Off-premise Clause

What Does Off-premise Clause Mean?

An off-premise clause is a provision in an insurance contract that ensures coverage for property stored at a location other than the primary insured property. This clause is commonly included in property insurance policies for policyholders who need to store items in separate locations due to space limitations. It’s a standard feature to look at when comparing commercial property insurance options, since coverage limits and qualifying off-site locations vary between insurers.

Insuranceopedia Explains Off-premise Clause

Off-premise clauses can be particularly beneficial in specific scenarios. For instance, a restaurant owner seeking to insure all the property in their restaurant could use a standard property insurance policy. However, if some valuable equipment is stored in a separate location, an off-premise clause would provide coverage for those items as well. Without this clause, a standard property insurance policy would typically cover only the property located at the restaurant itself. For restaurant owners in particular, this is one of the reasons to look beyond basic coverage when choosing a restaurant insurance policy, since walk-in freezers, catering equipment, and backup inventory are often kept off-site.