What is Commercial Property Insurance?

If you are a business owner and you are making use of a commercial building, considering your insurance requirements is an important step in ensuring that you’re protected against all eventualities. From vandalism to accidental damage from flooding and fires, there are a range of scenarios that you would want to be protected from if the worst was to happen.

When it comes to commercial buildings insurance, there are two main types you’ll find from most providers. These can be broken down into two forms, buildings insurance and contents insurance. Together, they can be used to protect your commercial premises, protecting your stock and equipment against a plethora of risks. 

Is it a legal requirement to have commercial property insurance? 

Whilst commercial property insurance isn’t required by law, most landlords, as well as mortgage providers, will insist that you have property insurance before they agree to let the property to you or before they agree to a loan. Depending on how you are planning on acquiring your commercial premises or your current arrangement in terms of rent/letting, you may be required to have insurance to cover your property as it won’t be provided by the party you’re renting from. 

Planning for everything:

During turmoiled times, you can never plan on what’s going to happen. Accidents happen all the time and you could be left unprotected if something happens to the building that your business depends on. Amongst other scenarios, theft is also something to be aware of which is hard to protect against if you aren’t insured for such eventualities. Insurance is there as a safety net to protect yourself and your business and investment if the worse was to happen.

How much is commercial property insurance going to cost? 

How much your premiums are going to cost is going to depend entirely on the type of property you’re having to insure, what the property does in terms of a business as well as its size. For example, a commercial property could be anything from a residential rental property to a warehouse. You’ll have to speak to a professional broker who can help to understand your specific requirements so that they can help find the specific insurance provider that’s going to best suit your needs. 

The location of the building is also going to play a big part in influencing the cost of your premiums, as areas that are more likely to flood for example will often incur higher premiums. It is imperative however when you are looking at your property insurance quotes that you consider all factors and not just the final figure you’re given, since different insurance providers are going to offer different levels of protection which you may prefer over others. The cheapest premiums are not always going to cover you adequately if your requirements are quite specific. 

This is where finding a professional insurance provider will come into play, as you are going to be dealt the best level of cover, protecting you as and when you need it. Whether you own a single commercial property or you have a wide portfolio that you are looking to protect,  Commercial property insurance brokers are a great way of finding the best solution for you as everyone’s situation is going to differ. Working with a broker is a great way of having someone find the best deals for you, ensuring you’re getting the cover you need without paying for premiums that are through the roof. 

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