Commercial Property Insurance

Commercial property insurance covers damage to your business premises caused by events such as fire, flood, storm, or vandalism. It can also include cover for fixtures, fittings, and sometimes contents, depending on the policy structure.

If you lease a property, the landlord is usually responsible for buildings insurance. However, you may still need contents insurance, tenant improvements cover, and liability insurance depending on your lease agreement.

The rebuild value is the cost to completely reconstruct your property, not its market value. Professional valuations or guidance from your insurer or broker can help ensure accurate figures and avoid underinsurance.

Business interruption cover can be added to your policy and provides protection for lost income if your premises cannot be used due to insured damage. This helps cover ongoing costs such as rent and wages.

Flood cover is often included but may be subject to higher excesses or exclusions depending on your location. Properties in high-risk flood areas may require specialist cover or additional terms.

Costs vary based on property value, location, construction type, and use. Small commercial properties may cost £300–£1,000 annually, while larger or higher-risk buildings can cost significantly more.

If your property is underinsured, insurers may apply an average clause, reducing claim payouts proportionally. Ensuring accurate rebuild values is essential to avoid financial shortfalls during a claim.

You should notify your insurer as soon as possible, provide details of the damage, and take reasonable steps to prevent further loss. Your insurer will then assess the claim and arrange repairs or compensation if covered.