Doc Summary
Owning commercial property creates different insurance exposures from occupying premises as a tenant.
The appropriate insurance depends on the building, occupancy and lease arrangements.
Building Insurance #
Commercial Property Insurance can cover certain physical loss or damage to the building caused by insured events.
This can include property such as:
- The building structure.
- Landlord fixtures.
- Certain improvements.
- Other insured property.
Loss of Rent #
If insured damage makes a property unusable, the landlord may lose rental income while repairs are completed.
Commercial property insurance can include Loss of Rent or Business Interruption cover for specified insured events.
Public Liability Insurance #
Property owners can face liability claims involving incidents such as:
- Slips and falls.
- Building defects causing injury.
- Falling objects.
- Damage to another person’s property.
Public Liability Insurance can address certain legal liabilities arising from ownership of the property.
What other insurance may be relevant? #
Depending on the property, cover can include:
- Machinery Breakdown Insurance.
- Glass.
- Environmental Liability Insurance.
- Flood.
- Landlord contents.
- Equipment.
- Legal Expenses Insurance.
The insurance program should also reflect responsibilities contained in the lease.
Frequently Asked Questions #
Commercial Property Owners #
Do I need to notify the insurer if a commercial property becomes vacant?
Yes. Notify the insurer promptly when a commercial property becomes vacant or materially unoccupied. Vacancy can change cover, excesses, security conditions and underwriting acceptance.
General Advice Warning: The information on this page is general in nature and does not take your personal circumstances into account. You should consider whether it is appropriate for you and seek professional advice before making any decisions. For tailored advice, please contact Webber Insurance Services.How should a commercial building be valued for insurance?
Commercial buildings should generally be insured for appropriate reinstatement or replacement costs rather than market value. Webber can assist with available rebuilding-cost tools, but complex, unusual or high-value properties may require a professional insurance valuation or quantity surveyor.
General Advice Warning: The information on this page is general in nature and does not take your personal circumstances into account. You should consider whether it is appropriate for you and seek professional advice before making any decisions. For tailored advice, please contact Webber Insurance Services.Are tenants’ contents covered by the property owner’s insurance?
Generally, no. A property owner’s building insurance does not usually cover a tenant’s business contents or stock. Tenants should arrange insurance for their own property and exposures.
General Advice Warning: The information on this page is general in nature and does not take your personal circumstances into account. You should consider whether it is appropriate for you and seek professional advice before making any decisions. For tailored advice, please contact Webber Insurance Services.Who insures tenant improvements?
Responsibility for tenant improvements may sit with the tenant or property owner, depending on ownership, the lease and contractual obligations. Review both insurance policies to avoid gaps or duplication.
General Advice Warning: The information on this page is general in nature and does not take your personal circumstances into account. You should consider whether it is appropriate for you and seek professional advice before making any decisions. For tailored advice, please contact Webber Insurance Services.What insurance should a commercial property owner consider?
A commercial property owner may need to consider building, loss of rent, liability, machinery breakdown, glass, catastrophe and flood cover. The appropriate sections depend on the building, tenants, leases and overall risk profile.
General Advice Warning: The information on this page is general in nature and does not take your personal circumstances into account. You should consider whether it is appropriate for you and seek professional advice before making any decisions. For tailored advice, please contact Webber Insurance Services.
