If you own a building from which a business operates – whether that’s your own business or one that you let the property out to, it’s generally deemed a 'business premises'. Just as you might protect yourself as the owner against injury and illness, it's worth protecting the bricks and mortar of the building – as without it, your business income could be damaged.
Cover for your commercial property
Within your commercial property insurance cover will most likely be buildings insurance. That should cover the repair or rebuild of a property if something happens to it. You'll need to check each policy to see what each company considers 'insurable,' but usually it means things like fire, flooding, fallen trees and burst pipes.
To find out how much to insure your building for, use the Building Cost Information Service to help you work it out. https://calculator.bcis.co.uk/.
Valuing your stock and equipment
Once you’ve decided you need buildings insurance, you can add contents cover. No one wants to consider the prospect of losing thousands of pounds worth of stock, but if you do have valuable contents on your premises it’s important to keep its valuation up to date on your policy. That way, you’re properly covered should the worst happen. There may be times that you hold more stock than normal, so make sure you update your policy as and when you need to. It might make your premiums more expensive for a while but you can always decrease it when the stock is lower again. Don’t forget that business insurers may charge an admin fee to make amendments to policies.
Depending on what your business is, you may have fixtures and fittings to consider. If your business is a shop, for example, there may be many items that don't 'belong' to the building but aren't stock either. You can opt to cover these too if you choose buildings insurance.
Loss of Rent
If you rent out a commercial property to tenants, and something were to go wrong that meant they couldn’t operate from your property any more, you could lose valuable income. One option with your commercial property insurance is add loss of rent cover.
Depending on the policy details and how you set it up, this cover essentially means that you can continue to receive your monthly rental payment, even if there is no tenant in the building to pay it. There are terms and conditions involved so do read them carefully to make sure you’ve got the right cover.
Every business is different, which is why there are plenty of company types to choose from when you compare business insurance with us. We’ll ask you about your business and explain the types of cover as your quote progresses. Give it a try – one day you could be glad you did.