What is Included in Commercial Property Insurance?

Many clients ask us what is included in commercial property insurance, as policies can vary depending on the insurer and the level of cover chosen.

Regardless of the type of property you own, having insurance in place is essential. For commercial properties in particular, unexpected damage, whether minor repairs or major incidents, can lead to significant financial strain. Without adequate cover, you may be forced to absorb these costs directly, potentially impacting your business operations. Commercial property insurance helps safeguard against such risks by covering repair and replacement expenses, ensuring that unforeseen issues don’t disrupt your cash flow or increase your overheads.

What is commercial property insurance? 

Commercial property insurance is a type of building insurance designed for owners of business premises, such as cafés, offices, and industrial units. It provides protection against damage to the property itself and can also be purchased by landlords who are letting the premises to another business.

What is included in commercial property insurance?

Commercial property insurance ultimately covers the costs associated with repairing or rebuilding your property. It will cover risks such as:

• Fire;
• Flood damage;
• Burst pipes;
• Riot damage;
• Theft; and
• Storm damage.

You may have the option to enhance your insurance policy with additional cover, depending on the level of protection you've chosen. In some cases, these add-ons may already be included. A common example is public liability cover, which offers vital protection against:

• Injuries sustained by third parties on your business premises.
• Accidents or incidents during activities held on-site that may cause harm.
• Damage caused to third-party property.

This type of cover can be essential for safeguarding your business from unexpected claims and liabilities.

What isn’t included in commercial property insurance?

As with most types of insurance, there are exclusions. Property insurance may exclude things like:

• The premises being unoccupied for a specific amount of time; 
• Theft that wasn’t caused by forced entry;
• Wear and tear;
• Contents of your property, which are usually covered under a separate contents insurance policy; and
• Policy excess..

Whether you've already secured your insurance or are still in the process of choosing a policy, it's essential to thoroughly review the terms and conditions. Pay close attention to what is covered, and just as importantly, what isn't, so you can avoid any surprises down the line.

What’s the difference between commercial property insurance and business buildings insurance?

While commercial property insurance and business buildings insurance are very similar, business buildings insurance usually only covers the premises you use for your own business, rather than a property you let to another business.

If you’re looking for support with your commercial property, our Commercial Property Solicitors are here to help. Whether you’re looking for support regarding sales and acquisitions, you would like to negotiate leases or you’re looking to create conditional contracts, we can offer expert advice and guidance. 

Book a meeting with us today.