What Is Commercial Buildings Insurance? 

If your business uses commercial or industrial space, then you will need to consider the importance of commercial property insurance. It’s usually required to cover all types of buildings and properties.

There are two main types of commercial property cover- buildings insurance and contents insurance. Both types of commercial property insurance can be used to protect your business assets. Together, these cover your business premises, stock and equipment against risks such as:

  • Burst pipes 
  • Falling trees
  • Fire
  • Flooding  
  • Riots
  • Storms
  • Theft

Do I Need Commercial Buildings Insurance?

Commercial property insurance is not required by law however the majority of mortgage providers will insist that you have buildings cover before they agree to a loan. As your business will likely rely heavily on its commercial space, it comes recommended that you insure any piece of property against perils such as fire, theft and flood. To be adequately insured, your level of indemnity will need to be a reflection of the cost of rebuilding the property in the worst-case scenario.

In addition to property cover, you can extend your policy to include wider aspects of business insurance including legal liabilities such as Property Owner’s Liability or Employers Liability cover for any staff you employ. Other considerations could include Loss of Rent (following an insured loss), Terrorism, and Legal Expenses cover.

If you rent your premises, acquiring buildings insurance falls to your landlord, however, it is recommended that you consider contents insurance to cover the costs of having to replace any stock or equipment. 

Understanding your Business Insurance Requirements

Risks come hand in hand with being a business owner, so you will likely understand that some risks are often unavoidable. However, having the right insurance protection in place means some risks can be managed.

Ultimately, It is important to find out what each policy offers before making any decisions on which you go with. This will ensure that you are taking out the insurance policies that meet your needs and fulfil your expectations.

How Much Should I Insure My Commercial Property For? 

The cost of commercial property insurance in the UK is dependent on a few factors. These include the type of business and its size – the larger the company, the more it will cost to insure. The location and nature of the building will also influence the cost, with premiums likely to be higher if the building has a high rebuild cost or is in a high flood or crime zone.

When comparing business insurance quotes we recommend looking at more than just the final figure. Ensure that you find the one which offers the best protection for the risks in your field and of course buy from a reputable insurance provider.

Most insurance companies will not help determine the cost of rebuilding your property. The buildings insurance sum insured for your property will also vary depending on the construction method used and the access to the property.

Top quality insurance providers will arrange tailored cover to your business whether you are the owner of one commercial property or have a portfolio of hundreds. Commercial property insurance brokers are a great way of finding the best solution for you as everyone’s situation is going to differ.