Commercial Property Insurance is a must for all those companies and individuals with premises that they do business from or have as an investment.
There are two types of insurance – buildings insurance and contents insurance
Buildings cover
This is not a legal necessity however most mortgage providers will insist that you have this before you can take out a loan. It will cover the cost of repairing or rebuilding your business premises if damaged or destroyed. Typically it will cover you for instances such as burst pipes, falling trees, fire, flooding, riots, storms, subsidence , damage or theft.
Buildings should be insured for the rebuild value of the property not it’s sale price or current market value, but also taking into account all the structures on the property, not just the main building.
If you rent business premises your landlord will organise the commercial buildings insurance but you will still want to take out contents insurance for your stock and equipment.
Contents Cover
Commercial contents insurance covers the cost of replacing stock or equipment if it is stolen or damaged.
This cover can be obtained as replacement as new or indemnity (taking wear & tear into account and at current market value).
It is wise to make sure that your cover amounts for stock will be enough or the policy flexible enough to cover times of the year eg Christmas where a larger amount of stock will be held.
Additional covers
Business Interruption gives cover that comes into effect if you cannot do business as normal as a result of an event that does damage to your building or equipment. It will usually be offered to businesses alongside the buildings insurance cover.
Landlord’s contents cover
Will insure you if any fixtures or fittings are stolen or are damaged by fire and flood
Rent receivable
Protects against loss of rental income caused by any damage to the property which means that the tenant could no longer carry on working at the premises. It covers any shortfall in pre-tax profits that might happen as a result of the damage, and increased costs of running the business.
Property Owners liability cover
This will cover you if a third party is injured or their property is damaged in the course of you carrying out your business.
Employers’ liability cover
Cover in case one of your employees is injured in the course of their work.
Some insurers also give specialist help to Commercial property owners such as emergency telephone hotlines, special Health and Safety advice or additional legal expenses cover.
This is an area where it is useful to have an expert Insurance Broker to help you get the right policy for you, to make sure that your investment is protected. If you have any queries about Commercial Property Insurance or would like some expert advice on whether or how to take out insurance then you can give Cascade Insurance Services a call today on 01233 512548.
