Owning property comes with responsibility as you have a legal duty of care for any members of the public on your property and are required to have public liability cover.
You also need to protect your assets against risks and damage. You may also want to protect your income if you rent out the property. This is where commercial property insurance can help to protect you from damage, claims and compensation costs.
There are a variety of policies available for property owners which can offer different elements of property cover and comprehensive packages to meet all your needs. Below we have looked at what the market has to offer UK based commercial property owners.
The table below gives a quick comparison of the top UK providers for commercial property insurance.
| Company | Minimum Cover | Maximum Cover |
|---|---|---|
| Aviva | Not stated | £5 million |
| AIG | Not stated | £50 million |
| RSA | Not stated | Not stated |
| AXA | Not stated | Not stated |
| Direct Line for Business | Not stated | Not stated |
| Zurich | Not stated | Not stated |
| Allianz | Not stated | £10 million |
| Ageas | Not stated | Not stated |
| QBE | Not stated | Not stated |
| NFU Mutual | Not stated | £10 million |
| Lloyds Banking Group | Not stated | Not stated |
| Liberty Mutual | Not stated | Not stated |
| Chubb | Not stated | Not stated |
| Covéa | Not stated | £2 million |
| HDI | Not stated | EUR 250 million |
| Hiscox | Not stated | Not stated |
| AmTrust Europe | Not stated | Not stated |
| Berkshire Hathaway | Not stated | Not stated |
| Markel direct | Not stated | Not stated |
| Travelers | Not stated | Not stated |
| Tokio Marine | Not stated | Not stated |
| CNA Hardy | Not stated | Not stated |
| Sompo International | Not stated | $50 million |
| NIG | Not stated | £10 million |
| ARO Insurance | Not stated | £10 million |
| ARAG Insurance | Not stated | Not stated |
| Glemham Insurance | Not stated | £20 million |
* The facts and figures included here come from each company’s website and were accurate at the time of writing (February 2020) but may have since changed. Also, please keep in mind these may not be apples to apples comparisons as each provider offers different solutions. This guide should be used as a starting off point for more research on your part.
Below we profile each of the companies’ services and features in a bit more detail.
Note companies are ranked in no particular order and this no way indicates one solution is better than another. Moreover, SmallBusinessPrices.co.uk is not regulated by the FCA and so we can’t recommend any particular product/company as being better than any other.
Topics
1. Aviva
Some of the features and benefits of Aviva’s commercial property insurance.
- Commercial property owners’ package for businesses and landlords
- Tailored insurance solutions
- Offers a range of optional cover
- Public and products liability up to £5 million
- Damage to landscaped gardens
- Loss of metered utility supplies
- Trace and access
- Alternative accommodation
- Add legal expenses, terrorism and employer’s liability
- Can be purchased through a broker
Aviva offers a wide range of business insurance through a network of insurance brokers. They offer commercial property owners’ package that is designed to cater for businesses that own their property and landlords. It is a policy that can be tailored to meet your needs and can cover up to 20 commercial properties on one policy.
Aviva’s commercial property owners’ package includes public and products liability insurance up to £5 million as standard. It can also include damage to landscaped gardens up to £25,000, loss of metered supplies up to £10,000, trace and access up to £25,000 and alternative accommodation up to 20% of the building insurance sum.
2. AIG
Some of the features and benefits of AIG’s commercial property insurance.
- Property insurance designed for commercial premises
- Offers a range of specialist cover for niche premises
- Property damage all risks
- Business interruption
- Clean up costs
- Equipment breakdown
- Cyber cover
- Theft
- Reduced conditions and warranties
- Employer’s, public and product liability
AIG is an insurance provider that offers a wide range of business insurance products which includes property insurance. Their property insurance is designed for a wide variety of commercial premises that are often considered niche such as hotels, telecoms buildings, infrastructure buildings, manufacturers, real estate and hospitality buildings.
AIG’s property insurance offers property damage all risks which covers most eventualities and it includes clean up costs, equipment breakdown, cyber cover, theft, reduced conditions and warranties such as sprinklers and alarms. It can also be combined with other insurance cover such as material damage, business interruption, employer’s, public and product liability.
3. RSA
Some of the features and benefits of RSA’s commercial property insurance.
