28 Feb

What Should Your Commercial Property Insurance Cover?


Whether you own a single commercial property or a whole property portfolio, it’s essential to ensure that your investments are covered against unforeseen events such as damage or theft with a specialist commercial property insurance policy.

What is classified as commercial property?

Essentially a property that is not used for a residential purpose, a number of different buildings are classified as ‘commercial’, including:

  • Offices
  • Shops
  • Restaurants
  • Bars
  • Pubs
  • Factories
  • Warehouses
  • Guest houses
  • Holiday rental properties

What is included in a commercial insurance policy

You can tailor your commercial insurance policy to meet your own specific property needs, with types of cover available to protect:

  1. Buildings – commercial business insurance will provide cover for the physical aspects of the commercial property in the event of damage caused by flood, fire or theft. Cover may include the windows and shop front (if applicable)
  2. Contents – covers any loss or damage to fixtures and fittings such as furniture, equipment and machinery in the event of a theft, fire or flood
  3. Acts of terrorism – covers damage to property and destruction of buildings, fixtures and equipment as a result of an act of terrorism. This cover may also cover losses as a result of business interruption, plus third party liability claims associated with an act of terrorism
  4. Business interruption – if your commercial tenants have to cease trading as a result of a fire, flood or act of malicious damage, you can cover the resulting loss of income
  5. Rent receivable – if your commercial tenants are unable to run their business from the property as a result of loss or damage and have to vacate, specialist insurance can cover the lost rental income
  6. Stock and cash – some bespoke commercial property insurance policies will provide cover for any stock and cash kept on the premises that is damaged or lost as a result of theft
  7. Public liability cover – protects you if a third party such as a contractor or visitor is injured or their property is damaged on the commercial premises
  8. Employers’ liability cover – protects you if an employee is injured at work or on the property

What does office insurance include?

A specialist office insurance policy may be the most suitable means of covering a commercial premises such as an office, as the policy provides cover for key business areas in one comprehensive policy.

An office insurance policy will include:

  1. Commercial business buildings insurance
  2. Commercial contents insurance
  3. Public liability insurance
  4. Employers’ liability insurance
  5. Business interruption insurance

Optional commercial insurance cover

While a standard commercial insurance package may meet your needs, optional extras can also be added to your policy if required, including:

  1. Legal cover – covers the costs of any legal advice and assistance in the event of a claim from a third party against you or the commercial premises
  2. Goods in transit – if you transport goods such as samples or prototypes on an infrequent basis, it is advisable to cover these items against loss, theft or damage

The correct insurance cover will ensure your commercial properties are sufficiently protected, providing you with the peace of mind that your portfolio is protected.

If you require any advice or assistance regarding any aspect of commercial property management, commercial property sales or purchases, get in touch with us and our expert team will be happy to advise you.

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