Commercial Property Insurance: What's Covered?

It’s essential to safeguard your business, and commercial property insurance is there to provide a safety net to keep a business going if something unexpected happens to the premises.

When you get a policy, it’s important to understand the specifics of your policy. This is crucial for making sure that you’re appropriately covered for your business needs.

Here's a more detailed look at what might be included in commercial property insurance:

Property Owner's Liability

This cover is often included, but might be available as an add-on. It protects you against liabilities which might arise from injuries or damage caused by maintenance issues, like loose flooring or uneven steps. The owner might be held responsible for this kind of accident, so this cover can help mitigate potential financial losses.

Rebuild Cost for Commercial Property

In worst-case scenarios, like total destruction due to a fire or severe weather, it’s important that you’re covered for the cost of reconstructing your premises to their former condition. Being underinsured can lead to catastrophic financial shortfalls that could jeopardise the future of the business.

Rent Losses

If your property becomes unusable due to an insurable event like fire or flooding, this cover helps to recover lost rent. This ensures that you’ll receive the expected income while the property is being repaired, which helps to maintain financial stability during business interruptions.

Contents Cover

This cover is especially relevant for businesses such as cafes or salons, where the property is outfitted with specific equipment under the tenancy arrangement. Contents cover protects against the loss of furniture, equipment, tools, inventory, and supplies due to theft, damage, or destruction, including equipment breakdowns.

Accidental or Malicious Damage

You should consider the potential of both accidental and intentional damage, and it’s up to you whether you want to include either or both in your commercial property insurance policy. Your business operations and security measures can help you to decide.

When choosing your commercial property insurance, you should read the policy documents thoroughly to make sure that all necessary cover is included. Assessing your business's specific risks and discussing them with your insurer can help to personalise the policy.