- Property owners’ insurance for commercial premises
- Comprehensive cover
- Buildings insurance
- Loss of rent insurance
- Terrorism insurance
- Property owners’ public liability insurance
- Employer’s liability insurance
- Preference for mixed commercial, office and retail properties
- Favour premises that have reduced risk
- Available through a broker
RSA is an insurance provider that offers a variety of business insurance products which includes property owner’s insurance which is designed for commercial properties. They sell their insurance products through insurance brokers to business with small to large portfolios of properties.
RSA’s property owner’s insurance offers comprehensive cover that includes buildings insurance, loss of rent cover, terrorism insurance, public liability insurance designed to cover property owners and employer’s liability insurance. RSA favours businesses that have large mixed commercial portfolios, office and retail portfolios, and out of town entertainment complexes but they will consider a variety of other properties but will prefer those that have reduced risk in their properties.
4. AXA
Some of the features and benefits of AXA’s commercial property insurance.
- Commercial property insurance
- Suitable for shops, offices, surgeries and other commercial properties
- Caters for home workers
- Flexible insurance that can be tailored to your needs
- Buildings, fixtures and fittings insurance
- Contents cover
- Stock and cash on premises
- Business interruptions
- Legal expenses
- For small to medium-sized businesses
AXA is an insurance provider offering a range of business insurance including commercial property insurance. They have designed their commercial property insurance to suit a wide variety of businesses including shops, offices, surgeries and hotels, and they also cover people who work from home.
AXA’s commercial property insurance is a flexible policy that allows you to select the cover that you require and combine different types of insurance to create one comprehensive policy. The policy can include buildings, fixtures and fittings, business interruption, stock and cash on premises, and legal expenses which gives you access to a 24-hour legal helpline. They also offer a range of other additional products.
5. Direct Line for Business
Some of the features and benefits of Direct Line for Business’ commercial property insurance.
- Buildings insurance for businesses that own their premises
- Suitable for renters who have made alterations to the premises for their business
- Tailored cover to meet your needs
- Can cover all risks
- Damage to property
- Fire, lightning, explosion and earthquake
- Riot or civil disturbance or malicious acts
- Storm, flood or escape of water
- Accident damage
- They claim to beat other quotes
Direct Line for Business is an insurance provider that offers a range of business insurance that is designed to meet the needs of smaller businesses. Their products include buildings insurance that is suitable for businesses that own their premises or those that have made significant alterations to the premises to suit their business.
Direct Line for Business’ building insurance can be tailored to meet your business needs with the cover that you require. You can choose to cover buildings all risks which can include damage to a property as a result of a wide variety of damage.
Direct Line for Business website
6. Zurich
Some of the features and benefits of Zurich’s commercial property insurance.
- Offers a range of property insurance products
- Property and business interruption
- Property owners’ insurance
- For commercial properties, offices, retailers and residential properties
- Public and products liability cover
- Optional extras
- Contents
- Employer’s liability
- Legal expenses
- Business interruption
Zurich is an insurance provider that offers a variety of business insurance which includes a wide range of property insurance products. Their range includes property and business interruption, property insurance and property owners’ insurance. They cater their products to a broad mix of businesses including commercial properties, offices, retailers and residential properties.
Zurich’s property cover can be tailored to meet your needs with a flexible cover that includes public and products liability as standard. You can choose from optional covers such as contents insurance which can be tailored for landlords, employer’s liability to cover staff working on the premises, legal expenses and business interruption.
7. Allianz
Some of the features and benefits of Allianz’s commercial property insurance.
- Complete Property Owner insurance
- Offers cover for up to 20 properties
- Covers both commercial and residential
- Property damage
- Property owners’ liability
- Commercial legal expenses
- Optional cover
- Loss of rent
- Employer’s liability
- Personal accident
Allianz is an insurance provider that offers a variety of business insurance through a network of brokers. They offer complete property owner insurance which provides cover that is designed to protect you against damage and legal action in a single policy.
Allianz’s complete property owner insurance offers cover that includes property damage and loss of buildings and contents, property owners’ liability up to £2 million which can be extended to £10 million, and commercial legal expenses up to £1 million. Their optional covers include loss of rent up to £750,000 per year, employer’s liability insurance up to £10 million, and personal accident up to £20,000.
