If you own a commercial property and are renting it out to another business, you will need to arrange specialist Buildings Insurance, or Commercial Property Insurance, for landlords.
Commercial property insurance for landlords is a specialist business insurance that provides cover for both commercial risks and the risks that come with being a landlord. Our tailored policies offer protection for an array of business properties let to commercial tenants from office blocks, retail premises, industrial or factory units.
An extensive Buildings Insurance policy can bring any commercial landlord peace of mind when letting out their property to commercial tenants.
Commercial building insurance protects from the costs of accidental damage to your commercial property both by tenants or disasters such as fire or flood that go beyond the usual wear and tear, including rebuild costs and loss of rent. While similar to a residential landlord insurance policy, it is specific to the risks of commercial property.
From burst pipes and smashed glass fronts to a Public Liability claim, a Commercial Property Insurance policy can protect your business from financial losses and reputational damage.
For most commercial buildings, Fittings & Fixtures cover would be appropriate. You can cover many assets from light fittings to the glass in your shop front. Damage to glass display windows are common and, without insurance, costly to replace. If your business premises has a large pane of glass, be sure to communicate this to our team.
If you are renting your premises to tenants and they are storing their equipment there, Business Contents Insurance will usually be their responsibility. However, if you are also letting out business furnishings, then you should purchase your own Contents Insurance for the property, particularly if your premises has common areas such as a reception or other communal area.
Other recommended commercial property insurance extensions include loss of rent (following an insured loss), terrorism cover and legal expenses
Commercial buildings insurance is not a legal requirement, but without it, you are left open to any costs of damage or destruction to the property. This is particularly expensive if you have to put up the rebuild costs of the building in the event of a disaster.
As part of your Commercial Property Insurance cover, you should also consider Public Liability insurance. Without Public Liability insurance for your commercial property, you will be liable for any compensation claims for third-party personal injury, accidental death or property damage through negligence. For example, a tile falls from the roof and hits a passer-by, or someone trips and falls down the communal stairs.
Public Liability cover is one of those policies that we recommend for almost all business owners and is a valuable part of your Commercial Landlord insurance package. Public Liability Insurance covers you in the event of third-party personal injury, accidental death or property injury.
While your tenants should have their own Public Liability cover for accidents that are a result of their business activities, as a landlord there is a chance you are the one found liable in a compensation claim. It may also be referred to as Property Owners Liability cover.
An unexpected liability claim can prove costly, and having a robust policy in place will protect you from the financial loss of legal fees and a compensation payout.
01200 309 516
Employers Liability cover is compulsory if you have any employees working for you. While there are some exceptions, most employers need it, and if you neglect to take it out when you should, you can incur hefty fines of up to £2,500 every single day.
If you employ a gardener, cleaner, reception staff or concierge, you will need employers liability protection by law, as set out in the Employers’ Liability (Compulsory Insurance) Act 1969.
Your typical Commercial Buildings Insurance policy will come with Unoccupied Property cover for up to 30 days as standard. However, if you are expecting your property to be empty for longer than 30 days, our team of commercial insurance brokers will be able to compare cover from several leading insurance providers and arrange this cover for you over the phone.
Your commercial property insurance can cover you for loss of rent in the event of an insured event. For example, following a flood or fire your property would not be fit for purpose for your tenants. Therefore, you will likely suffer a loss of rental income during the repairs.
Loss of rental income for a commercial landlord can be significant, particularly if the property is vacant for many months following a significant insurable event such as a fire or flood.
When taking out loss of rent cover, it is essential to think of the worst-case scenario and how long it would take to rebuild your entire building. Often when selecting building insurance limits, owners underestimate how long it will take to restore the property following a large disaster.
In a lot of cases, it is best to be cautious and opt for a minimum of 24 months for business interruption cover and loss of rent. Always check your policy wording when taking out cover to make sure you have the cover you think you do.
As a specialist property insurance broker Insync has access to a panel of the UK's leading commercial property insurers including AXA, Allianz, Ageas, Aviva, RSA Insurance Group and Zurich. You can compare tailored cover online in minutes, either for a single property or multiple risk addresses.
Alternatively, why not arrange a free review with one of our property insurance advisors who can help you find the right level of cover at the right price.
In addition to the commercial buildings, you may require cover for any landlords contents, such as in communal, reception areas or provision of meeting rooms as well as any items in gardens or car parks.
Property owners' liability, terrorism, loss of rent and legal expenses should also be considered.
Claims Example 1
An electrical fire breaks out in the lift shaft, completely destroying a five-storey office block. As well as rebuilding costs of £750,000, insurers incur site clearance fees and significant loss of rent payments, all of which protect the commercial landlords investment.
Claims Example 2
A tenant reported a considerable rise in their water bill. On further investigation, engineers discover damage to the underground services to the property. Insurers engage specialist contractors who replace 30 metres of pipe, digging across the property car park, the total claims costs paid by insurers exceed £35,000.
Like with any property insurance, your commercial buildings insurance premium will depend on a few factors:
All our Commercial Property Insurance policies come with the option to either pay the total cost in a single payment, or alternatively, premiums can be paid via a variety of monthly payment plans. Your dedicated property insurance broker will walk you through the various options.
Insync Insurance Solutions Ltd
9 Albany Park, Cabot Lane
Poole, Dorset BH17 7BX
t. 01200 309516
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