Commercial Property Insurance
Commercial property insurance covers the cost of repairing or rebuilding your business premises, or replacing your stock or equipment.
It covers you against risks such as:
- burst pipes (escape of water)
- falling trees
- subsidence theft
There are two types of commercial property insurance:
- buildings insurance
- contents insurance
Buildings insurance covers the cost of repairing or rebuilding your business premises if damaged or destroyed. Buildings insurance is not required by law, but most mortgage providers will insist that you take out a policy before they give you a loan.
Even if you own your business premises outright you should still consider buildings insurance to cover you against the cost of repairs or rebuilding your property. If you rent your business premises, buildings insurance is your landlord’s responsibility – but you may consider taking out contents insurance to protect your stock and equipment. You should always insure your business premises against the cost of rebuilding the property, not against its sale price or current market value.
Most building insurance policies will not cover you for:
- general wear and tear – everyday things that happen to your property over time such as carpets wearing thin
- acts of war or terrorism – buildings insurance policies usually exclude damage caused by terrorism.
Contents insurance covers the cost of replacing your business’s stock or equipment if it is damaged or stolen. If you are taking out contents insurance you should insure stock against its cost price, not its sale price. If there are times when you have more stock on your premises than usual, for example in the run-up to Christmas, you should make sure your insurance covers this.
There are two types of contents insurance policy for business equipment:
- Replacement – policies that replace an item that has been stolen or damaged beyond repair with a new one
- indemnity polices – these policies take wear and tear into account, replacing your items at their current value. For example, if you bought an item in 2014 for £1,500 and it’s valued at £1,000 in 2016, your insurer will pay out the lower amount if you make a claim
Business interruption insurance covers you if you cannot do business as normal as a result of an event that causes damage to your premises or equipment. It is usually offered as an extra when you buy buildings or contents insurance.
Business interruption policies cover:
- Any shortfall in pre-tax profits resulting from the event
- any increased costs in running your business as a result of the event, such as extra accountants’ fees
At Milestone, we understand the need for Commercial Property Insurance solutions that are as unique as the buildings themselves. Our experienced team work with you directly, passing on a wealth of knowledge to provide savings that help protect both your stock and staff. Our Commercial Property Insurance provides flexible cover in an increasingly litigious society, safeguarding you against the unexpected for continuity and peace of mind.
Standard cover can include:
- Business interruption
- Employers’ liability insurance
- Goods in transit
- Public and product liability