If you are the landlord of property designated for commercial or mixed use, specialist commercial property insurance for landlords offers robust financial protection for your buy to let business and its assets. The latter includes not just the buildings itself but also its fixtures and fittings.
This kind of business property insurance also typically offers potentially critical landlord liability indemnity cover that might save your business in the face of claims made by third parties who have sustained an injury or had their property damaged on or through contact with the commercial property you own.
When it comes to sourcing your commercial landlord buildings and liability insurance or your mixed-use property cover, look no further than the expertise and experience we offer as brokers here at Cover4LetProperty.
What does commercial buildings insurance cover?
Let’s take a closer look at being such a landlord and just what commercial property insurance for landlords typically may cover:
Building insurance
- any investment in commercial property is typically substantial. You will want to safeguard that investment with reliable insurance for the structure and fabric of the premises – the core element of building insurance;
- although the exact range of protections may vary from one building insurance policy to another, typically they may offer financial protection against such major risks as fire, escape of water, flooding and storm damage, impacts, vandalism, and theft;
Contents insurance
- as the landlord, you may own plant, machinery, or other valuable fittings installed with the commercial premises, and all this may be safeguarded with the contents insurance incorporated into your commercial property insurance for landlords;
- your tenants or leaseholders are free to arrange cover for contents they own;
Property owner’s liability
- as the landlord and owner of the commercial property, you may also be held liable for incidents leading to the injury or damage to the property of individuals visiting or otherwise in contact with the premises;
- property owner’s liability indemnity offers financial protection against such claims;
Loss of rent and business disruption
- in the event of a major insured incident, the premises may need to close pending suitable repairs and reinstatement;
- with the premises closed, your tenants or leaseholders are likely to withhold rent for the duration of the disruption to their normal business operations;
- some commercial property insurance for landlords policies typically provide compensation for such loss of rental income or business interruption – within prescribed limits and for a determined period.
Commercial property insurance for landlords is eminently versatile and adaptable. Many policies may offer optional add-ons such as legal expenses cover (for example, in disputes with your tenants), and accidental damage.
Policies may offer still greater flexibility enabling you to tailor cover for shops (where cover against breakages to your shop windows might be important), offices, warehouses, or mixed-use buildings.
Commercial buildings insurance claims
In the worst-case scenario, you might need to claim against your commercial property insurance for landlords. The type of claim you are likely to make, of course, depends on the nature of the premises, the particular commercial use, and the location. In some cases, exclusions may apply.
Theft, vandalism, and malicious damage may be perils encountered by practically any commercial building, wherever it is situated – leading to claims upon your commercial property insurance for landlords.
If the premises house a manufacturing plant, for instance, fire – or even explosions – may be a risk. And, depending on the location of the commercial premises, the relentless rain encountered in some parts of the country may lead to an ingress of water even before flooding becomes cause for an insurance claim.
Escape of water in commercial premises are not uncommon. It might be easy to understand how relatively easily these may arise – with highly disruptive and costly results. Imagine, for example, something as simple as a dripping tap that is left to flow when the premises are closed for the weekend or holidays. An otherwise minor maintenance issue can develop into a full-blown emergency and a major escape of water if there is no one there to raise the alarm or take early action.
Whatever the crisis, though, the cover provided by commercial property insurance will ensure your prompt recovery from any such emergency and the steady continuation of your rental income (notwithstanding any policy exclusions of course).
Why specialist commercial landlord insurance cover is essential
Commercial properties operate under different risks from residential lets, which is why they need bespoke insurance rather than a standard landlord policy. Many general landlord policies exclude business use entirely, leaving gaps in cover if a tenant trades from the premises.
Specialist commercial property insurance ensures landlords are properly protected for business tenancies where standard landlord policies may not apply.
A specialist broker – such as us here at Cover4LetProperty – will ensure that your risks remain covered and that your business is adequately protected in ways that standard landlord insurance is unlikely to provide.
How to choose the most suitable commercial insurance policy
Choosing the appropriate commercial property insurance, of course, depends on the particular premises you have let or leased to tenants and the type of business the latter operate.
You are likely to compare insurance policies, therefore, according to the type of tenant you have, the lease agreement you have made, and the use to which your premises are put – and the risks to which the building is therefore exposed.
To meet these broad but critical demands, you might want to ensure that the broker you choose is authorised by the Financial Conduct Authority (FCA) and has experience and expertise in commercial risks.
Next steps
When you arrange your business property insurance with us here at Cover4LetProperty, your investment is safe. We have the expertise and experience to tailor appropriate commercial property insurance for landlords. So, ask us for a quote online or give us a call on 01702 606301 to speak to a member of our team.
Further reading: Complete guide to being a commercial property landlord.
