Commercial Property Insurance
What is Commercial Property Insurance?
Commercial properties have slightly different risks to residential, so the policy is tailored to meet these specific risks. Whether your property is used for offices, retail, industrial, leisure, beauty, storage, unoccupied or mixed use, we can find the right cover to suit.
General cover can include damage to buildings, landlords contents, property owners liability, employers liability and business interruption cover.
What can commercial property insurance cover?
- Buildings: Cover for physical or accidental damage.
- Contents: If you have any contents within the property i.e. carpets, curtains, white goods.
- Loss of rent: If the tenants can’t stay in the property.
- Accidental Damage
- Malicious Damage: Including damage caused by tenants.
- Property owner’s liability: Cover if your tenants or visitors are injured because of your negligence.
- Employers Liability: If you employ a maintenance person to deal with your properties.
- Legal Expenses: If you have to defend yourself against a legal action.
- Insured perils can include escape of water, flood, fire, storm, subsidence, impact, lightning, explosion, or burst pipes.
- Inflation protection
- Trace and access of leaks: The cost incurred to find the leak and put right the damage. The replacement of the pipe is not usually covered as this is deemed wear and tear.
What else do I need?
- Rebuild Cost Assessment: A small one-off payment to obtain correct rebuild valuation to prevent under or over insurance
- Cyber Insurance: If you hold any tenant information or take any card payments
- Directors Insurance: If you run your property business as a limited company and want to protect your personal assets.
Why do I need Commercial Property Insurance?
Legally you don’t need it, but you should have it. If you’re fortunate enough to have surplus cash to cover a total loss and the time and expertise to sort a claim, then you probably don’t need this policy. But if like most people, you would prefer that a claim didn’t directly hit your bottom line and you could do without the stress or time commitment needed to sort a claim, then this policy is worth every penny.
Some mortgage lenders may stipulate that you must have this insurance. That aside, you have most likely invested a lot of money on your property and will naturally expect a return on your investment one day. Protect your assets and retirement fund with the right level of insurance cover.
Do I need commercial landlord property insurance?
It is not a legal requirement, but it is usually a requirement of the lease that your tenant has with you. As the owner and landlord you have an obligation to insure the property against specific risks (damage) detailed in the lease, and a breach of this could cost you a lot of money. You would be liable for any third-party compensation claims related to property damage or injury through your negligence.
If you have a mortgage on the property then your lender may stipulate that you have this insurance in place.
What happens if my tenant has to move out due to damage?
If you choose to include business interruption cover within your policy, you would be covered for loss of rent if your tenant has to move out as a result of an insured claim. For example, if you experience a large fire or flood and the premises were deemed not fit for occupation, (the bathroom or kitchen could not be used), your tenant would have to move. You could suffer a loss of rental income until the repairs to the property are complete. This could take months, possibly years depending on the damage and size of the property. The majority of leases state a minimum period of 36 months to cover loss of rent.
What happens if my property becomes vacant?
If your business premises become empty and remain empty for a period of 30 consecutive days it is deemed to be an unoccupied property. Note that different insurers have different definitions of unoccupancy and can vary from 30 to 90 consecutive days. You should contact us immediately so that we can inform the insurer. Quite often, the insurer will impose different terms and possibly restrict cover or even decide to no longer provide cover. There could be a change in the premium as the risk has now increased. If you do not inform us, or your insurer, then a claim could be rejected.
Types of businesses we can cover
- Retail shops (including mobile phone and vape shops)
- Storage units
- Restaurants, Takeaways, or Cafés
- Art Galleries
- Manufacturing premises
- Business parks
- Vacant properties
- Storage units
- Beauty salons
- Industrial units