8. Ageas
Some of the features and benefits of Ageas’s commercial property insurance.
- Property owners’ insurance
- Suitable for commercial and residential rental properties
- Flexible cover
- Can cover one or multiple properties
- Property damage
- Loss of rent
- Employer’s and public liability insurance
- Directors and officers’ liability
- Legal expenses
- Available through a broker
Ageas is an insurance provider that offers business insurance through a network of brokers who can help you build the best cover for you. They offer property owner insurance that is available to commercial properties, blocks of flats and residential rentals. They will insurance single properties or multiple properties in a portfolio.
Ageas’ property owners’ insurance is designed to be flexible so you can choose what you want to cover in your policy. You can include property damage, loss of rent, employer’s liability, public liability, directors and officers’ liability, legal expenses and landlord’s legal protection up to £50,000 on residential properties only.
9. QBE
Some of the features and benefits of QBE’s commercial property insurance.
- Property insurance
- Protect against the impact of unexpected damage and business interruption
- Comprehensive cover
- Flexible approach
- Will get to know your business to give you the best solution
- Single or multiple site businesses
- Available to small enterprises to large multi-nationals
- Offers risk management support
- Has a network of local underwriters
- Established international property insurance provider
QBE is an international insurance provider that is a well-established provider that has been offering property insurance for a very long time. They offer property insurance to small enterprises through to large multi-nationals for single properties and multiple site businesses.
QBE’s property insurance offers comprehensive cover that is a flexible product that allows them to tailor their product to meet your needs. They will get to know your business in order to assess your insurance needs and offer you the best cover possible. Their property insurance comes with the added benefit of including risk management support to reduce any possible risks.
10. NFU Mutual
Some of the features and benefits of NFU Mutual’s commercial property insurance.
- Property owner’s insurance
- A flexible product that can be tailored to meet your needs
- Offers basic cover with a range of optional extras
- Buildings insurance
- Business interruption
- Property owner’s and product liability
- Employer’s liability
- Commercial legal expenses
- Group personal accident
- Money and malicious attack
NFU Mutual is an insurance provider that is controlled by its members and offers a range of business insurance that is designed for small to medium-sized businesses. They offer property owner’s insurance that can be tailored to meet your business and industry sector’s needs as their policy offers a basic cover with a range of optional extras.
NFU Mutual’s property owners offer buildings insurance, business interruption, property owners and product liability as standard. Optional cover includes employer’s liability, landlord’s contents, commercial legal expenses, group personal accident, money and malicious attack, goods in transit, terrorism, business travel, engineering insurance and inspections.
11. Lloyds Bank
Some of the features and benefits of Lloyds Bank’s commercial property insurance.
- Property owner’s insurance
- Suitable for commercial and residential property
- Protection for buildings inside and out
- Comprehensive property insurance
- Easy to buy and immediate cover is available
- Building insurance
- Property owner’s liability
- Rent cover for residential properties
- Compare quotes from their panel of insurers
- Provided in partnership with Arthur J. Gallagher
Lloyds Bank is a financial services provider that offers business insurance in partnership with Arthur J. Gallagher who is a large UK insurance provider who can compare quotes from their panel of insurers. Their property owner’s insurance is available for both commercial and residential properties.
Lloyds Bank’s property owner’s insurance provides comprehensive cover that protects your property inside and out. It offers cover for buildings against damage including flooding, subsidence and accidental damage. It can also cover property owner’s liability in case of injury to the public and rent cover for residential properties when there are temporary gaps in rental income.
12. Liberty Mutual
Some of the features and benefits of Liberty Mutual’s commercial property insurance.
- Business owner’s policy
- Protection for your premises and its contents
- Tailored cover
- Package offerings
- Key property and general liability
- Optional extras
- Loss of income and additional expenses
- Equipment breakdown
- In-house property risk expertise
- Available through independent agents and brokers
Liberty Mutual is an insurance provider that provides a range of business insurance products and risk management support. They offer a range of commercial property insurance that is tailored insurance packages that can cater for a wide range of needs and is suited to small to medium-sized businesses.
