What is commercial property insurance?
There are two types of commercial property insurance –buildings insurance and contents insurance. Buildings insurance covers the cost of repairing or rebuilding your business premises if damaged or destroyed. Buildings insurance isn’t a legal requirement, but most commercial mortgage providers will require you to you take out a policy before they give you a loan. Contents insurance tends to be offered in one of two formats- As New cover, which replaces an item that has been stolen or damaged beyond repair with a new one; and indemnity cover – this type of policy takes wear and tear into account, replacing your items at their current value. So if you bought an item several years ago for £200 and it has a current value of £100,you will receive the lower amount if you make a claim for the item.
What can be covered by commercial property insurance?
The right commercial property insurance policy will cover you for a range of eventualities that might lead to damage to your commercial property or its contents, such as:
- burst pipes
- falling trees
- fire and smoke damage
- damage due to riots or other human causes
- storm damage
- theft from the building itself i.e. roof slates
- Theft cover – look for a business contents policy that covers theft during business hours or theft where there is no property damage or forced entry
- Accidental damage cover
- Out of Office cover – insurance for work equipment when it has been removed from the office, for example while travelling in a company vehicle or while and employee is working from home
- Personal property cover for colleagues and visitors
- Data loss cover – if you lose paper or digital data after an incident such as a fire, you could be covered or this eventuality
What is not covered by commercial property insurance?
Most commercial property insurance policies will not cover you for a few specific eventualities such as general wear and tear on the building such as might be expected over the course of time. You will also not usually be covered for damage to the building due to war or terrorism.
What is not covered by commercial property contents insurance?
Commercial vehicles will usually need to be insured separately.