Commercial Building Insurance

Should the worst happen, and your commercial property becomes unusable from an insurable incident such as a flooding or a fire, then the indemnity period is how long you can claim from your policy for. Usually, a period of one, two or three years is available with most commercial building insurance covers.

Any contents within the building that your tenant owns must be covered under their own business insurance policy. As the building owner, you are not responsible for any accidental damage to their belongings. However, if you yourself run a business from the commercial property that you own then you should take out business contents insurance.

It is imperative for businesses to have Commercial Property Insurance. Whether you run a large or small business, an established firm or a start-up venture, having a Commercial Property Insurance cover will protect the company from unforeseen, unpredictable circumstances. Without Commercial Building Insurance, a life’s work on creating and building up a business could unravel in a matter of hours should your firm suffer a catastrophic event.

This policy from Rigby Financial guards your business against losses from are normally experienced following employee injury, theft and property damage. With the correct Commercial Building Insurance cover your company could more easily recover from any losses. Without this type of insurance, you are putting your business in a risky position.

Below see a list of what your commercial property insurance could include. Click each link to see the related articles:

• Buildings Insurance
• Loss-of-rent Insurance
• Property-owners liability cover
• Rent guarantee cover
• Legal expenses cover
• Employer’s Liability Insurance
• Fire & special perils cover
• Subsidence Insurance

As well as our insurance on commercial buildings we also provide various other different types of insurance:

• Property Owners Insurance
• Professional Indemnity Insurance
• Pub or Restaurant Insurance
• Surgery Insurance
• Office Insurance
• Travel Insurance
• Car Insurance
• Home Insurance
• Pet Insurance
• Landlords Insurance

It is important to pay close attention when arranging commercial building insurance, as a number of types of cover often come as part of a basic policy, but other elements exist as add-ons. As a result, you need to be sure of exactly what it is that you are paying for and whether you will be receiving everything that you need. Usually, commercial building insurance will cover damage to the structure of your property and its contents, including issues caused by fire, flooding, and vandalism. It also often includes employer’s or property owner’s liability insurance, which means that you’re covered if any third party is injured on your business’s premises – whether they’re employees, tenants or visitors. Loss-of-rent insurance can also be included in a policy, which means that if you own a building that cannot be leased for a period of time due to damage or any other problem, you will be covered for the amount of rent that you miss out on.

Rent guarantee insurance is another facet of commercial building insurance for landlords and covers you throughout any occasion during which your tenants are unable – or neglect – to pay their rent. Furthermore, legal expenses insurance can also be included in a policy, which means that your costs will be covered should you be subpoenaed by a tenant, employee or landlord as a result of injury or damages occurring on the premises. You can also insure your premises against subsidence and any other “special risks”.

It’s easy – and understandable – to think that it is the responsibility of the outright owner of a property to apply for commercial property insurance. However, there are a couple of matters that it is important to note. Firstly, it is not a compulsory legal requirement for premises to be covered by commercial building insurance at all, so if you’re a tenant running a business from a leased property, it’s best not to assume that you are covered by your landlord’s policy – as it may be that they have never purchased one. Secondly, there are certain aspects that are not covered by commercial landlord’s insurance anyway, such as a tenant’s personal property. Landlords can insure contents that they have provided for use by those renting the premises, but a tenant’s purchases are their own responsibility. Any new fittings or additions installed by the tenant should also be covered by their own policy, not the landlord’s. However, the onus is on the landlord to ensure that they property they have let is in good, safe condition. Occasions where a tenant is not covered by their landlord’s commercial property insurance include instances where the tenant has caused damage to parts of the building or contents owned by the landlord. There are also aspects of employee or third party liability insurance that the tenants – rather than the landlords – are responsible for, such as injury caused by fittings or contents that are not the property of the building’s owner.

