Commercial Property Owners Insurance

Property Owners Insurance

A property owners insurance policy provides more comprehensive cover than a single liability policy and can be tailored to the needs of the policyholder. Property owners and investors often face complex risks, particularly those investing in commercial, industrial, agricultural and overseas property.

Commercial property owners need to consider many factors when taking out an insurance policy. Commercial properties can vary significantly in terms of use, from manufacturing hubs to furnished office spaces, and property owners often need a comprehensive policy that is tailored to their individual needs.

Commercial Property Owners Insurance

Commercial Property Owners insurance (sometimes known as Commercial Landlord insurance), provides cover for a range of risks under one policy. Standard policies generally include property owners’ liability insurance, fire and theft insurance and loss of rent insurance.

Building Insurance usually covers a range of standard risks including flood, fire, storm damage, subsidence and theft. Cover can also be extended to include debris removal, builder’s risk insurance and glass insurance. Non-standard buildings (e.g. listed buildings or those with unconventional construction) may require additional protection, or a higher level of cover due to increased rebuilding time and costs.

Contents insurance will cover items inside the building including fixtures, fittings, furniture and computer equipment. The level of contents insurance needed will vary depending on use and tenancy. Those with commercial properties let out to other businesses may only require cover for fixtures and fittings that are part of the building and may require their tenants to take out contents insurance to cover their own equipment. However, there are some instances where commercial property owners may opt for a higher level of contents cover for their tenanted property, for example, those letting out furnished office spaces.

Property owners who run their own business from their commercial property, or use it for essential operations, may also opt for comprehensive contents cover to protect their own computers, documents and specialist equipment.

Property owners’ liability insurance offers protection from third party claims of injury or property damage caused by the property or contents owned by the policyholder. For example, if a third party (such as a delivery person) slips on your path due to an unsecured paving slab, you may be held liable.

Asset Protection & Loss of Revenue insurance is another valuable cover which can benefit both property owner and tenant. Property owners, investors and managers with commercial properties which are let out to other businesses may be faced with high-out-of-pocket repair costs and loss of income if the property suffers significant damage such as fire or severe water damage.

Asset protection is designed to cover ‘all risks’ for inhabited buildings including the building structure, all materials, fixtures and fittings. Loss of revenue insurance will cover the loss of rent if a commercial property is uninhabitable whist repairs are carried out, and the costs of alternative accommodation for tenants where necessary.

Revenue protection also insures against the rental and all other property generated revenues such as management charges, service charges and ground rents following damage to the rental.

Commercial Property Developers and Construction Companies

Commercial Property Developers and Construction Companies also need to consider the additional risks associated with construction, redevelopment and refurbishment.

Developers and construction companies will require public liability insurance and employers liability insurance to protect against claims of injury or property damage from third parties or employees.

Depending on the nature of the development, an ‘all risks’ construction insurance or works insurance policy may also be needed; find out more about construction insurance here.

Latent Defects Insurance (also known as a structural warranty) protects the property owner against the cost of rectifying structural defects of the owned building. For property developers this warranty provides protection from future claims for structural issues. It is important to note that a structural warranty must be purchased in advance of completion. Where a building is sold on completion, this warranty is passed on to the buyer and remains valid for the duration of the agreed warranty period.

Environmental liability insurance is also an important protection for those investing in industrial and agricultural and commercial manufacturing property, and can protect against claims of pollution and cover mandatory clean-up costs.

Tysers can provide property owners insurance for a range of clients including:

• Property Investors & Managers
• Housing Associations
• Developers & Construction Companies
• Managing Agents
• Real Estate Investment Trusts
• Institutional Property Funds
• Pension Fund Managers
• High-Net-Worth Private Individuals

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