Responsive Business Property Insurance: Everything You Should Know

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Let me guess – you have a business property that you need to get insured, and you don’t know where to start. Well, you’ve come to the right place. Insurance, in general, can be confusing and hard to follow, especially for those with little experience with finance. 

On top of that, business-related insurance is even more confusing. So, if you have a property that you’re using for business, regardless of whether you’re the landlord or leasing the property, you need to get insurance cover for it.

Many factors go into deciding whether you need insurance or not in the first place. After that, you need to determine exactly what you want to be covered, considering that the better coverage you get, the more expensive it’ll be. But, it doesn’t end there; you then need to decide on an insurance provider.

These are a lot of steps for an ordinary person who’s just looking to get their property protected, aren’t they? Well, luckily for you, we’ve got you covered. Throughout this article, you’ll learn everything there is to know about responsive business property insurance from A to Z. So, without further ado, let’s jump right into it.

What Is Business Property Insurance?

Business property insurance offers protection to your property against damages. What’s more, it covers all the costs it takes to repair damages caused by fires, floods, accidental damages, business interruption, the stock you have at the property, break-ins, and so forth.

You can even extend your insurance to cover legal liabilities or expenses, including employers liability insurance if that’s what you’re looking for. On top of that, business property insurance doesn’t just cover the property itself; you can extend it to cover any stock you have or the contents of the property.

On top of that, business property insurance adapts to your business property, not the other way around. Whether you have a shop, a factory, an office, or even if you work from home, you’ll be able to find an insurance package that is tailored for your needs.

As you see, this type of insurance covers a little more than regular property insurance does, so you definitely need to consider it over standard property insurance if you’re looking to keep your workspace protected.

Do I Need Business Property Insurance?

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If you’re the landlord of the property and you’re leasing it to another party, or if you’re running your own business on the property, you need business property insurance.

In the first case where you’re leasing the property, you need to keep yourself protected from potential claims from the party renting your property. On the other hand, if you’re running your own business, you need insurance to cover possible damages or legal expenses.

To keep it simple, whatever situation you’re in, you can’t go wrong with business property insurance, and let us tell you why.

Business property insurance can be tailored according to your needs, as mentioned before. For example, suppose you’re the owner of a massive franchise with multiple locations. In that case, you can get an insurance package that applies to all locations, or you can get a specific package to each location to make the most out of the insurance. The latter is more convenient if your different locations operate differently and you simply can’t find a one-fits-all plan.

If you’re still unsure whether you need business property insurance, ask yourself the following question: can I cover the cost it’d need to completely rebuild or repair the property in the worst-case scenario? If your answer is yes, then maybe you don’t necessarily need the insurance, but you should still take a look at what it may offer and see if it’s convenient.

On the other hand, if your answer is no, you absolutely need business property insurance. When it comes to business properties specifically, you need to be as protected as possible. It’s not just a property you own; it’s also a source of income that you shouldn’t risk losing.

Not to mention, business properties are a lot more prone to damage than residential ones, especially if you have workers or customers coming in and out. For that, it’s always better to be safe than sorry.

What Business Property Insurance Covers

Now that you know what business property insurance is and how important it is for any business property owner, you need to know what it covers exactly so you can decide whether you need it or not. So, let’s talk about that.

Commercial Building or Property Insurance

Getting insurance to cover the property itself only makes sense if you’re the landlord. If you’re just renting from someone else, you shouldn’t worry about building insurance because that’s for the landlord to handle.

Commercial building insurance covers damages to the building itself, like those caused by storms, fires, and floods. Of course, it goes without saying that if you’re the property’s landlord, you absolutely need building insurance.

However, if the building is also used domestically, then commercial insurance isn’t the way to go. In that case, you’d need combined landlord insurance, which we’ll cover later on.

Contents Insurance

Contents insurance is what you need whether you’re the landlord or just leasing the property. Whether you’re using the property as a shop, a restaurant, an office, or any commercial way that needs stock or equipment, this is a no brainer.

Contents insurance is what most people expect to get from business property insurance, and that’s because the value of any business lies in its stock. It includes anything not attached to the building itself, like furniture and equipment.

If you’re leasing your property, contents insurance only covers the contents provided by you (the landlord) and doesn’t include what the leasing party provides. However, if you’re leasing the property from someone else, your contents insurance will cover anything you (the leaser) bring into the property.

Additionally, contents insurance protects your items from both damage and theft.

Property Owners’ Liability Insurance

busy restaurant

If you’re the property landlord, you just can’t go without the property owner’s liability insurance. Any injury or damage to someone on your property makes you liable for that injury if it’s a result of a fault in the property. In case the victim decides to sue, you might be in for a hefty compensation payout.

You simply can’t predict accidents, and that’s exactly why you need a property owner’s liability insurance. It’s supposed to protect you from such claims by completely covering them.

Property owner’s liability insurance should cover injuries, any damage done to the victim’s property, like clothes tearing, and legal expenses to cover handling lawsuits.

Employers’ Liability Insurance

Employer’s liability insurance (also known as EL insurance) is a must if you have a decent number of employees working at your business property. Besides, it’s a legal requirement in the UK; you need at least 5 million pounds worth of insurance, and you can be fined 2,500 pounds for each day you pass without proper insurance.

As you can see, EL insurance is no joke, and it’s taken quite seriously in the UK, so make sure you get that covered as soon as you can.

