Business buildings insurance

Buildings insurance for your commercial property

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Whether you run your company from an office, a shop, or a showroom, here’s how business buildings insurance can give you a useful layer of cover

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What is business buildings insurance?

Business buildings insurance is cover you take out for the premises you use for your business activity. It works in a similar way to buildings insurance, but the cover is especially designed for businesses.

Do I need business buildings insurance?

Buildings insurance for commercial properties isn’t a legal requirement for business owners, but it can still be useful in case the unexpected happens. However if you’re insuring a work premises that you’ve taken out a mortgage on, your lender may insist that on business buildings insurance as part of the agreement.

Do I need business buildings insurance if I’m a tenant?

If you rent the property in which you run your business, it won’t be up to you to find buildings insurance – that should be your landlord’s responsibility as they own the property. However you might want to consider contents cover.

What does business buildings insurance cover?

The specific level of cover you’ll get will depend on the policy you take out and the provider you choose, but in general business buildings insurance should cover:

  • Theft: If your property is damaged as a result of a burglary
  • Fire: For fire damage to your property
  • Burst pipes: If your property is damaged as a result of escaped water from burst pipes
  • Riots: If some kind of social unrest leads to damage
  • Accidental damage: In the event of an accident – though insurers’ definitions of accidental damage can vary, as there can sometimes be an overlap with negligence, such as bad DIY work
  • Subsidence: If your building is damaged as a result of the land around the property gradually sinking
  • Business interruption: If you lose business income as a result of an insured event that damaged your property you’ll be able to claim for the income lost
  • Stock and cash on premises: This will cover the cost of any damage done to stock or cash you have on premises after an insured event
  • Legal cover: This can cover you for a variety of legal costs, such as public or employees’ liability, though the latter is legally required if you employ people on the premises

Will business buildings insurance cover me if I work at home?

If you run your business from home you’ll be able to find business buildings insurance that covers your property under circumstances in which a standard home insurance policy might not. For example, if work equipment such as a laptop or tablet gets damaged, or if a drop in broadband connection means you lose out on income, you might be able to find a policy to cover you.

How much does business buildings insurance cost?

The price you’ll pay for business buildings cover will depend on a number of factors, including:

  • Your business: A bigger business will naturally have more to cover, and possibly more at stake if cover isn’t in place – especially with regards to liability insurance. As a result buildings cover is likely to cost more for bigger companies
  • Your property: Properties with higher rebuild costs will also be more expensive to insure, while if your property is in a high flood or crime risk area this may also raise your premiums
  • Your locations: If you have more than one property to insure as part of your business you’ll want to ensure each of these places is adequately covered

Different providers might place a higher value on various types of cover, so it’s always worth comparing options for the cover you need so you get the best value for money.

Compare business buildings insurance quotes

If you’re looking for a business buildings insurance quote, comparing your options with MoneySuperMarket and our partner provider Simply Business is the easiest way to find a cheap quote. All you need to do is tell us about your business and the property you want to insure, and we’ll show you a list of quotes tailored to your needs.

You’ll be able to compare deals by the overall cost, the level of cover you get, and any extras included as part of the policy. Once you’ve found the one you want, just click through to the provider to finalise your purchase.

Remember that, as with all insurance products, the cheapest quote available isn’t always the best – it’s advisable to find a policy that covers you for everything you need at the best price available. This way you’ll have peace of mind that you’ll be able to claim if the worst should happen.

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