What Is Commercial Building Insurance?

With over 5.7 million businesses in the UK, and with lockdown finally lifting, more and more organisations are beginning to blossom once more.

If you have recently started your own small business venture, you may need to consider investing in commercial building insurance. But what is commercial building insurance, and why exactly do you need it?

In this article we’ll tell you everything you need to consider when it comes to taking out the right insurance for your business premises.

What is commercial building insurance?

Similar to our car insurance or home insurance, building insurance simply protects the premises of your business, should the worst happen. This covers instances such as burst pipes, flooding, fire damage and theft. It’s worth mentioning that this is not the same as content insurance. Contents insurance covers the cost of everything inside your business, such as computers, products, and essential equipment.

Is commercial building insurance a legal requirement?

In a nutshell – no, It isn’t. However even if you own your premises outright, it’s still worthwhile investing in. This would prevent any unforeseen damage repairs from coming out of your own pocket, should disaster strike.

What if I don’t own my building?

If you’re renting your business premises, it is solely the responsibility of your landlord to take out building insurance. If you’re cautious about security however, you could choose to take out contents insurance to cover any costs against everything within your office.

How can I prevent potential damage to my commercial building?

If you’re unsure about committing to insurance, you could address the main causes of damage that it would cover yourself, to save money. There are tonnes of different safety features which you could implement in and around your premises to protect it against damages. For example, a big safety concern within buildings is fire doors. Usually insurance would cover you against fire damage, but you could instead install fire safety features such as these to minimise the spread, should one ever break out. You should also consider installing anti-theft programs such as CCTV and alarm systems. This will give you peace of mind knowing that should a break-in occur, police can properly investigate with the help of CCTV footage, which should prevent any further robberies.

Who should consider investing in commercial building insurance?

Any landlord can take out building insurance, however we especially advise doing so if your building is located in a town centre that might be subject to damage from pedestrians, public events, or protests. If your business is located near a riverbank or canal, you could be subject to flooding in the future which insurance would cover you for. It’s important to try to imagine every eventuality so that you’re covered for any unforeseen circumstances.