Liberty Mutual’s property owner’s insurance brings together key building insurance with general liability cover to protect the interest of the property owner. This insurance package allows you to include the cover that you need as you can add extra cover such as loss of income, additional expenses whilst the business is closed and equipment breakdown.
13. Chubb
Some of the features and benefits of Chubb’s commercial property insurance.
- Property insurance for UK and Ireland businesses
- Bespoke packages
- Property damage
- Business interruption
- Option to add a variety of other cover
- Goods in transit
- Accident damage
- Machinery and computer breakdown
- Cater for speciality industries
- Suited to medium to large businesses
Chubb is an insurance provider that offers a range of specialist insurance products to businesses in the UK and Ireland. They offer property insurance designed to be tailored to meet your business’ needs with the option to add further cover.
Chubb’s property insurance protects commercial properties with a package of cover to choose from. The cover options include property damage, business interruption, accidental damage, money, goods in transit, machinery and computer breakdown, and terrorism. You can also add other bespoke covers to enhance your package. Their insurance is tailored to meet the needs of medium to large businesses in professions such as finance, healthcare, manufacturing, and professional services.
14. Covea
Some of the features and benefits of Covea’s commercial property insurance.
- Commercial property owner’s insurance
- Suitable for commercial properties and blocks of flats
- Buildings insurance all risks
- Property owner’s liability
- Accidental damage
- Optional extra cover
- Contents insurance
- Loss of rent
- Employer’s liability
- Engineering inspection and insurance
Covea is an insurance provider that offers a range of packaged insurance policies for businesses through a network of brokers. They offer commercial property owner’s insurance that is designed as a tailorable package suitable for commercial properties and blocks of flats with a range of optional extras.
Covea’s commercial property insurance combines building all risks insurance with property owner’s liability, accidental damage and glass cover as standard. They also offer a range of optional covers such as loss of rent, employer’s liability, engineering inspection and insurance. You can cover single or multiple properties on one policy.
15. HDI
Some of the features and benefits of HDI’s commercial property insurance.
- Property and business interruption insurance
- Policies that can be tailored to your needs
- Can adopt your current policy wording
- Caters for industrial and commercial businesses
- Flexible policies
- Can provide high levels of cover up to €250 million
- Cater for a broad range of industries
- Prefer clients that are risk-aware and take active steps to reduce risks
- Offers risk control support
- International provider of insurance products
HDI is an international insurance provider that offers specialist and bespoke insurance products to businesses. They offer a variety of insurance solutions which include property insurance that is a flexible product that can create bespoke policy wording to meet the business’ needs or can take your current policy wording to create a policy to match.
HDI’s property insurance can be used to insure single or multiple properties that can be up to a maximum policy amount of €250 million. They target their products towards medium to large businesses including multi-nationals that are risk-aware and have taken preventative steps to reduce their risks.
16. Hiscox
Some of the features and benefits of Hiscox’s commercial property insurance.
- Office buildings insurance
- Protection against damage
- Cover for damage such as flood or fire
- Accidental damage
- Rebuilding costs
- Trace and access
- Loss prevention costs
- Optional extras
- Business interruption
- Equipment breakdown and portable equipment
Hiscox is an insurance provider that specialises in business insurance that can be purchased as a standalone cover or be bundled up by selecting their products to create your own tailored combined package to meet all your business needs.
Hiscox’s office insurance includes protection against damage to your property such as flood or fire, accidental damage, rebuilding costs, loss prevention costs, trace and access which covers the cost of locating damaged cables, pipes and drains. It does not cover contents, but they can provide that too as a combined policy as well as other optional extras including business interruption, equipment breakdown and portable equipment insurance.
17. AmTrust Europe
Some of the features and benefits of AmTrust Europe’s commercial property insurance.
- Commercial property owners
- Suited to commercial landlords
- Tailored product to protect property and contents
- Loss of rent
- Legal and property owner’s liability
- Legal protection
- Accidental damage
- Employer’s liability
- Terrorism
- Can replicate established speciality insurance or create a bespoke product
AmTrust Europe is an international insurance provider that offers a range of tailored business insurance. Their property insurance caters for landlords with both residential and commercial properties, holiday properties and other commercial properties. They offer bespoke policies or will replicate an established speciality insurance product to meet your needs.
