What Does Commercial Property Insurance Do?
Commercial Property Owners Insurance provides cover for the risks associated with owning a premises used for business purposes. This could be a shop, salon, restaurant, factory or even a warehouse. Buildings used for Leisure, education or charity events may come under the umbrella of Commercial Property too. Those needing Commercial Buildings Insurance can usually be split into 2 groups.
Owners that have bought the property themselves from where they will run their own business.
If you own the premises from which your business is run then you may wish to take out Commercial Contents Insurance which will protect the contents in your building such as computers, desks or tools as opposed to the physical building itself. You may wish to take out a Commercial Combined Policy which can provide cover for stock, business fixtures and fittings, money kept on site, business interruption, goods in transit, liabilities and the building. This type of cover is often the most cost effective option rather than having a separate Commercial Buildings Insurance, Commercial Contents Insurance and a Liability Policy.
Landlords that own the buildings and let them to commercial tenants for rental income.
If you are the landlord of a commercial building you must make it clear who is responsible for insuring what as typically your tenants contents will not be covered under your policy. Some landlords arrange Commercial Premises Insurance for their building and charge the tenant the premium, however they will still be responsible for insuring their own contents and equipment
Cover can also be arranged to include:
Liability Insurance – This can include both Public Liability Insurance and Employers Liability Insurance which will protect you against a claim if a member of the public or an employee were to have an accident at your premises. EL Insurance is a requirement by UK law if you have any employees working for you, even if they are part time volunteers. Liability claims can be costly as well as time consuming with a lot of legal protocol to follow. If an employee were to have an accident as a direct result of working for you, you could have to pay legal fees and compensation as well as maybe having to take time off work to attend court dates or get legal advice. Many SME’s struggle to reopen after an incident like this if they don’t have adequate insurance. This can be due to the financial losses incurred or even the damage done to your businesses reputation.
Unoccupied Property Insurance – if your Commercial Property is left empty for more than 30 days at a time, your standard policy may not be enough and you may require a specialist policy. Unoccupied Property Insurance often provides the most basic of cover against perils such as flooding, fire lightning, earthquake and explosion. Therefore you may need additional security around your building and make it clear that it is not to be entered.