Commercial Property Insurance

Here at Brokerswood Enterprises, we work with most of the UK’s leading insurance brokers to provide you with a commercial building insurance policy that ticks all the boxes.

We have already helped hundreds of landlords to find their perfect commercial property insurance policies, that ensure they are protected against a whole host of issues including loss-of-rent to fire, loss of fixtures and fittings and accidental damage. We also can cover rebuilding costs and legal expenses with our property insurance.

We have also worked with many specialist commercial property insurers and underwriters to ensure we find the best possible commercial building insurance quote and cover for our clients at highly competitive rates. Property owners who have a mixed portfolio of both residential and commercial properties can rely on renown business insurance brokers Brokerswood Enterprises for help. This is particularly useful if you own a commercial property which has a flat or apartment above it.

What exactly is Commercial Property Owners Insurance?

Commercial property or commercial building insurance is what protects you as the property owner. Your tenant is the 3rd party company who has a tenancy agreement with you to allow them to run their business from inside your property.

Commercial Building Insurance compared to Domestic Landlord Insurance

As a commercial building owner, your tenants will differ in type compared to if you were renting out a residential property. A commercial property insurance policy will assess cover based on the level of risk your tenant’s business puts on your property and then adjust the cover accordingly.

The amount of risk compared to if you were leasing out a residential property will usually be higher due to factors such as the number of employees within the business and how hazardous the trade the company carries out is. Domestic tenants will not house numbers potentially in the hundreds, as some workforces in commercial buildings do, for example. The makeup of the building itself will also usually differ to a residential building.

What is a Commercial Property Insurance indemnity period?

Should the worst happen, and your commercial property becomes unusable from an insurable incident such as a flooding or a fire, then the indemnity period is how long you can claim from your policy for. Usually, a period of one, two or three years is available with most commercial building insurance covers.

Will my tenants still need contents insurance?

Any contents within the building that your tenant owns must be covered under their own business insurance policy. As the building owner, you are not responsible for any accidental damage to their belongings. However, if you yourself run a business from the commercial property that you own then you should take out business contents insurance.

What Does Commercial Building Insurance Cover?

It is important to pay close attention when arranging commercial building insurance, as a number of types of cover often come as part of a basic policy, but other elements exist as add-ons. As a result, you need to be sure of exactly what it is that you are paying for and whether you will be receiving everything that you need. Usually, commercial building insurance will cover damage to the structure of your property and its contents, including issues caused by fire, flooding, and vandalism. It also often includes employer’s or property owner’s liability insurance, which means that you’recovered if any third party is injured on your business’s premises - whether they're employees, tenants or visitors. Loss-of-rent insurance can also be included in a policy, which means that if you own a building that cannot be leased for a period of time due to damage or any other problem, you will be covered for the amount of rent that you miss out on. Rent guarantee insurance is another facet of commercial building insurance for landlords and covers you throughout any occasion during which your tenants are unable - or neglect - to pay their rent. Furthermore, legal expenses insurance can also be included in a policy, which means that your costs will be covered should you be subpoenaed by a tenant, employee or landlord as a result of injury or damages occurring on the premises. You can also insure your premises against subsidence and any other “special risks”.

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Who is Responsible for Commercial Building Insurance?

It’s easy - and understandable - to think that it is the responsibility of the outright owner of a property to apply for commercial property insurance. However, there are a couple of matters that it is important to note. Firstly, it is not a compulsory legal requirement for premises to be covered by commercial building insurance at all, so if you’re a tenant running a business from a leased property, it’s best not to assume that you are covered by your landlord’s policy - as it may be that they have never purchased one. Secondly, there are certain aspects that are not covered by commercial landlord’s insurance anyway, such as a tenant’s personal property. Landlords can insure contents that they have provided for use by those renting the premises, but a tenant’s purchases are their own responsibility. Any new fittings or additions installed by the tenant should also be covered by their own policy, not the landlord’s. However, the onus is on the landlord to ensure that they property they have let is in good, safe condition. Occasions where a tenant is not covered by their landlord’s commercial property insurance include instances where the tenant has caused damage to parts of the building or contents owned by the landlord. There are also aspects of employee or third party liability insurance that the tenants - rather than the landlords - are responsible for, such as injury caused by fittings or contents that are not the property of the building’s owner.

Commercial Buildings Insurance Calculator 

There are many elements that must be considered when determining the potential total cost of your commercial buildings insurance. Here is a list of the main factors that are taken into account by insurance brokers in order to decide upon the rate you will be charged:
The value of the building, including its current condition and the costs of materials used in its construction. The value of its insurable contents. Both of the above are usually added together and then multiplied by an amount that is determined depending on the level of risk to the building; for example, if the area in which your premises stand is prone to flooding or has an unusually high rate of crime involving the destruction of property, this number will naturally be higher. The nature of the activities conducted within the premises. If your company handles, say, flammable liquids or explosives, your premiums will be higher as these aspects will be considered a possible risk. Safety features of the area. Being situated near to a fire station, for example, may reduce your insurers’ perception of the risk involved in running your building, as there is a greater amount of nearby protection for your property. The size of the company. The higher your annual turnover and the more staff your business employs, the higher your premiums will be, as you will make a greater loss - and more people will be out of work - should anything happen to force production or trading to halt.

How Much Does Commercial Building Insurance Cost?

The price of commercial building insurance relies heavily upon a number of factors relating to the premises to which it is to be applied and the business it houses. For this reason, costs can vary to extreme degrees. No two companies will have exactly the same requirements, as they will not face precisely the same level of risk. Of course, working to reduce risk factors may help to bring the cost of your insurance down - for example, fitting brand new fire doors and sprinkler systems may seem pricey in the short term, but doing so is very likely to make your ongoing insurance premiums cheaper. Your insurers need to know everything, from the size of your company (including the physical dimensions of your building to your annual turnover and the number of staff members you employ), to the cost of any necessary rebuilding that would occur should the property be destroyed, to the risks involved in the business you run and the area in which you operate (e.g. the crime rate, flooding tendenciesetc.) and much more besides. Therefore, the simplest way of discovering how much you should be paying for your commercial building insurance is to get in touch with the insurance providers you are considering and approach them for an estimated quote. You can contact the Brokerswood Enterprises insurance brokers office on +66 0000 0000 00 or fill out a contact form here to discuss your needs and find out your unique commercial building insurance costs.

Do I Still Need Commercial Property Insurance?

There is actually no legal condition that dictates the need for commercial property insurance, however, the majority of mortgage providers will not issue a loan unless you have taken out a policy for your property.

If you are the owner of the property, you should definitely consider investing in commercial property insurance, as it will ensure that you are protected for your repair or replacement costs if anything happens to your property.  

If you are a tenant at a property, it is your landlord’s responsibility to obtain commercial property insurance, although you may want to take out contents insurance to cover any loss or damage to your personal belongings.

 

Can I lower commercial property insurance premiums?

There are numerous ways in which we can help you lower your commercial property insurance premiums, including:

• Analysing numerous policies by comparing coverage and prices in accordance with your budget preferences in order to ensure you are sufficiently insured.
• Advising that you increase your excess rate, which is the amount you would be required to pay out in the event of an accident. Many insurance companies will decrease your insurance premiums if you higher your excess, as they have less to pay out. We would only advise a higher excess rate if it is within your budget.
• Recommending that you pay annually, rather than paying in monthly instalments as they usually include additional administration fees.
• Advising that you avoid making claims which will increase your insurance premiums and instead build up a no-claims discount on your policy.