AmTrust Europe’s commercial property owner’s insurance is a tailored policy that will protect both property and contents. It also covers loss of rent, legal and property owner’s liability, legal protection, accidental damage, employer’s liability and terrorism. They also offer a commercial combined product which includes liability and business interruption insurance.
18. Berkshire Hathaway
Some of the features and benefits of Berkshire Hathaway’s commercial property insurance.
- Property all risks insurance
- Speciality insurance products
- Offers package products
- Global corporate offering
- Mid-market level
- Can offer excess layers
- Available to Private Financing Initiative
- Will cover construction projects
- Provides insurance to a variety of industries and sectors
- International provider
Berkshire Hathaway is an international insurance provider that offers a range of speciality insurance products that are created to meet the needs of specific industries and niches. They offer tailored insurance products which include property insurance.
Berkshire Hathaway’s property insurance is a flexible policy that offers a broad range of cover for a variety of circumstances. They offer property insurance that can cover all risks, excess layers and packages. They provide cover to global corporates, mid-market businesses, Private Financing Initiatives and construction projects. They specialise in products to real estate businesses, financial institutions, healthcare, manufacturing, industrial risks, leisure, retailers and technology businesses.
19. Markel Direct
Some of the features and benefits of Markel direct’s commercial property insurance.
- Office insurance
- Tailored insurance
- Specialist office and business equipment insurance
- Buildings and contents insurance
- Accidental damage
- Business interruption
- Loss of income
- Cover from as little as £6 per month
- Fast and simple online quotes
- No hidden fees and interest-free direct debits
Markel direct is an insurance provider that offers a variety of business insurance cover that is designed to meet the needs of small to medium-sized businesses. They offer specialist office insurance that can be tailored to your needs. They have no hidden fees and cancellation charges and don’t charge interest on their monthly direct debits.
Markel direct’s office insurance can cover building and contents as well as the option to include accidental damage, business interruption, business equipment against loss, theft and damage, and loss of income. Cover can start from as little as £6 per month and you can get a fast and simple quote online.
20. Travelers
Some of the features and benefits of Travelers’ commercial property insurance.
- Bespoke property insurance
- Protection from damage
- Cover includes fire, theft, storms and floods
- Buildings cover
- Contents insurance
- Business interruption
- Loss of rent
- Public liability
- Employer’s liability
- Available only through independent brokers
Travelers is an insurance provider that offers a variety of business insurance through a network of independent brokers to business in the UK. They offer insurance that can be tailored to the needs of businesses in specific sectors with standalone or combined insurance products.
Traveler’s property insurance gives business protection from damage which includes fire, theft, storms and floods. Their insurance can be tailored to your needs and you can select the cover you want. They offer buildings insurance, property and business interruption insurance, property contents insurance, and terrorism. You can add extra cover such as loss of rent, public liability and employer’s liability.
21. Tokio Marine
Some of the features and benefits of Tokio Marine’s commercial property insurance.
- Offers an extensive variety of commercial property insurance
- Covers all risks
- Property damage
- Business interruption
- Catastrophe perils
- Can cover earthquake or flood only
- Tailored cover
- Provides cover to a broad range of businesses
- Suitable for small to large businesses
- International insurance provider
Tokio Marine is an international insurance provider that offers a variety of business insurance products in the UK and abroad. As part of their business insurance portfolio, they offer an extensive variety of commercial property insurance.
Tokio Marine’s commercial property insurance can cover all risks, earthquake only and flood only. Their commercial property insurance covers all risk coverage for property damage, business interruption and catastrophe perils. They provide commercial property insurance to businesses of all sizes from small to large multi-nationals whose business is in manufacturing, hospitality, retail and real estate.
22. CNA Hardy
Some of the features and benefits of CNA Hardy’s commercial property insurance.
- Comprehensive commercial property owner’s insurance
- Covers a variety of buildings
- All risks
- Wind only
- Earthquake only
- Package policy
- Tailored cover
- Third party liability
- Available through brokers and agents
- An international insurance provider with a strong local presence
CNA Hardy is an international insurance provider that has a strong presence in Europe and has offices in London. They offer a variety of speciality business insurance products to help protect them from damage and liability, which includes property insurance.
