Published on December 21st, 2016 | by admin


Protecting Your Business Premises


Continued interest in investing in commercial property in the UK is hardly surprising. Over the past three or four years, said the magazine Money Observer at the end of May 2016, returns on such investment have achieved figures of well over 10% – certainly better than any savings account and considerably less volatile than bonds and equities.

Safeguarding the premises

Whether you have invested in the premises for use by your own business or if you are going to be the landlord whilst it is leased to someone else, you are likely to want to safeguard what has probably been a substantial investment.

That is the purpose of commercial property insurance – an essential safeguard which you may want to make sure you get absolutely right by arranging the cover through an independent, specialist broker.

What does it usually cover?

In common with many other types of insurance, commercial property insurance may be tailored to meet your particular needs and requirements – about which a specialist provider is well-equipped to help. Typically, however, the insurance centres around:

Building insurance

  • protection for the structure and fabric of the building itself against loss or damage through such events as fire, storm damage, flooding, impacts, vandalism and theft;
  • it is important to be certain about just what risks are covered by a particular policy since these may vary one from another;
  • the total building sum insured needs to be sufficient for the complete reconstruction of the premises if the building is totally destroyed (by a fire, for example);

Contents insurance

  • even if you are simply the landlord of the property, there are likely to be contents which you also want to protect against loss or damage;
  • if you are using the premises from which to run your own business, these contents might extend to all manner of expensive equipment, machinery and plant;
  • commercial property insurance typically covers the full value of any contents you own;

Loss of use or rental income

  • you depend on the use of your property for the business you are running from it or on the income you receive from tenants who occupy it;
  • that use is clearly curtailed and your business disrupted in the event of a major incident making your property temporarily unfit for its purpose;
  • if that happens, you may rely on most types of commercial property insurance to offer some form of compensation for the disruption to your business, loss of income, or loss of income from rents;

Public liability insurance

  • as the owner of the commercial property, you have a duty of care towards anyone using it, visiting it – even entering it illegally as trespassers – your neighbours and members of the public against the risk of their being injured or having their property damaged in any way connected with your ownership of the premises;
  • claims alleging your negligence in this duty of care may assume very substantial proportions and it is common for commercial property insurance to include property owner’s liability indemnity of at least £1 million.

Although these are the headings under which commercial property insurance may safeguard your premises, but there are other possibilities too. To investigate these, you might want to consult your specialist insurance broker.

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