Commercial property insurance typically covers the cost of repairing or rebuilding damaged buildings, replacing stock or equipment, and covering any other financial losses resulting from an insured event.

This type of insurance is for any business that owns or leases commercial property, such as offices, shops, warehouses, factories, and restaurants.

Common risks covered include fire, flood, storms, burst pipes, theft, and malicious damage.

Businesses that own their premises or are landlords of commercial property generally need this insurance.

Commercial property insurance is crucial for businesses to protect their investment and financial stability, as it can help them recover quickly after an incident.

• Coverage: Covers the cost of repairing or rebuilding the physical structure of the property, including walls, roof, windows, doors, and fixtures and fittings, against events like fire, storm damage, flood damage, vandalism, and accidental damage.
• Rebuild cost: It is crucial to accurately assess the rebuild cost to avoid underinsurance, which can leave you financially exposed in the event of a significant claim, or overinsurance, where you pay excessive premiums.
• Responsibilities: For landlords, buildings insurance is their responsibility, while tenants should consider contents insurance to protect their belongings. 

• Coverage: This protects the contents within the commercial property, such as furniture, equipment, machinery, and stock, against theft, fire, flood, and other perils.
• Types of policies:
  • Replacement as new policies: Replace damaged or stolen items with new ones.
  • Indemnity policies: Consider wear and tear, replacing items at their current value.
• Stock valuation: It’s advisable to insure stock against its cost price, not its sale price, and account for peak periods when stock levels may be higher. 

• Coverage: This protects landlords and property owners against claims for personal injury or property damage suffered by third parties (tenants, visitors, or the public) due to the property’s ownership.
• Example: A loose paving slab causing injury to a delivery person could lead to a claim, which this insurance would cover. 

• Coverage: This covers loss of income when a business cannot operate normally due to damage to premises or equipment caused by insured events like fire, flood, or storm.
• Scope: Policies may also cover interruption due to denial of access, damage to supplier or customer premises, and equipment breakdown.
• Importance: This is crucial for maintaining cash flow and ensuring the business can recover financially following a disruptive event. 

• Accidental damage cover: Covers sudden, unexpected damage not caused by an insured peril, such as a broken window.
• All risks insurance:
   Provides comprehensive coverage against a broad range of risks, with specific exclusions outlined in the policy wording.
• Named perils insurance: Covers only a predefined list of risks, such as fire, explosion, or flood.
• Flood insurance: Essential for properties located in floodplains or with a history of flooding, potentially covering damage and business interruption. 

• Rebuild cost of the building: Properties with higher rebuild costs generally have higher premiums.
• Location: Properties in areas prone to flooding or with a higher crime rate may incur higher premiums.
• Age and construction type: Older or listed buildings may require specialist techniques and materials for repairs, potentially increasing costs.
• Type of business: The nature of the business and the associated risks will influence the premium.
• Security measures: Enhanced security features like alarms and CCTV can reduce premiums.
• Level of coverage and excess: Opting for higher excess amounts can often lead to lower premiums.
• Claims history: A history of previous claims may impact future premiums. 

• Definition: The amount of money the policyholder pays towards a claim before the insurer covers the remainder.
• Impact on premiums: A higher excess can result in lower premiums but requires the policyholder to be able to cover the excess amount if a claim arises. 

• Notification: Inform your insurer as soon as possible after an insured event.
• Documentation: Gather evidence like photos, videos, and relevant documents to support your claim.
• Cooperation: Follow up with your insurer and provide any requested information to expedite the claim.
• Important note: Avoid admitting liability or attempting to settle with third parties without your insurer’s guidance, as this could prejudice your claim. 

• Responsible Person: The Regulatory Reform (Fire Safety) Order 2005 designates a Responsible Person (usually the owner or landlord) for fire safety in commercial premises.
• Responsibilities: This includes conducting and documenting a fire risk assessment, implementing general fire precautions, and ensuring compliance with the Fire Safety Act 2021 and Fire Safety (England) Regulations 2022.
• Insurance link: Meeting fire safety obligations may be a condition of your insurance policy, and failure to comply could impact claims, although some liability insurance is compulsory under the Employers’ Liability (Compulsory Insurance) Act 1969. 

• Notification: Inform your insurer when a commercial property becomes vacant, as specific conditions may apply.
• Conditions: These may include securing the property, shutting off utilities (if safe), and conducting regular inspections.