Commercial property insurance – a necessity

Article by Robert Marshall

Commercial property can be home to a number of different business types, each with their own specific requirements, which is why it is important to ensure that your commercial property insurance covers you against any and all eventualities. You may be running a shop, an office or a site, or even be renting your property out to another commercial venture; either way, you need to be protected against any unforeseen circumstances which could leave you out of pocket or even without a property from which to work from.

As a landlord of a commercial property, your main concern is the welfare of the building itself as it is this space which earns you money. It is those bricks and mortar which need to be covered in case the worst happens and structural or cosmetic damage is done to the property, leaving you with the bill and unable to make any money. Subsequently, your commercial property insurance needs to insure your actual property first and foremost.

If a flood, fire, burglary etc forces the tenants of your commercial property to temporarily cease trading; this could mean that they are unable to pay you any rent as a landlord. With the right commercial property insurance, you can ensure that any disruptions to business are financially covered, minimising any disruption to your life.

Your assets within the building will often be items and supplies which allow you to do your job effectively and efficiently, and could include large, expensive machinery which could be costly to repair or replace in the event of an accident or burglary. You must ensure that your commercial property insurance covers your items kept in your property against theft, vandalism and probably most importantly accidental damage.

Extra security features such as alarms could help reduce the risk of a burglary, and a careful, diligent nature could assist in preventing any accidental damage, but there isn’t a lot you can do to protect you property and its assets from a natural disaster or terrorist activity. As unlikely as it sounds, these are very real dangers which could leave your property either in serious need of repair, or needing a complete rebuild, so it is wise to make sure your commercial property insurance covers these.

Another potential risk to your livelihood is legal action being taken against you or your company. Whether there is a dispute between you and a client, or your property turns out to have been built on somebody else’s land, the costs involved with getting legal representation in court could be unnervingly high, and leave you clueless as to where the money will come from. Your commercial property insurance should include legal cover, just for your peace of mind.

Public liability insurance and employer liability insurance should be part of your commercial property insurance as standard. These protect you, the proprietor and employer, against any legal action taken against you as the result of any damage done to a client/employee or their property while in your commercial building. From slips, trips and falls, to contamination from chemicals, anything that could potentially leave you with a lawsuit on your hands needs to be covered, to ensure you are not left out of pocket, or without a business at all.

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