There are many elements that must be considered when determining the potential total cost of your commercial buildings insurance. Here is a list of the main factors that are taken into account by insurance brokers in order to decide upon the rate you will be charged:

The value of the building, including its current condition and the costs of materials used in its construction. The value of its insurable contents. Both of the above are usually added together and then multiplied by an amount that is determined depending on the level of risk to the building; for example, if the area in which your premises stand is prone to flooding or has an unusually high rate of crime involving the destruction of property, this number will naturally be higher. The nature of the activities conducted within the premises. If your company handles, say, flammable liquids or explosives, your premiums will be higher as these aspects will be considered a possible risk. Safety features of the area. Being situated near to a fire station, for example, may reduce your insurers’ perception of the risk involved in running your building, as there is a greater amount of nearby protection for your property. The size of the company. The higher your annual turnover and the more staff your business employs, the higher your premiums will be, as you will make a greater loss – and more people will be out of work – should anything happen to force production or trading to halt.

The price of commercial building insurance relies heavily upon a number of factors relating to the premises to which it is to be applied and the business it houses. For this reason, costs can vary to extreme degrees. No two companies will have exactly the same requirements, as they will not face precisely the same level of risk. Of course, working to reduce risk factors may help to bring the cost of your insurance down – for example, fitting brand new fire doors and sprinkler systems may seem pricey in the short term, but doing so is very likely to make your ongoing insurance premiums cheaper. Your insurers need to know everything, from the size of your company (including the physical dimensions of your building to your annual turnover and the number of staff members you employ), to the cost of any necessary rebuilding that would occur should the property be destroyed, to the risks involved in the business you run and the area in which you operate (e.g. the crime rate, flooding tendencies etc.) and much more besides. Therefore, the simplest way of discovering how much you should be paying for your commercial building insurance is to get in touch with the insurance providers you are considering and approach them for an estimated quote. You can contact the Rigby Financial insurance brokers office on 01744 886077 or fill out a contact form here to discuss your needs and find out your unique commercial building insurance costs.

With so many insurance specialists accessible online and on the high street, why should Rigby Financial be the company you select to help protect your assets? Here are a few reasons why we think you should choose us:

• Our company dates back more than thirty years, and, in that time, we have served hundreds of returning clients. As a result, our skills and specialisms have developed endlessly, and we have been able to maintain an excellent knowledge of the wider insurance industry. Therefore, we are able to constantly look for ways to better serve and assist our clients.
• We are a family run business that offers a personal touch and an understanding, personable and proactive outlook.
• There are fewer than twenty members of staff working with Rigby Financial, which means that you’ll get to know our team of experts well. There’s no possibility of your being passed from pillar to post or speaking to advisers who don’t understand your needs or can’t recall your account history.
• We ensure that we are always there to offer help and to support to our clients, from their first consultation through to the end of their business’s life.
• We offer an honest and straightforward approach, avoiding gimmicks and flashy salesmanship.

There is actually no legal condition that dictates the need for commercial property insurance, however, the majority of mortgage providers will not issue a loan unless you have taken out a policy for your property.

If you are the owner of the property, you should definitely consider investing in commercial property insurance, as it will ensure that you are protected for your repair or replacement costs if anything happens to your property.

If you are a tenant at a property, it is your landlord’s responsibility to obtain commercial property insurance, although you may want to take out contents insurance to cover any loss or damage to your personal belongings.

There are numerous ways in which we can help you lower your commercial property insurance premiums, including:

• Analysing numerous policies by comparing coverage and prices in accordance with your budget preferences in order to ensure you are sufficiently insured.
• Advising that you increase your excess rate, which is the amount you would be required to pay out in the event of an accident. Many insurance companies will decrease your insurance premiums if you higher your excess, as they have less to pay out. We would only advise a higher excess rate if it is within your budget.
• Recommending that you pay annually, rather than paying in monthly instalments as they usually include additional administration fees.
• Advising that you avoid making claims which will increase your insurance premiums and instead build up a no-claims discount on your policy.