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What does commercial property landlord insurance cover?

According to figures published by Statista on the 11th of June 2021, the total value of commercial property in the UK at the end of 2020 was estimated to be more than £1.08 trillion, making this sector of the property market the second largest in the whole of Europe.

It remains a buoyant market, with more than a further £10.5 billion invested in the UK’s commercial property market in the first three months of 2021 alone, according to statistics produced by estate agents Savills on the 26th of April.

Even these figures probably do little justice to the sheer range and diversity of what is defined as commercial property – everything from shops and retail outlets to surgeries, restaurants and cafes to wine bars, pubs, and takeaways, factories and workshops, offices, industrial units, and warehouses, blocks of flats and other residential units, to name but a few.

Commercial property insurance

Whatever the use or purpose, the commercial property in question is almost certain to be critical to the viability and success of the business it houses. The building itself, along with its contents (if required), is sufficiently valuable to require the protection of commercial property insurance.

The types of commercial property insurance are as varied as the premises themselves and may even cover mixed-use structures where part of the building is in commercial use and the remainder is residential.

Other commercial property insurance policies may be written to cover a whole portfolio of different properties – bringing the protection each of them needs under one umbrella with the convenience of a single annual renewal date and the discounts typically available when insuring multiple properties with the same insurer.

Unoccupied commercial property insurance policies are also typically available for when the premises are vacated or closed down for longer than, say, 30 consecutive days or so (the precise interval varying from one insurer to another).

What does property landlord insurance cover?

Because commercial property insurance policies are written for such a very wide range of different premises – each of which might be put to different uses – the policies are also wide-ranging in the nature and extent of the cover provided.

Typically, however, you might expect to see cover for some or all of the following risks:

Building insurance

  • at the heart of practically any type of property insurance is the protection of the structure and fabric of the building itself against a wide range of potentially serious risks such as fire, explosions, flooding, storm damage, impacts (from vehicles or falling objects), vandalism and theft;
  • building insurance is critical whether you own the premises or occupy them as a leaseholder – in the latter case, of course, you might want the reassurance of uninterrupted business operations by ensuring that your landlord has arranged suitable building insurance;

Contents insurance

  • many commercial properties are likely to house valuable contents, much of which is likely to be critical to business operations – whether those contents are plant, machinery, and equipment, stock and supplies, or work in progress;

Liability insurance

  • if you are the owner of the commercial premises, you owe a duty of care to any visitors, customers, neighbours, or members of the public;
  • if you have let the premises to a tenant or leaseholder, you owe the same duty of care to your tenants and the visitors to the business premises they have leased or rented from you;
  • commercial property owner’s liability indemnity insurance, therefore, is likely to assume a critical role in the insurance cover you arrange – and, given the potential value of liability claims against you – typically provides several million pounds of indemnity.


This brief review of the nature and extent of the typical commercial property insurance policy may help to illustrate the important role it may play in protecting the premises from which you are conducting your business – since the protection of the premises is likely to be critical to the continuity of your business operations.

For further reading on the subject, you might want to review our Complete guide to being a commercial property landlord.

Finally, if you have any questions, please do not hesitate to contact us here at Cover4LetProperty on 01702 606 301 – we will be delighted to help.

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