Your business
A bigger business will naturally have more to cover – and more at stake if cover isn’t in place. So the bigger your business, the more you’ll have to pay
Compare cheap quotes on commercial property insurance
Business buildings insurance, also known as commercial property insurance, helps keep the bricks and mortar of your business safe. From shops and restaurants to offices, warehouses, or factories – if your business has a physical premises, it’s worth getting cover.
Business buildings insurance works just like the buildings cover on your home insurance – it means that if there’s unexpected damage to the structure of any building your business owns, you won’t have to shell out for expensive repairs yourself.
Business buildings insurance isn’t a legal requirement – but if you own any commercial property, then yes, you should definitely consider taking out cover.
It doesn’t matter what kind of commercial property you own: there’s always the risk of damage to the building. For example, your warehouse could be hit by fire, or your shop could be flooded by a burst water pipe. This kind of damage won’t just put your firm out of business for weeks or months – it can be very expensive to repair. Even a cracked or broken window could cost you a fortune. But with business buildings insurance, your insurer picks up the tab – leaving you free to get back to work.
If you have a mortgage on your business premises, many lenders will insist that you’re fully insured before they’ll agree to a deal.
Business buildings insurance will keep your property protected against a range of different risks – but some things aren’t included. Here’s what a good policy should cover:
Natural disasters like flooding, storms, and subsidence
Any damage to your building from fire
Deliberate vandalism, including from arson, burglary, or rioting
Accidental damage – as long as it isn’t considered negligence
Damage caused by burst water pipes on your property
If you’ve lost income as a result of the damage you can claim it back
An empty building usually isn’t covered if it’s unoccupied for 30 days
Damage caused by negligence by you or your employees
Similarly, poor craftsmanship isn’t included – so only use trusted tradespeople
If you choose to do DIY repairs on your premises, your claim could be rejected
Many policies exclude damage from pests and other animals
Insurance also won’t cover general wear and tear to your building
Buildings insurance is the responsibility of the person that owns the property – so you don’t need it if you’re a tenant. It’s still a good idea to make sure your landlord has insurance in place, though. If you rent the property in which you run your business, you should still consider business contents insurance – it’s crucial to protect your tools, furniture, or machinery.
There’s no one answer – the cost of business buildings insurance is determined by a range of different factors. Here’s what goes into the price you’ll pay:
A bigger business will naturally have more to cover – and more at stake if cover isn’t in place. So the bigger your business, the more you’ll have to pay
Properties with higher rebuild costs are more expensive to insure. If your business is in a high flood or crime risk area, this might also raise your premiums
If you have more than one property – for instance, a chain of shops, or an office and a warehouse – you’ll want all of them to be fully covered
Comparing business insurance quotes with MoneySuperMarket and our preferred partner SimplyBusiness is the easiest way to find an affordable deal on cover. Here's how it works:
Let us know about your business and the buildings it uses, and we'll find deals tailored to your requirements
You'll be able to compare your offers by cost, level of protection and any extras that are available
Once you've found the right deal for you, simply click through to the provider to finalise your purchase
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.
No, you’re not legally required to get business buildings insurance. It’s still a good idea, though. Without cover, you’ll have to pay yourself for any damage to your business premises, and if your business has to stop operations for a while you won’t be able to get those profits back. Business buildings insurance protects your bottom line against these risks – and even if you never use it, it’s a small price to pay for peace of mind.
It’s up to the person who owns the property to sort out buildings insurance. If you’re an owner-occupier, you’re responsible for making sure you’re insured. If you rent your business premises, then cover should be arranged by your landlord. However, your landlord might ask you to pay the cost of cover in your rental contract.
Many mortgage lenders insist that anyone they lend to must have buildings insurance in place. This is their way of protecting their investment in your business. If you own your business premises outright, you’re not required to get business buildings insurance – but since you also want to protect your business, it’s something you should seriously consider.
You’re not required to take out commercial property insurance if you run your business from home – but it’s worth looking into. While your ordinary home insurance should cover the structure of your building, some policies don’t cover rooms if they’re being used as workshops or for office space. That means your home insurer might refuse to pay out, especially if the damage was a result of your business activities.
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