Commercial Property Insurance

Building insurance is the primary coverage protecting the physical assets of a business, including buildings, equipment, inventory, and furniture, against various risks like fire, flood, theft, vandalism, natural disasters, and other accidental issues which impact the building. In most cases, building insurance only covers the cost of repairing damage incurred to the building, and it doesn’t cover losses associated with the contents damaged or lost due to a claim. Therefore, tenants need to take appropriate contents insurance for their possessions.

Contents insurance in commercial property refers to a specific aspect of coverage within commercial property insurance. As a commercial tenant, you should have content insurance to cover any damages on your movable property and assets or contents inside business premises, such as furniture, inventory, and machinery, because these are not included in the building insurance. The landlord will be responsible for insuring their own contents in the property.

Building structure coverage
The landlord typically maintains insurance for the physical structure of the building. This coverage usually includes the walls, roof, floors, and other structural elements. Then, the landlord will pass on the cost of building insurance to the commercial tenant, typically every year.

If you are leasing with Indurent, the insurance cost will be fixed when you take your lease (subject to annual increases of 3%), and we don’t charge a premium or commission for insuring your property. Contact us if you would like to learn more about the building insurance process when renting with Indurent.

The landlord may also insure the property they own within the building, such as common areas, equipment, and fixtures.

Tenant’s property

As a tenant, you’re usually responsible for insuring your own property within the leased space. This includes office equipment, inventory, furniture, and any improvements made to the unit.

Tenants might also need liability coverage to protect against claims of injury or damage to others while on the rented premises. Liability insurance provides financial protection in cases where you’re deemed responsible for someone else’s harm or damage to their property.

A business or property owner obtains a commercial property insurance policy from an insurer or insurance company. The policy is customised based on the specific needs and associated risks with business operations.

The policy outlines the coverage for the property and assets against damages such as fire, theft, vandalism, natural disasters, and other covered events. The insured, landlord or property owner pays regular premiums to maintain coverage. Then, they normally recover the costs from the tenants every year.

When damage or loss occurs to the insured property due to a covered event, the policyholder starts a claim by contacting the insurance company.

An insurance adjuster assesses the damage or loss to determine if it falls within the coverage outlined in the policy. They evaluate the extent of the damage and the claim’s validity.

Upon approval, the insurer compensates the policyholder for the covered losses or damages. This compensation helps repair or replace the damaged property, minimising the financial impact on the business.

If the damage causes a temporary halt in business operations, certain commercial property insurance policies include coverage for business interruption, providing compensation for lost income or additional expenses during the restoration period.

The policy is periodically renewed, and adjustments may be made based on changes in the business, property, or coverage needs. The effectiveness of commercial property insurance relies on the accuracy of the chosen coverage, adherence to policy terms, prompt claim reporting, and the insurer’s assessment and settlement processes. Each policy may have specific inclusions, exclusions, and limits, so businesses must understand their coverage thoroughly and tailor it to their specific requirements.

If you rent an industrial unit for your business, commercial property insurance can protect your building and keep your income safe. This type of insurance provides coverage for unexpected damage to the premises, and without it, the expenses for repairs could be financially burdensome.

For every insurance claim made, you’ll be responsible for covering an excess ranging from £0 to £1,000, depending on the nature of the claim. The specific excess amounts are outlined in your insurance policy and available upon request from your Property Manager. If you are leasing with Indurent, you can simply obtain a copy by calling us at 0800 122 3330 or filling out the customer enquiry form.