CNA Hardy’s property insurance is designed for businesses that have a single property to larger portfolios which can include office buildings and hospitals through to heavy industrial sites. They offer flexible cover that can be packaged with other cover. Their cover can include all risks, wind only, earthquake only and third-party liability.
23. Sompo International
Some of the features and benefits of Sompo International’s commercial property insurance.
- Flexible property insurance
- Tailored solutions to meet your needs
- Suitable for single sites and multiple sites
- A broad range of property coverage
- All risks
- Can include natural catastrophe perils
- Fire and related perils
- High hazards such as earthquake, wind and flood
- Primary, excess or quota share basis
- An international insurance provider with locally basis underwriting teams
Sompo International is an international insurance provider that has a network of underwriters in the UK to provide local knowledge and support to its customers. They offer a range of specialist business insurance to a wide range of businesses and industries such as agriculture, financial services, healthcare, technology, manufacturing, retail and real estate.
Sompo International’s property insurance covers up to $50 million for a broad range of property coverage which includes all risks. Policies can be tailor-made to meet your needs on a primary, excess or quota share basis. Their cover can include natural catastrophe perils, fire and related perils, and high hazards such as earthquakes, wind and flood.
24. NIG
Some of the features and benefits of NIG’s commercial property insurance.
- Property owner’s insurance
- Designed for residential and commercial properties
- Suited to single or multi-location properties up to 25
- Buildings insurance
- Landlord’s contents
- Public liability
- Glass and sanitary ware
- Optional cover
- Employer’s liability
- Personal accident
NIG is an insurance provider that offers a broad range of business insurance that has been designed to meet the needs of specific professions or industries. Their insurance range includes property owner’s insurance which caters for those with a single property through to multiple sites with up to 25 properties.
NIG’s property owner’s insurance can be used to cover both residential and commercial properties in the UK. Their cover includes building insurance up to £10 million, landlord’s contents, public liability up to £10 million, glass and sanitary ware. You can also choose to add optional covers such as rent receivable, employer’s liability, personal accident, commercial legal expense and terrorism.
25. ARO Insurance
Some of the features and benefits of ARO Insurance’s commercial property insurance.
- Comprehensive commercial property cover
- Material damage
- Property owner’s liability
- Alternative accommodation for residential
- Glass cover
- Trace and access
- Optional covers such as employer’s liability and loss of rent
- Legal expenses
- Commercial properties including retail, offices and manufacturing
- Available through a broker only
ARO Insurance is an insurance provider that specialises in offering cover to smaller businesses with a particular focus on property businesses and property owners. They offer a range of property insurance that includes commercial property owner’s cover which they offer through a network of brokers only.
ARO Insurance’s commercial property owner’s insurance offers cover that includes material damage, property owner’s liability up to £2 million as standard but it can be extended to £5 million, glass cover, trace and access cover. You can also choose to add optional covers such as employer’s liability up to £10 million, loss of rental income and legal expenses.
26. ARAG Insurance
Some of the features and benefits of ARAG Insurance’s commercial property insurance.
- Commercial property owner’s legal protection
- Cover that only provides legal expenses
- Property damage, nuisance and trespass
- Repossession of property
- Commercial lease agreement disputes
- Recovery of rent arrears
- Letting agreements
- Help to overcome additional business problem
- Landlord advice and tax helpline
- International capacity
ARAG Insurance is an insurance provider that offers a range of business insurance products that are designed to protect businesses from legal expenses that can arise from legal challenges and claims. They provide cover for a variety of business sizes and industries with a choice of cover level. They provide their products through brokers and intermediaries.
ARAG Insurance’s commercial property owner’s legal protection covers legal expenses only not compensation or repair costs. They provide cover for legal expenses for property damage, nuisance and trespass, repossession of property, recovery of rent arrears, settlement of commercial lease agreement disputes, as well as assistance to overcome a range of other business problems.
27. Glemham Insurance
Some of the features and benefits of Glemham Insurance’s commercial property insurance.
