Commercial building insurance, also known as property insurance or landlord building insurance, is specific protection for people who let their out their property or properties to third parties for commercial use. Their tenants tend to be businesses, groups of businesses or organisations who have a rental agreement, giving them the legal right to inhabit said property.
How does commercial building insurance differ from personal building insurance?
Commercial buildings typically include Office Buildings, used mostly as a workspace for people carrying out administration and considered one of the safest insurance risks; Warehouses, which are commercial buildings used primarily for the storage of goods; Retail Outlets, the most common type of commercial building in the UK, ranging from kiosks to small high street shops to great sprawling department stores; and Factories, which are similar to warehouses in their construction but obviously also house various different kinds of manufacturing process.
Each of these types of building comes with its own considerations when it comes to what type of insurance policy they will have to take out and how much premium they will have to pay. Office buildings typically incorporate the least risk and factories often the highest, depending on what is manufactured on the premises and what kind of hazardous materials are involved in the manufacturing process.
Specialist insurance products may also be required to cover the different kinds of heating and electrical systems each of these building types have.
Domestic tenants don’t run as many risks as commercial property tenants, as they don’t use industrial equipment or deal with dangerous materials, and therefore the insurance policies that they require are generally much simpler.
What are the main types of cover?
As well as protection against fire, water damage, vandalism, landlord’s contents, accidental damage and so forth, commercial building insurance also covers many different eventualities, including:
- Property owners’ liability, which compensates third parties for any damage or injury caused to them because of owners’ negligence. It is the landlord’s responsibility to make sure that all property is adequately maintained.
- Rebuild cost if your property is fully or partially destroyed.
- Consequential loss if your property becomes uninhabitable following, for example, a fire. The insurance policy will cover the rent you will miss out on while your property is being rebuilt.
- Legal cover if you happen to end up in a costly court case.
- Malicious damage caused by tenants.
- Flat roof warranties, which are specific clauses that cover potential damage caused by leaks sustained by flat roofs.
Thompson & Co Insurance Brokers are commercial building insurance experts who can help arrange cover that is specific to your own unique circumstances, even if, for example, you’re looking for a single policy to insure commercial properties with domestic properties attached. Whatever your specific requirements, we have a team of expert insurance brokers who are waiting for your call and would be very happy to discuss your unique situation.