What Is Commercial Property Insurance?

Commercial Property Insurance is cover that can prove extremely important to the owner and management staff of any business that has its own premises properties or land and uses it for profit or to further the interests of its practices. It’s is not required by law for organisations to obtain this kind of insurance, but you may find yourself in considerable trouble if your business is found liable for something that occurs on its premises and is forced to defend itself against claims for compensation without adequate cover. There are also other matters that may prove difficult without Commercial Property Insurance, such as being approved for mortgages.






What Does Commercial Property Insurance Cover?

Once you have purchased Commercial Property Insurance, you and your property will be covered in instances of accidental damage to the premises or any contents you may have purchased for the use of your business (though in many cases you will need to confirm the additional cover for contents with your insurance broker). You will also be covered for purposeful damage or theft by any tenants or employees, and your policy should also include public liability insurance - meaning that if any third party (whether a customer, supplier or any other individual not employed by your company) is injured or has their property damaged as a direct result of coming into contact with your premises, the compensation and legal costs you’ll may be liable for will be covered. Commercial Property Insurance can help you if your building is flooded or damaged by fire or any other natural disaster, and a policy will also ensure that you are protected if your building stands unoccupied for the maximum of a length of time specified by your broker. Finally, if a claim is brought against you that is in any way connected with your property or premises, your insurance policy should be able to cover your legal fees up to a pre-agreed point.

However, before you obtain a Commercial Property Insurance policy, you need to be aware that there are a number of types of cover that are not automatically included in a policy of this kind, and some that are never included in Commercial Property Insurance at all.

Can Optional Cover Be Included??

It’s extremely important that you discuss the type of property your business owns or rents, including its contents and the type of practices undertaken therein, in great detail with your insurance broker before you decide on a policy. Certain “add ons” that you may not have originally been aware of may be available to cover different and specific elements of your premises. For example, glass windows and display cases, air conditioning systems, security systems and different types of roofing can often be insured under the same policy as all your other cover, and, as mentioned, you may be required to confirm whether or not you would like contents insurance included. Along with this, you can also often request Employer’s Liability Insurance, cover for instances of terrorism, cover for contract works, development, engineering and inspections and additional or extended cover for legal expenses - including for any claims brought against you by any tenants of your property or vice versa.


What Kinds of Cover Are NEVER Included in Commercial Property Insurance?

We’ve mentioned that accidental damage and damage caused by natural disasters or “Acts of God” are usually covered in a Commercial Property Insurance policy, but one of the things that is never included is cover for wear and tear that might affect your property or its contents over the years. Rust, flaking paint, stains and other age-related issues cannot be claimed for on your insurance. Additionally, you won’t be covered for any problems caused by poor or defective workmanship. In this event, if the issue has been caused by a contractor, you will need to bring a claim against them in order to be compensated. Otherwise, if your own employees undertook the problematic work, then you will not be covered at all and will need to rectify the issue yourself.

If you would like to learn more about Commercial Property Insurance or require further assistance or advice from expert brokers and legal specialists surrounding any issues you may have in relation to this matter, simply get in touch with Anan Insurance Broker Company Limited today on +66 0000 0000 00 or send an email via [email protected]. Their friendly team will be happy to help you.