An introduction to commercial property insurance
Protect your commercial properties from a wide range of risks and perils
Whether your business owns factories, warehouses, office buildings or retail units our team of business insurance specialists can provide you with quotes for a range of covers. Our Commercial Property Owners Insurance is designed with commercial landlords in mind with cover typically insuring against damage to the building and certain fixed contents, offering protection in the event of losses caused by incidents such as fire, flood, storm, lightening damage as well as accidental damage to name but a few. With commercial property insurance from The Insurance Octopus in place your landlord’s business is covered against a wide range of potentially unexpected events, enabling you to do what you do best: run your business.
What your Commercial Property Insurance policy includes
Property Owners Liability
Property Owners Liability might not seem necessary at first; with many landlords expecting their tenants to have their own public liability cover in place should an accident involving the public occur. However as a landlord and commercial property owner you are in fact liable should injury or property damage be caused due to negligence. This means if your property is not adequately maintained and a claim arises due to your negligence in maintaining the property, you will in fact be liable.
Our Property Owners’ Liability cover is available with limits of 1m, 2m, 5m or 10m.
Covering your building ensures that you are protected for the costs of repairing damage to the property or even a full rebuild as a result of an insured incident. Seen as one of the most critical parts of commercial property insurance, it’s essential that the sums insured are correct in order to avoid under-insurance. If you are under-insured, the sum declared will be lower than the actual cost of a rebuild. Meaning should a rebuild be required or even a less serious claim a reduction in payout may be due.
Commercial landlords are not responsible for any accidental damage caused to a tenant’s property and belongings. Anything that the tenant owns will need to be covered under their own business insurance policy. However your commercial property may include items such as commercial fridges which you as the property owner would seek to insure under your own policy.
Loss of Rent
Loss of rent cover can be included in any commercial property policy with it providing cover should your property become uninhabitable from an insured event such as a flood or fire. Loss of rent insurance will then reimburse your business for rent you would therefore be unable to collect from tenants. The period of cover will depend on the indemnity period set. Cover is available for 12, 24 or 36 months. Your indemnity period should be carefully considered, often with a worst case scenario in mind. It may for example take years to rebuild your property and find new tenants following a loss.
With additional legal cover you can get help with covering the costs of legal action. This could come is use for example after taking court action for non payment of rent, evicting a tenant or defence of prosecutions.
Unoccupied Property Cover
Your property will likely face periods of being unoccupied. During these periods without tenants your property will be more susceptible to a variety of risks such as squatting and break-ins. We can therefore tailor your cover to include cover for the periods without tenants.
Typically insurers will allow a period of 30 days for the property to be unoccupied before requiring a specialist Unoccupied Property Owners policy this could for example be due to a changing of tenants. Remember to ALWAYS check the Terms & Conditions of your policy as some insurers need to be informed as soon as the building becomes vacant.
Understanding commercial property insurance
Commercial property insurance can at times be a minefield of different covers. Each policy we sell is tailored to meet the customers’ needs. Insuring a commercial property is not massively dissimilar to insuring a residential property, however there are some distinct differences. Commercial properties are often not built of standard construction, (bricks, mortar, and stone and roofed with slate, tile, metal or concrete) where as residential homes more often than not are standard. Commercial buildings are often built with a flat roof and contain more complex wiring and electrical systems. Repairing a commercial property will often require more time and costs than a residential property. When quoting you for your commercial property owners insurance we will also look at the potential uses of your building and tenant types. With cover adjusted to match the level of risks that your tenants might pose to the property.
Why you need Commercial Property Owners Insurance
Commercial property insurance provides comprehensive business cover for commercial property owners i.e. those letting out their properties for commercial/ business use. Disaster can unfortunately strike at any time, with little to no warning, but with the right cover in place and adequate sums insured our tailored insurance cover can provide unrivaled levels of peace of mind.
Types of commercial property perils we can cover
As a property owner you’ll appreciate the list of possible perils can be extensive, including anything and everything from fire and floods to theft and accidental damage. So with these in mind, you’ll understand it makes good sense to ensure you have more than adequate insurance cover in place to cover your business should the worst happen.
Why choose us for your Commercial Property Insurance?
We proudly make buying insurance different and our cover comes with a range of benefits.
Up to £5 million of cover
Claims can be expensive, which is why we offer up to £5 million worth of public liability cover for property owners.
Fast specific cover
To help save you both time and money. We compare prices from a range of different insurers so you don’t have to.
A specialist who knows your industry
We'll connect you with an agent who is an expert in your field. They understand many of the challenges you face, and can truly get to grips with the type of cover you need.
Easy claims process
Accidents can happen, so when something does go wrong you can rest easy knowing our team is on hand to make the claims process as quick and stress free as possible.
Octopus customer rewards
We pride ourselves on the value we offer our customers, and with Octopus Customer rewards we give our customers a few additional benefits to their insurance such as discounts and offers to save them money.
No mid term fees, ever
We don’t charge any mid-term fees at all during the life of your policy – so there are no hidden fees following any changes you might need to make.
Commercial Property Insurance FAQ's
Get the answers you're looking for
What is Standard Construction?
Standard Construction is the bricks and mortar that make up a property, quite literally. Most commonly used in conventional residential property construction, it refers to anything that is typically used to ‘make’ a house, including but not limited to bricks and mortar or stone and slanted roofing made with slate, metal, tile or concrete. In commercial properties, Standard Construction tends not be used, with more unusual materials and complex designs involved in the building process.
What happens if the tenants leave the premises?
If your property is to be unoccupied for a significant period of time then you might wish to consider taking out unoccupied property insurance.
What is the rebuild cost of my property?
This isn’t a figure that can be set in stone for your property without a proper survey and accurate sum of all the costs required should your property need to be rebuilt. An accurate and up to date costing list, including anything from materials to labour to specialist work is essential when calculating commercial property insurance, to make sure that you are not under-insured.
How commercial property insurance works
Examples of Commercial Property Insurance in action
A £3,000 landlord fire hazard
A landlord owns a commercial property which he lets out to a tenant. The tenant pays £1,000 rent per month but there is a fire one day that makes the property uninhabitable. Due to this, the tenant has to move out and therefore will not be paying the rent as a result. The landlord is covered under his Loss of Rent policy and this means that he does not lose out on the three months rent due until the property is inhabitable again.