Assets on leased land are still your assets — and still need insurance
Many land tenants think “the land isn’t mine, so insurance isn’t my worry.” Wrong: the workshop you built, the machinery you installed, the goods in the warehouse — all your property, and every fire, storm or flood hits your pocket, not the landowner’s.
The 2022 Insurance Business Law (08/2022/QH15, effective 1/1/2023) governs property insurance lines. The insured object is the asset — independent of whether you hold the land use right. You needn’t own land to insure your workshop; you need only demonstrate an insurable interest — that you suffer financially if the asset is lost.
Policy types to carry
1. Compulsory fire and explosion insurance: workshops and warehouses in listed categories must carry it under fire prevention law. A legal duty, not an option — non-purchase can be penalized.
2. All-risk property insurance: extending to storms, floods, earthquakes, theft, burst pipes… Especially vital for coastal or low-lying parks.
3. Machinery insurance: machinery breakdown cover for production lines — repairing/replacing imported equipment is extremely costly.
4. Goods insurance: stock in warehouses; where goods are bank collateral, banks typically require you to insure.
5. Business interruption insurance: compensating lost profit during recovery — the line many companies skip, yet hugely valuable when disaster strikes.
Caveats specific to leased land
1. Beneficiary: where assets are mortgaged, the bank becomes co-beneficiary — check the credit contract’s beneficiary clause. 2. Insured value: declare true asset value (rebuild/replacement cost less depreciation); under-declaring to save premium means proportionally reduced payouts. 3. Change notices: policies attach to locations — notify and adjust on lease expiry/relocation. 4. Coordinate with the landowner: if the landowner insures the whole park, check whether your assets are covered — usually not; don’t assume.
Frequently asked questions
Can a tenant insure a self-built workshop?
Yes — you hold an insurable interest in your owned assets. Provide the insurer: asset ownership papers and the land lease contract (proving site use rights).
Which workshops need compulsory fire insurance?
Facilities with fire/explosion hazards per fire prevention law — most park workshops and warehouses qualify. Minimum premiums and terms are legally set.
Can I insure clients’ goods stored in my warehouse?
You can insure only assets you have an interest in (yours, or in your custody by contract). Clients’ goods — require them to insure or allocate responsibility clearly in the custody contract.
What is the claims procedure after a loss?
Notify the insurer at once (within the contractual window, usually 24–48h); preserve the scene; record minutes; submit loss documentation. The insurer surveys before paying — don’t clear or repair before the survey.
Should I buy through an insurance broker?
Advisable for complex programs (multiple lines, large values) — brokers compare wordings, negotiate premiums and assist claims. For simple compulsory fire cover, direct purchase works too.
This article has been quality-reviewed by the FLAW AI Legal Council