What is building insurance for commercial premises?
The purpose of commercial buildings insurance is to protect the building – or buildings – from which you run your business or own and sublet to other businesses. Not only can it cover you in the event of damage to the building, but also from any expensive remediation work. Buildings insurance and contents insurance for commercial properties are usually purchased together.
What does commercial buildings insurance cover?
If you own or are responsible for a commercial business premises, this type of insurance is vital to cover any unexpected damage to your building as well as its fixtures and fittings. If you rent the premises as a landlord, then it’s usually the responsibility of the landlord to insure the building for you.
Typically, the building will need to be insured up to the agreed rebuild cost – not its market value, which is likely to be more. Assuming that the right level of cover is in place, a policy will cover you for everything up to and including total loss.
Outside of the physical structure itself, buildings insurance can include cover for key fixtures and fittings – everything from a fitted commercial kitchen to a lift.
Where you own retail premises, buildings insurance can include cover for damage to the shop front – for example if a window is smashed by vandals. You can also cover security fittings such as roller grills or shutters.