when you leave. From the Hartford Business Owners policy, TIBs include fixtures, alterations, installations, or additions made part of the building or structure that you occupy but do not own and cannot legally remove.

You’ll want to consider:

• New flooring, lighting, and built-in fixtures
• Walls, cabinetry, and structural additions
• Any other permanent modifications that enhance your space

Often, these improvements won’t be covered by the building owner’s insurance. Most lease agreements make the tenant responsible for insuring the upgrades they install. 

How to make sure you’re covered:

TIBs are added to your Business Owners Policy (BOP) as part of your Business Personal Property coverage. This means your property limit should include the replacement cost of:

• All office equipment—computers, medical devices, and furniture
• Any tenant improvements and betterments you’ve installed
• Leased equipment and property under your care

Even if you haven’t moved into the space yet, your property limit should include the replacement cost of any improvements or betterments you’ve made in getting it ready for occupancy.

Contact the WisMed Assure Service Team at insurance@wismedassure.org, or call 608.442.3810 for a policy review. We’ll help you assess your business property needs and secure the right protection.