Do I need to inform my insurer if my commercial premises are let?

Yes, and you need to inform them of the exact nature of the business undertaken in the property, as this has a bearing on the risk rating, and therefore the premium charged.

What if my commercial building has a flat roof?

When you obtain a commercial property insurance quote from an insurer, you will need to provide full details of the construction of the property, including details of how much of the property has a flat roof. Over time, flat roofs are more prone to leaking than standard slate or tile roofs, and so there is more potential for water damage. Many insurers include a ‘flat roof warranty’ clause, which requires a minimum level of maintenance be carried out on any flat-roofed areas.

Do I need to inform my insurer if my commercial building is a leasehold or freehold?

If you own the freehold, then you will be responsible for insuring the building. If, however, you only own the leasehold, then the building is likely to already be insured by the freeholder, so you won’t need to take out buildings insurance yourself. If you are the leaseholder you should check the terms of your contract.

Do I need employers’ liability insurance?

If you employ somebody in relation to the property, such as to maintain it, you are required by law to take out employers' liability insurance .

What do I do if the building is part domestic and part commercial?

Many commercial properties comprise multiple uses, for example, shops with flats above them. Most insurers will be able to provide cover for such an eventuality, combining both uses.

Can I add other people to my commercial property insurance policy?

Interested parties can be noted on your commercial property insurance policy, but only those with an ‘insurable interest’ in the property, such as a mortgage provider.

How much does commercial building insurance cost?

The cost of your commercial building insurance will depend on a number of factors, including: the cost of rebuilding your property; the nature of the business carried out; the construction of the building; the location of the building.

Can I claim commercial building insurance as an expense?

If you are self-employed, you can claim the costs of commercial property insurance as an expense against tax.

How can I reduce my commercial property insurance premiums?

Insurers may provide discounts if you have taken extra precautions to prevent a claim, such as fitting a high level of fire protection. You may be able to secure additional discounts by committing to a more rigorous risk management regime, but these will always be at the discretion of the insurer.

What happens if the commercial property needs a refurbishment?

Who pays for refurbishments will depend on the terms of the lease. A full repairing lease would make the tenant responsible for the property's maintenance and upkeep. A list of building updates should be kept, and the insurer informed of any work you are carrying out, especially if the work means the property will be unoccupied.

Who is responsible for insuring tenant’s improvements?

Improvements made by the tenant should be reflected in the lease, which will also set out who is responsible for insuring them. In general, if there is a full repairing lease in place then the tenant is responsible for both the cost of the improvement and the insurance of it. For more guidance and advice about insurance, and being a commercial landlord, visit our landlord insurance hub .

Are there any excesses on the policy?

Yes, although the applicable excesses will vary from policy to policy. In some instances it is possible to increase your excess to obtain a premium discount.

Can I insure a mixture of commercial and residential properties?

Yes this is no problem, our experts will understand your risk and advise on suitable products for your needs.

Can you provide premium breakdown per property so I can recharge my tenants?

Yes, we can provide this service.

As a business is there an option to include my commercial property under my business insurance?

Yes, if your business owns the property and you operate from there. If you are solely a landlord, then you will require property owners' insurance. If you are the tenant, you would not have an insurable interest and would not usually be able to insure the building unless you have been made responsible to do so under conditions of the lease.

As a landlord, am I required to take out commercial property insurance?

There is no legal requirement to do so, but any companies providing finance for you may have this as a condition of the finance.

Commercial Property Owners insurance

Name: Commercial Property Insurance
Brand: Alan Boswell Group
Rating: 4.9 (1420 reviews)

Commercial Property Insurance

Essential for owners of shops, offices, surgeries, hotels, leisure complexes, or home-based businesses, providing cover for diverse commercial buildings.

Tailored insurance products

Competitively priced

Option to combine residential and commercial properties

As a commercial property owner, you will need an insurance policy to cover your commercial buildings. If you own shops, offices, a surgery, hotel, leisure complex or run a registered business from home you will need commercial property insurance.

The Alan Boswell Group Difference

Investment in commercial property is a serious business – protecting your investment is equally as important and requires an insurance broker who understands your needs and knows what issues you may face.

Whether you require cover for commercial, mixed-use, or unoccupied property, our property experts are on hand to discuss your insurance needs. With more than 40 years’ experience in the commercial property sector, our dedicated team are perfectly placed to help with your commercial property insurance needs.

We’ve provided a hub of commercial property content and guides to help make sense of some of the complex issues surrounding commercial property.

How our customers rate us

Polite, professional and extremely prompt. I would seriously recommend them.

Mr & Mrs Allenza - Property Owners Insurance

4.9/5 1420 reviews

Commercial property owners insurance in detail

Commercial property insurance cover can vary between insurers, but the standard cover usually includes the following sections.

Property insurance

A wide definition of buildings that can extend to include common areas, landscaping, solar panels, wind turbines, and domestic white goods. Numerous extensions included as standard and tailored to the property industries.

Business interruption

Cover for loss of rent following property damage, as well as for the cost of alternative accommodation for residential units within your portfolio. There is a variety of extensions to supplement core covers.

Engineering damage

This policy can provide cover to surrounding property if any machinery or plant causes damage. We can also offer specific policy enhancements, such as working or repair investigation costs, to ensure you're well insured.

Property owners' liability up to £10million

Protects your legal liabilities towards third parties e.g. slip, trip, or fall or other injury while on the property.

If your commercial premises becomes unoccupied

Unoccupied properties present a greater risk to insurers than those which are occupied by a business.

They are more likely to be targeted for break-ins, and are more susceptible to malicious damage, including arson.

As a result, many insurers are reluctant to cover vacant properties – other than for brief periods such as a change of tenant – and cover can be restricted and be subject to certain conditions being met.

For longer periods of unoccupancy, such as where the property may be undergoing renovations, property owners will need to arrange a dedicated unoccupied property insurance policy.

If you are a property owner and you have a change of tenant or processes undertaken within the property, you will need to inform your insurance provider. Failure to do this could invalidate any claim.

It is important to make your insurance provider aware if there will be any periods of unoccupancy to ensure the property is covered correctly whilst unoccupied. Again, failure to inform your insurance provider could invalidate your insurance.

Optional extras

Legal expenses including commercial property disputes

Protection in the event of a legal dispute with your tenant. This includes a dispute over maintenance of your property, repossessing your property, and recovering outstanding rent due to you.

Contents and fixtures and fittings

If you have provided contents to your tenant or have fitted the building yourself to suit their specific trade.

Subsidence

Fees and costs in relation to subsidence, ground heave, or landslip.

Terrorism insurance

Protection against the potential exposure of a terrorist attack.

Employers' liability

If you employ someone to carry out work at your property you will need protection in the event of injury.

What is commercial property insurance?

Commercial property insurance provides protection against a range of risks to safeguard a property owner’s investment.

Standard cover typically includes perils such as fire, storm, flood, escape of water, malicious damage, and subsidence. Insurers also offer extended cover for risks like accidental damage, terrorism, and legal expenses.

Commercial landlord insurance is intended for property owners who lease premises to third parties for commercial use, whether it’s a shop, restaurant, office, or industrial site.

Do I need commercial property insurance?

It’s not compulsory, but yes, you ought to have commercial property insurance to protect the investment you have made.

If you’re renting the property to a business, you are handing over the day-to-day responsibility of your building to a third party, which increases the risk of something outside of your control going wrong.