Is it better to insure Nursery Buildings separately?
If you are looking for Nursery Insurance to cover the nursery building itself, you should make sure you are covered for the following first:
- Property Owners Liability
- Loss of Rental Income
- Standard perils such as Fire, Lightning, Earthquake, Aircraft, storm theft etc
A standard buildings policy should cover all of the above. You will even have the option to include or add some extra coverage to the buildings. This may include the likes of Legal Expenses up to £100,000 per claim or extended Full Accidental Damage to the buildings. Some policies will include these ‘extras’ as standard, so it is important to check with your broker when taking out a policy.
The question as to whether or not it is better to separate the business from the building, may in fact be out of your hands if they are both legally under different names – it is in fact essential. Many Nursery Owners will indeed insure the building separately from the actual business. This can be due to one or two reasons. Possibly, sometimes it can be actually more cost effective to do the buildings and business on a different policy. The other reason being, that the buildings is owned by a different entity that the business. The building owner may ‘lease’ the building to the nursery business and the business may have a different name (possibly a Limited company) to the building owner. For example, the buildings owner may be called Mr Smith and the business owner may owned Mrs Smith Nursery (UK) Ltd – Mr Smith of course will be a director of the business and in reality it is the same people involved, but legally a different entity.
Top Tip – It is important that the correct entities are used when applying for an insurance policy – use the wrong entity, such as in the case of the above, you may find the insurer tries to argue there is no insurance contract in place with the legal owner. Make sure the nursery insurance for the building is in the correct name and the name which is on the property deeds. Many property owners have fallen foul of this in the past, and had a battle to get their claims paid on time or at all.
If you would like to chat with one of our advisors, please call us today on 0800 085 3761 to see how we can help. Our Commercial Property Owners Insurance policies will be able to provide adequate levels of cover for your nursery buildings, and also give you the option to increase liability cover or add legal expenses cover.