Commercial property insurance protects the physical assets of your business premises, including the building structure, fixtures and fittings, and business contents. Standard cover includes damage.
Commercial property insurance protects the physical assets of your business premises, including the building structure, fixtures and fittings, and business contents. Standard cover includes damage from fire, flood, storm, escape of water, and malicious damage. Many policies also include business interruption cover, which compensates for lost income if your premises cannot be used following an insured event. Employers liability and public liability are usually arranged separately but can be combined into a commercial combined policy.
If you own your commercial premises, you need buildings insurance to cover the cost of rebuilding or repairing the structure. If you lease your premises, your landlord is typically responsible for buildings insurance, but you remain responsible for your business contents, stock, and any tenant improvements you have made. It is important to confirm with your landlord what their policy covers and what gaps you need to address with your own policy.
One of the most common errors in commercial property insurance is underinsurance — setting the sum insured below the true reinstatement cost. The reinstatement cost is not the market value of the property but the cost of rebuilding it from scratch, including demolition, professional fees, and compliance with current building regulations. Focus Insurance can help you establish an accurate reinstatement figure to ensure you are not left with a shortfall at claim time.
If you rent your premises, your landlord is responsible for insuring the building. However, you are responsible for insuring your own business contents, stock, equipment, and any improvements you have made to the premises. You may also need business interruption cover in case you cannot trade following damage to the building.
Business interruption insurance covers the loss of income and increased costs you incur if your business cannot operate normally following an insured event such as a fire or flood. It is designed to put your business back in the financial position it would have been in had the event not occurred. Cover typically runs for an indemnity period of 12 to 24 months.
The sum insured should reflect the full reinstatement cost of rebuilding the property from scratch, including demolition costs, professional fees, and compliance with current building regulations. This is not the same as the market value or purchase price. A professional reinstatement cost assessment is the most reliable method. Focus Insurance can advise on how to establish an accurate figure.
Cover is subject to underwriting, insurer terms and acceptance. Focus Insurance Services is authorised and regulated by the Financial Conduct Authority (FRN 717691).