Commercial property owner’s insurance
From natural disasters, accidental damage and subsidence issues, through to tenants that damage your property or don’t pay the rent, commercial property owners have plenty to worry about. At Business Insurance Service, we aim to reduce that worry by providing commercial property owners with insurance that protects your financial assets, your potentially your personal assets, as well as your businesses reputation. Our selection of core cover and optional extras means that no matter what happens, you’re protected from the potential financial fallout that can follow a wide variety of scenarios.
Why choose commercial property insurance?
While buildings and contents insurance is a must-have for any property owner, it pays to remember that for commercial property, the parameters are very different. That means normal buildings and content insurance simply won’t cover the specific circumstances that are applicable to commercial property.
All-risk and defined perils
Commercial property insurance falls into two categories – all-risk and named or defined perils.
All-risk generally refers to losses or damage that is not specifically excluded by the policy. For example, if your property is damaged by flooding and flood damage is not specifically excluded in your property insurance, then you will be covered.
However, because the lines between all-risk events and the legalities of insurance documents can become blurred if not outlined clearly, it’s always wise to double check and look for policies that include defined perils in plain English. A defined peril is enumerated in a policy and can be anything from flood or fire through to terrorism, subsidence, accidental damage, and even malicious damage.
It’s important to know exactly what your insurance covers you and your property for, and if necessary get it clarified by your broker.
Building insurance for commercial properties
Part of any commercial property cover will be building insurance, and at Business Insurance Services, we put a particular emphasis on this aspect of insurance. Why? Well, because this is where the majority of commercial property insurance claims come into play. Again, it’s essential to know exactly what your buildings insurance section of your policy covers, specifically:
- What defined perils are covered
- What level of cost for repairs or rebuilding is offered depending on the cause of the claim.
It’s particularly important to understand which items are covered by your buildings insurance including:
- Structural repairs (walls, roof, and floors)
- Fixtures and fittings (particularly important if you’re claiming for flood or fire damage)
- Car parks, garages, and public walkways
- Pipes, ducts, wiring and cables.
Reinstatement or indemnity?
Commercial property owners often insure their properties on an indemnity rather than a reinstatement basis. That means if something does happen then your insurance will only pay out enough to allow you to bring the property back to the condition it was in before the event. This is referred to as a reduction for ‘wear and tear’, and can result in a much smaller pay-out. A reinstatement policy means that you’ll be able to repair or refurbish the buildings to an as-new standard, based on the insured value of the property (the total cost to rebuild and repair).
Whatever policy you take out, you will need to make sure that it reflects not just the true value of your property, but the effect of inflation throughout the life of the policy. A piece of ‘prime real estate’ in the middle of a desirable commercial area can increase in value considerably over the course of a year – is your commercial property insurance a true reflection of your property’s value both now and in the future? We can make sure it is by future-proofing your policy and giving you the right level of cover both now and for the months ahead.
How we can help at Business Insurance Services
Thanks to years of experience and a team of brokers with the expertise and specialist knowledge to provide you with the most effective insurance cover, we’re your insurance business partners. We use our position as a preferred brokerage to source some of the best and most cost-effective policies for our clients, whether you’re a small enterprise or a multi-national organisation with multiple sites.
We’re excited to provide MyWave Connect to our clients. This resource portal is your one-stop source for not just insurance but all your risk management, compliance, safety, well-being and other business needs.