Commercial Property Insurance
Being the landlord of a commercial property can be a lucrative business. Depending on the location of your property, you could earn thousands of pounds a month by renting it out to a local or national business. However, there are numerous risks associated with managing a commercial property and these need to be mitigated with the proper insurance. Landlord insurance for a commercial property can be complex as there are many elements to consider. From the building itself to the belongings within, you need to be sure you can recoup any financial costs associated with a claim.
What Kind of Insurance Do You Need?
When you start searching for quotes for your commercial landlord insurance, you must be aware of the breadth of cover you need. There are, of course, many kinds of commercial business and the risks associated with each one can be vast. For example, you may be the landlord of a restaurant, in which case the risk of fire is increased as opposed to something like a clothing store. Equally, the clothing store may be at more risk of vandalism and break-ins as the stock within is a desirable target for thieves.
Another element to consider is what would happen to your income should the building be unusable for any amount of time. If fire damage leaves the place in need of heavy refurbishment, the business cannot operate, and you will therefore not receive the rent you need to cover your own earnings as well as the cost of the refurb. We recommend looking into business interruption cover and loss of income insurance in these instances.
The main features to consider are:
Buildings Insurance
Insuring the bricks and mortar should be the first port of call and will often be the main standard feature of commercial landlord insurance. It protects the actual structure of the building, meaning that any damage that occurs from fire, flood, or storm, for example, can be paid for with your insurance. Oftentimes, this type of cover will extend to external structures as well, such as awnings, but you should check this with your broker before you sign on the dotted line.
Contents Cover
Although the business that operates from your property will have their own insurance to cover stock and till or computer systems, there will most likely be contents within that belong to you. Any white goods in the kitchen area of an office are likely owned by yourself, as well as fixtures and fittings, radiators, bathroom furniture, or lobby desks and seating. It is well worth covering these features as damage could cost you significantly.
Public Liability Insurance
As the landlord, you have a responsibility to ensure those working in your property are safe and free from any hazards that might result in sickness or injury. The business itself is likely to have their own level of liability cover, however this rarely extends to the communal areas like staircases. In the event of a visitor to your building being injured, whether there at your request or not, they can make a claim against you.
Employers Liability Insurance
If you have an employee carrying out work on your building, such as cleaners, landscapers, or decorators, you need to have employer’s liability insurance in place to be compliant with the law. Without this in place, you will face a hefty fine of up to £2500 per day. It is imperative for your employees to have a safe working environment; the cover will also pay out for any legal fees or compensation payments.
Optional Extras for Commercial Landlord Insurance
There are a few features you could add on to your policy to give you more wide-ranging cover, depending on the nature of the property you own. It is worth spending as much as you can on insurance as you do not want to find yourself under-insured should the worst happen.
Some of the optional features to think about include:
Loss of Income Cover
As we mentioned above, this can be a very important part of your insurance. If a fire is widespread and causes significant structural damage, it may be some time before the business within your building can start trading again. If they do not earn, they will struggle to pay your rent and you will lose out on two fronts. Loss of income/business interruption cover will cover those costs while you and your tenant get back on your feet.
Accidental Damage Cover
This type of cover takes care of the structure, as with buildings insurance, but also things like carpets, curtains and other upholstery. If a tenant spills food and leaves a stain on your carpet, you can claim back the cost of cleaning or repairing it. It could also protect from elements like rain damage or burst pipes.
Subsidence Cover
You will likely know well in advance whether there is any risk of subsidence with your property because it will come up in building checks. Regardless, it can be a very useful cover if the worst should happen and the foundations of your building are unsafe. Repairing this type of damage expensive, so being able to claim the costs is vital.
Why Choose Compare Landlord for Commercial Landlord Insurance?
We’re experts in our field, being able to put you in touch with partners that know everything there is to know about the landlord industry and the risks that come along with it. Not only does one easy form get you started, that’s the only part of the process! We’ll do the hard stuff for you, so you just have to wait for the quotes to come in. Being a landlord can be stressful enough without searching for endless quotes online. Get started with Compare Landlord today and get peace of mind at competitive prices.