✔️ One short form to complete
✔️ Guaranteed better prices
✔️ Any property value or tenant
✔️ All the best insurers are here
✔️ One short form to complete
✔️ Guaranteed better prices
✔️ Any property value or tenant
✔️ All the best insurers are here
FREE & no obligation quotes from these companies...
If you’ve answered yes to both these questions, do you fully understand what a policy does?
This guide is going to provide you with all the information you need.
Commercial property insurance protects your commercial property and physical assets from various types of peril.
These perils can include fire, theft, and natural disasters. A range of different businesses carry property insurance, from manufacturers and retailers to non-for-profit organisations and landlords. Commercial property insurance for landlords and other types of business can be costly.
It is, however, possible to deduct the cost of your commercial property owner insurance premiums as expenses.
Several different factors are taken into consideration when you request a commercial property insurance quote. These factors include the location of the property, type of construction, type of occupants, and whether any fire and theft protection measures have been taken.
As well as the building itself, this type of insurance also covers specific physical property. These items of property can include inventory, manufacturing and processing equipment, accounting records, relevant company documents, office equipment, signs, and satellite dishes.
A commercial building is exposed to a wide variety of risks.
These commercial property insurance risks include:
And other things you may want to know?
The price of your commercial property insurance depends on several different things.
The best way to find out is by asking a property insurance expert, here.
There are two types of commercial property cover:
Commercial Buildings Insurance – this type of insurance covers the costs if you need to repair or rebuild your commercial property, should it be damaged or destroyed. When comparing different insurance company policies, you must look at the cover provided. It should cover the total cost of rebuilding the property, rather than its market value or sales price.
Commercial Contents Insurance – this type of insurance covers the cost of replacing equipment and stock, should it be stolen or damaged. Insurance cover for your contents should relate to the cost price, rather than the sales price of the items.
There are two types of business contents insurance: replacement as new, and indemnity policies.
A 'replacement as new' policy allows you to replace an item with a new one, should it be stolen or damaged beyond repair. An indemnity policy, on the other hand, takes wear and tear into account, replacing items at their current value, rather than the original amount.
Coverage includes buildings, contents, and the property of others in your care.
Imagine you have to borrow a photocopying machine from a neighbouring business and your business premises burn down. The copy machine is covered, together with any other equipment you’ve borrowed or hired.
Basic commercial property insurance coverage can be purchased to cover named or open perils.
If you choose named perils, it means property cover only includes specifically named perils in the insurance contract.
An open perils policy, on the other hand, covers all risks except those expressly excluded.
The premium for an open perils policy is higher than a named perils policy. The reason for this is that the policy is more comprehensive.
Named perils include:
• Fire or lightning
• Theft or vandalism
• Explosion
• Water damage, sprinkler leakage, burst pipes
• Damage from vehicles or airplanes
• Smoke from accidental fire
• Windstorm or hail
• Riots or civil commotion
• Building or sinkhole collapse
There are several additional perils excluded from an open policy.
For example:
• Fungus and mould
• Animal or insect infestations
• Corrosion or rust
• Mechanical breakdowns
• Sewer backups
Making sure you get what we're talking about.
Yes, a good policy can.
Commercial contents insurance covers your property should your business becomes a victim of theft.
Yes.
Damage cause by fire is included in this type of insurance, under commercial buildings insurance.
It’s not a legal requirement that you have insurance for a commercial property.
The level of coverage needed depends on several factors.
If you’re insuring your business buildings, you have to consider the cost of rebuilding the building from scratch. For buildings contents, the level of cover is based on the cost of replacing the items.
You have two options.
Across the UK, there are several insurance providers that offer insurance for commercial property owners.
Which one you choose depends on the level of customer service and brand trust.
Here are a few examples of
the kind of company you need to look for.
Aviva
– provides commercial property insurance for landlords and business.
Insurance solutions can be tailored to meet your needs. Aviva uses a
network of insurance brokers to find a policy that suits you. Up to 20
commercial properties can be included in one policy.
AIG
– provides property insurance designed with the commercial owner in
mind. AIG can provide specialist cover for niche premises, together with
a range of other business insurance products.
RSA
– RSA sells its insurance products through insurance brokers.
Comprehensive buildings cover is available. RSA has a preference for
business with large portfolios of mixed commercial property, office and
retail, and out of town complexes for entertainment.
AXA
– AXA provides commercial insurance suitable for surgeries, offices,
shops and other types of premises. Policies can be tailored to suit
specific needs. They also provide business cover for people who work
from home.
Direct Line for Business – policies from this provider are designed to meet the needs of the small business owner. Cover can be tailored to suit individual business needs.
Before you purchase your insurance it’s always best to ask for a commercial property insurance quote.
In order to do that, you’ll have to assess your insurance needs.
If you need an insurance quote there are several avenues to explore.
Link (New window) - Commercial property buying guide.
Link (New window) - More on commercial property insurance from Investopedia.