How to Protect Your Business While You Renovate?

Posted: March 2nd, 2026

Written By: Mark Siemer

Renovating a business property can be a smart investment. But it comes with disruptions and risks. Just like homeowners face risks when you hire a contractor to renovate their home, a business faces risks when it hires a contractor to renovate its facilities. A business renovation faces the same complications a home renovation faces, but with added layers of complexity created by the for profit nature of the property. Prior planning can avoid some hazards and mitigate others. 

What Happens if Someone Is Injured On My Property?

The chance that someone is injured on your property goes up when there is construction. Construction sites come with safety concerns like tripping, debris, or power tools, exposed nails and fasteners. Sometimes it is possible to isolate the area that is being renovated but usually it is not. Customers get confused and walk into the wrong room, the parking lot gets full so they come in from behind the building where the work is being staged, employees need to get that one item they only use every couple of months that is stored in the construction zone and kids get curious and my try to explore the site.

So what happens if someone gets injured on your property because of the construction efforts? Well, it depends. Is the injured person an employee, a subcontractor on the construction project, a third-party business partner or a client? Do you have general liability insurance and if so, what exclusions? Do you have any property insurance? Are you a named insured on the contractor’s insurance? How well was the secured? Were their warning signs? Each of these questions shapes what happens if someone is injured on your property during construction. The number one way to protect yourself is to prevent the injury from occurring by keeping the work area clean, secured and have clear warnings posted. But, nothing is perfect and then best precaution you can take is to make sure that you are adequately insured.  

How Can I Make Sure I am Insured?

One of the most important (but often overlooked) steps before starting any renovation is collecting certificates of insurance (COIs) from every contractor and subcontractor working on-site. A certificate of insurance is a document from the insurance company giving a short and concise declaration of the person’s insurance. This will tell you if they carry general liability insurance, umbrella insurance, professional liability insurance, builders risk insurance or worker’s compensation coverage. Without them, you have no way of know what coverage actually protects.

Always verify that the coverage limits meet your project’s size and risk level. Additionally, request to be listed as an “additional insured” on each contractor’s policy. This gives you direct protection under their insurance, closing gaps that might otherwise come back to your business.

How Can I Make Sure My Project Will Be Finished?

Every project is at risk of disruptions that stop work from at least to potential causes. First, a disruption in work by the contractor. Second, a disruption in the scope of work caused by unknown conditions. The first issue can occur when the contractor stops work for reasons unrelated to the project. They might run out of labor, they might run out of money, they might work on a more profitable project. This risk is extremely hard to plan for. Especially on small to medium size projects where the contractor is unlikely to  put up a bond. The best way to prepare for this possibility is to put some forethought into how you can continue operating your business when the project stalls and how you can get business disruption insurance to protect you from a potential breach of contract claim against you if the disruption prevents you from completing an order or servicing an existing contract.

Next, even the most carefully budgeted renovation will encounter surprises. Once the contractor peals back the drywall they could find termite damage, rotten wood or any number of issues that were not identifiable before the demolition began. Keeping some funds in reserve to address changes in circumstances is vital keeping your project going.  This can be addressed by careful contract drafting to address common unknown conditions. It can also be addressed by spending additional money up front to conduct a more complete investigation into the condition of the property. Finally, and most commonly, you can keep money in reserve. Experts recommend setting aside 10–20% of your total renovation budget as a contingency or emergency reserve.

Having this cushion prevents a cash flow crisis when unplanned expenses arise. It also keeps your project moving forward without relying on high-interest short-term loans or compromising on essential repairs and finishes.

How Can I Keep Operating While I Am Renovating?

A renovation often disrupts day-to-day business operations, so having a continuity plan is essential. If a key area of your building will be inaccessible, determine how you will continue serving customers and maintaining employee productivity.

Some strategies include:

• Temporarily relocating operations to another location or remote model.
• Scheduling renovation work during off-peak hours or in you low season.
• Communicating early with customers about changes in access or service availability.

Planning for disrupted business operations reduces stress and keeps customers happy. It is an added expense to the project. But, planning for it in advance allows you to incorporate those costs into the project budget so you can make sure that once you start on your project you are able to finish it.

Final Thoughts

Renovating your business property will at some point be an essential part of any business plan and it will pose uncertain risks that can be mitigated by prior planning, proper budgeting and careful contracting. Meeting with you attorney at the beginning of the project to review the bids you receive can help you manage those risks by addressing them in advance.

Mark Siemer, is a Construction Attorney with Volk Law Offices, P.A., has 8 years’ experience and can be reached at help@volklawoffices.com or by visiting VolkLaw online at VolkLawOffices.com. Read more about Attorney Mark Siemer. Call for a consultation: (321) 726-8338.

The matters discussed here are general in nature and are not to be relied upon as legal advice. Every specific legal matter requires specific legal attention. 

The law is constantly changing and matters discussed today may not be the same tomorrow. Legal matters are also subject to different interpretations by attorneys, judges, jurors and scholars. No attorney-client relationship is intended or created as a result of matters discussed here. You should consult counsel of your choice if you have any dealings in these areas of the law. Volk Law Offices, P.A. and its attorneys make no representations or warranties with respect to the accuracy or completeness of the matters addressed.