- Property owner’s insurance
- Flexible cover
- Caters for single and multiple properties
- Suitable commercial and residential properties
- Property damage
- Business interruption
- Liability cover
- Commercial legal expenses
- Suitable for residential portfolio owners, retail, wholesale and warehousing
- Available directly from them
Glemham Insurance is an insurance provider that is providing a different type of business insurance as they target businesses that demonstrate that they understand risk management and have put controls in place to minimise risk. They offer package insurance products which include property owner’s insurance that provides flexible cover.
Glemham Insurance’s property owner’s insurance providers cover for single and multiple sites for residential and commercial properties. Their cover includes property damage, business interruption, employer’s liability, public and products liability and commercial legal expenses. They can offer cover up to £5 million per location and £20 million per policy.
Financial Disclosure: We may be paid a fee if you purchase insurance via the Simply Business link at the top of this page.
FAQs
What insurance do you need for commercial property?
There are risks that come with owning or renting out a commercial property, and with a lot of those risks, you may have very little control over if and when they happen. Whether that’s damage caused by adverse weather conditions to break-ins, it could happen to anyone.
Commercial property insurance is designed to help protect your finances as a business. So, what type of insurance will you need in this scenario?
There are two common types of insurance that you can have; buildings insurance and business contents insurance.
Building insurance covers things like floods, fires, burst pipes, and theft. For business contents insurance, it’ll typically cover what’s inside the building, like equipment or stock.
The value you can claim will depend on the insurance providers you pick and how much cover you ask for. So, when signing up for a policy, you will need to consider how much your inventory and equipment are worth.
For some, having coverage on both is essential and having the right level of insurance may be the difference between getting your money back and being out of pocket.
Is commercial property insurance mandatory?
You’re not required by law to hold business property insurance. However, it does make sense to have commercial building insurance in place because the unthinkable can often happen when you’re not expecting it.
There’s also the risk of theft and vandalism that may occur if you’re not careful. Whilst it’s not legally required, a lot of mortgage lenders will require you to have commercial property insurance cover as one of their conditions for the loan.
You never know when you might need to claim against your insurance cover, and it can save a lot of financial problems that you will likely incur if you don’t have insurance in place.
It’s better to pay the premiums and have coverage than to simply risk it.
Who is responsible for commercial building insurance?
For commercial buildings insurance, the responsibility rests on the property owner’s shoulders. Whoever is in charge of the business premises, whether that’s the landlord or owner-occupier, will need to organise business premises insurance so that they’re covered should they require it.
It can often be the case that the landlord of a rented property will pass on the premiums as part of the tenant’s rental payments. Property owners need to actively renew insurance policies as they come to an end so that the building is always covered.
What is the difference between property insurance and business insurance?
Property insurance and business insurance tend to provide the same type of cover for consumers. However, with property insurance, business owners can usually deduct this insurance premium as expenses.
With property insurance, you’re protecting the company’s assets, whether that’s the building itself if it gets damaged, to the equipment you have within the building. For business insurance, this often includes cover such as liability insurance.
Business buildings insurance is a necessity for any commercial property in this day and age. You never know what disaster or event could occur to your property. For many small businesses especially, a lot of hard work, sweat and tears have gone into building up a company.
The last thing you want is to see that all go to waste due to an accident and having no insurance policy to cover the damage.
Can you insure a leased property?
If you’re a leaseholder or want to insure a leased property, then it’s the freeholder’s responsibility to take care of insurance for the entirety of the building. There are some scenarios where you may jointly own the property as a freehold with other leaseholders. In this case, you’ll all be collectively responsible for ensuring the building has insurance cover.
As a commercial property, insuring a leased property is just as important as insuring one that’s freehold. Again, insurance for any building is not required by law, but it should be seen as mandatory in order to protect the building and anything within it.
How do you value commercial property for insurance?
If you’re wondering how much does commercial property insurance cost, it’s imperative that you get a reinstatement cost assessment that assesses the commercial property for insurance purposes.
This involves an on-site inspection of the commercial property itself to take note of building materials, specifics of the building, including measurements, etc. All of this is integral to making an accurate valuation to insure the property correctly.
Some businesses can run into issues when they haven’t insured their commercial property enough to cover any expenditures that might need to be claimed. It’s better to get an accurate value of your commercial property to have peace of mind that the insurance coverage you have is going to protect the property fully.