A landlord’s guide to Commercial Property Insurance

2nd December, 2018

Commercial properties come in a variety of sizes and shapes, from warehouses to office blocks. This can make finding the right insurance for your own commercial property a little bit tricky. Below, we have comprised a useful insurance guide for landlords of commercial properties.

What is Commercial Property Insurance?

Commercial Property Insurance or Commercial Landlord Insurance is cover for property owners who are renting out their property to third-parties for commercial use, such as a place of work or holding business stock.

The tenant of a commercial property is the business or organisation who has the rental agreement in place that legally allows them to inhabit your property.

How does Commercial Property Insurance differ from Residential Landlords Insurance?

Commercial properties have increased risk exposure in certain areas such as:

  • Type of building - The construction of commercial properties can be more complex, such as having different types of heating systems, more complex electrical systems, multi-purpose rooms and so forth. Insurers need to incorporate this into the policy.
  • Activity within the premises – It is not likely that domestic properties will hold specialist equipment or expensive business stock.
  • The use of the building - For an insurer providing this type of insurance policy, it is about understanding the type of building you have and what it will be used for and then assessing the risks and costs involved.


What are the risks associated with being a commercial landlord?

  • Building – Fires, explosions, smoke damage, flooding, subsidence, storm damage, escape of water, natural disasters and impacts, vandalism and criminal damage. If your building is unoccupied, this may increase exposure.
  • Contents – Fixtures and fittings protected against damage and theft.


Liabilities:

  • Public – As the owner of the premises, you owe a duty of care to ensure that members of the public, customers, or visitors to your commercial premises are protected should they suffer an injury or have their property damage as a result of any negligence on your part.
  • Employers’ – If you employ staff to take care of your property, you need insurance to cover them against injury or illness.
  • Property Owners – This insurance enables you to meet any costs awarded to a member of the public if they suffer an injury following an accident on, or linked to, your premises.


What can Commercial Property Insurance cover?

  • Public Liability
  • Employers’ Liability
  • Buildings
  • Landlords’ Contents
  • Loss of Rent and alternative accommodation
  • Accidental Damage
  • Malicious Damage
  • Legal cover 


Health and safety checks

  • Gas safety – Gas appliances regularly need to be checked every year by a licensed gas engineer. All gas connections like fittings, pipes, and flues are checked that they meet the Gas Safety Regulations 1998. Gas safety certificates should be available for your tenants upon request.
  • Fire safety – You must meet all fire regulations, have the appropriate smoke alarms and carbon monoxide alarms and fire exits must be made clear. 
  • Electrical safety – Commercial landlords must have an up-to-date electrical certificate for wiring of the property and this must be renewed every 5 years.  Commercial properties come in a variety of sizes and shapes, from warehouses to office blocks. This can make finding the right insurance for your own commercial property a little bit tricky. Below, we have comprised a useful insurance guide for landlords of commercial properties.
  • Asbestos management – Asbestos should be properly managed in harmony the government regulations.
  • Regular maintenance – Your premises should be maintained and safe for your tenants.
  • Fixtures and fittings – Any fixtures or fittings you install, you must make sure they are in good working order. 


Please click here to find out more information about our Landlords Insurance cover.

We hope you found the above information useful.

If you require further assistance or would like to speak with a member of our team regarding Commercial Landlords Insurance, please contact a member on 0115 973 4437 or insurance@routenchaplin.co.uk.