EL insurance should cover all the costs if an employee (or an ex-employee) files a lawsuit for an injury they got on the business property, including the legal expenses and any possible compensation payouts.

The price of such insurance depends on how many employees you have as well as the type of the business itself.

Accidental Damage Insurance

It’s all in the name. Accidental damage insurance protects you from damages done to your property unintentionally. 

Unoccupied Property Insurance

empty office

As we’ve seen with the pandemic, anything can happen that’ll lead you to leave the property unoccupied for lengthy periods of time. So you need insurance to make sure the property stays in good shape while it’s not being used.

Not all insurance providers offer unoccupancy insurance, so make sure your provider of choice can cover unoccupancy before settling.

Unoccupancy insurance should cover any possible damages to the property while you’re away, including thefts, floods, fire, and so on.

Keep in mind that the costs of such insurance increase the longer the property remains unoccupied. Also, the costs heavily depend on the property value, location, security, and more factors that you need to discuss with your provider of choice.

Business Interruption Cover

In case your business gets interrupted for one reason or another, you might not be able to make it through that crisis, especially if that interruption happens to the business property acting as your main source of income.

Business interruption cover should replace all the income you would be getting if your business was operating normally. That also includes the costs of moving to another location if needed. The exact amount you receive is calculated from old financial records, so make sure you always have multiple copies of those that are easily accessible.

Rent Loss Cover

In case the repairing process of an insurance damaged property takes some time and will prevent you from collecting rent, rent loss insurance should cover that for you.

Some would consider rent loss a part of business interruption cover, so make sure you discuss that with your insurance provider to see what they have to offer.

Combined Landlord Insurance

This is the kind of insurance you’d need if your property was being used domestically as well as commercially, and it’s called combined landlord insurance.

Extra Covers

Some insurance covers are a little more situation-specific, and they don’t apply to everyone. Still, take a look at them and see if any is convenient for you.

Those additional covers may include terrorism cover that handles all the costs of recovering from a terrorism attack. There’s also legal cover, which covers all legal expenses, like hiring attorneys or paying legal fees.

If you’re worried about your property getting attacked by someone, you absolutely need malicious damage cover. That is supposed to protect you from intentional damage done by those leasing the property or theft by employees.

Costs of Business Property Insurance

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A lot of factors can affect the costs of the business property insurance you’re seeking, including the property type, what it’s used for, the property location, and how much you want the insurance to cover. Let’s take a deeper dive into this.

For example, a flood happening at a convenience store is a lot different from one happening at an electronics store, and that’s how your business type can greatly affect the cost of the insurance.

Another factor is the size of your business. If you have many employees or customers, then it’s a no-brainer that you’d need employers liability, product liability, public liability, and stock insurance.

At the end of the day, make sure that your insurance can cover the costs of having to completely rebuild the property in the worst-case scenario because that’s why you’re getting business property insurance in the first place.

Keep in mind that insurers might lower the costs of the business property insurance if you can prove that you’re taking all the precautions to prevent damages. Additionally, you can reduce insurance costs by keeping your property in good shape overall and keeping it secure.

On top of that, try to avoid leaving the property unoccupied if you don’t have unoccupancy insurance because that’ll help you get cheaper insurance packages.

Business Property Insurance Providers

Now that you know everything about business property insurance, the next step is to start looking for a provider. Well, we’re here to help you with that.

Most, if not all, insurance providers include everything you need to know on their websites, so a simple Google search should get you covered. On top of that, some insurance providers offer free quotes of how much you’re expected to pay for insurance, so you should definitely make use of those to get a rough estimate of what to expect.

Still, that might not be accurate enough for you, so you can always contact the insurance provider you choose on the phone for a more detailed cost breakdown.

On the other hand, some people tend to go for brokers to find good deals, even if it costs them an extra commission. Who knows? You might end up with a really good deal, after all. Brokers can also guide you to what you need, and if there are any extra covers you should consider. It’s a good place to start if you’re new to the world of insurance providers.

Before settling for any insurance provider out there, make sure you read their policies, don’t just skim over them. Insurance isn’t something you’d want to take risks with, so you must always know what you’re in for. Seriously, read the policies, no matter how boring or repetitive it seems.

Lastly, going for a comparison website is a step you never want to skip. Simply, comparison websites show you different providers and compare their prices and offers.

Final Words

Now that you’re at this point of the article, you can confidently say that you know everything there is to know about responsive business property insurance. We know it’s been a long journey to get here, but you’ve made it through! So, let’s quickly recap the main points we discussed.

Business property insurance includes any insurance coverage you get for a property that’s used for commercial purposes. It should cover damages done by fires, floss, accidents, and a lot more. It can even include covering legal expenses.

Whether you’re the landlord or just leasing the property from someone, you need some sort of insurance. For landlords, you need building insurance, property owners’ insurance, accidental damage insurance, and maybe even unoccupancy insurance.

On the flip side, if you’re just leasing the property, if you’re the landlord and running your own business, you need content insurance to make sure your stock is well-protected, employers’ liability insurance, business interruption cover, and even rent loss cover.

While business property insurance can be pretty expensive, it’s an investment that’s worth every pound. You can always lower the insurance prices by keeping the property secure and in good shape.

Finding insurance providers can be quite tricky, so we recommend starting with comparison websites. Compare My Insurance is one we’d strongly recommend if you’re unsure where to start.

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