You wouldn’t leave your most valuable possessions uninsured, or your savings unprotected. By insuring your commercial property, you can protect your investment from costly issues that can quickly sap your profits. Whether you rent your property to business clients or own the building in which you run your own business, an insurance policy can take the stress out of the common risks associated with maintaining a property.
A good policy should include building insurance as standard. Other features to consider are property owners’ liability cover, which can protect you against third-party injury and damage claims, and contents insurance if you have provided a lot of furniture or equipment yourself. You might also consider adding loss of rent, should you have to rehouse your commercial tenants while repair work takes place.
Finally, it’s advisable to take out a policy from an FCA regulated insurer or broker, to ensure they maintain accepted industry standards. To help you begin your search for a commercial property insurance policy, here’s a list of some of the most popular policies on the market.
Finding a Provider
It’s a good idea to work out the level of cover you need, as well as the additional features you are after before you begin your search. Make a note of any special protection you require, such as extended property owners’ liability or business interruption. Before you approach a provider, have your property details to hand to speed up the process.
- Buying directly – Most insurers advertise their commercial property insurance online, where you can view the features of the policy and complete a short questionnaire to receive a quick, online quote. If you’re looking for more specialist cover or have any specific queries, it can be more convenient to call the insurer directly and chat with one of their advisers.
- Going through an insurance broker – It can be tricky to evaluate just how much cover you need when renting out to commercial tenants. Insurance brokers can help you work out the risks associated with your building type and tenant type and can advise you on appropriate cover limits for your business.
- Comparison websites – If you’re yet to begin your research, a comparison website can be a helpful starting point. These sites present a number of providers, which you can filter by specific cover levels, price, or review ratings. Using these sites can be a helpful way to get an overview of the market and get an idea of the kind of cover available for your commercial property.
Commercial Property Insurance Providers
Aviva
A popular choice for property owners with multiple properties is Aviva. They can insure up to 20 commercial properties of all types, including industrial premises, shops and offices up to a sum of £4 million. Their package deal for businesses and landlords covers up to £5 million of public and products liability insurance, damage to landscaped gardens, loss of metered utility supplies of up to £10,000 per claim and alternative accommodation expenses of up to 20% of the building sum insured. Optional extras include legal costs and employers’ liability cover.
RSA
You can secure a comprehensive property owner’s policy with RSA, covering buildings insurance, loss of rent cover, property owners’ liability insurance and employers’ liability cover. They offer particularly competitive cover for companies with large mixed commercial portfolios or a range of office and retail properties. Their cover is available through an insurance broker.
AXA
More suitable for smaller businesses is the cover offered by AXA. You can build a flexible policy to create a package which works for your business, covering things such as buildings, fixtures and fittings, business interruption, cover for stock and cash on premises and legal expenses. Possible add-ons include cover for theft by employees of up to £5,000, cover for subsidence and landscaped gardens and more. As a policyholder with AXA, you will benefit from a 24-hour helpline to help with legal advice should anything happen.
Zurich
Zurich offers flexible products to suit a range of commercial properties, including offices and retail spaces. They can provide insurance for landlords with up to 10 properties, including those with a mix of commercial and residential properties. Their cover can include property owners’ insurance of up to £5 million per premises, public and product liability cover and contents insurance under one policy. You can also choose to add employers’ liability to cover staff working on the premises. Further cover can include business interruption and legal expenses, in the event you have to take tenants to court for non-payment.
Direct Line
Another option for smaller business is Direct Line. Their building insurance is suitable for both companies that own the property from which they run, and those who have made improvements or changes to a rented space to meet their trade needs. Their other policies include contents and stock cover to protect against damage and theft, and public liability cover.
Direct Line also guarantees to beat any prices quoted by competitors for new business insurance or renewal premiums, and even offer a 10% discount off their business insurance packages for existing Direct Line customers.
Allianz
One of the most comprehensive products available is Allianz’s commercial property insurance. They can insure up to 20 properties, as well as a mixture of both commercial and residential properties. Their policy can include property owners’ liability of up to £2 million, with the possibility to extend it to £10 million. They will also cover employers’ liability of up to £10 million, loss of rent up to £750,000 per year, and personal accident up to £20,000. You can also add commercial legal expenses and enjoy all benefits under one all-encompassing policy. Note that to take out a policy with Allianz, you will have to go through a broker.
Ageas
Another flexible provider is Ageas, who offer flexible cover to suit property owners of all types, both commercial and residential, whether it’s one property or a whole portfolio. In addition to property cover, they can insure you against public liability, directors’ and officers’ liability and employers’ liability. You can also add loss of rent to your policy as well as legal expenses. Their policies are also only available through a broker.
Chubb
Larger businesses might want to consider Chubb, who offer a standalone property damage & business interruption policy, as well as package deals featuring other forms of cover. They provide tailored protection suitable for a range of specialty industries or can arrange bespoke packages to suit your specific business needs. Features of your policy can include property damage, business interruption, goods in transit and accidental damage. Chubb prides itself on being one of the most financially robust insurance companies on the market, currently operating in over 54 countries worldwide.
QBE
QBE is an international insurance provider operating in over 27 countries. Their commercial property insurance is flexible and comprehensive, protecting landlords against unexpected damage as well as business interruption. Their cover is available to firms large and small for both single properties and those with a portfolio. Despite being such a large insurer, they offer a personal approach and seek to get to know you and your business to understand and assess your insurance needs.
Liberty Mutual
A policy with Liberty Mutual can cover protection for your premises as well as its contents. You can opt to include a range of products in your plan, including loss of income, key property and general liability coverage and other additional expenses. They are particularly suitable for small and midsize businesses, offering tailored policies for specific industries, such as commercial real estate, hotels and food processing. Their insurance is available through an independent agent or a broker.
Covea
Another provider to consider is Covea, who offer a commercial property owners’ product through insurance brokers, which includes buildings and property owners’ liability cover with accidental damage as standard. On top of these, you can add features such as contents insurance, loss of rent, employers’ liability and unauthorised use of gas and electricity or water up to £10,000. Policyholders can also benefit from a free 24-hour business legal helpline for assistance following an incident.
HDI
One of the insurers offering an unusually high level of cover is HDI, providing cover up to a staggering €280 million (around £225 million). They offer bespoke packages of cover catering to a broad range of industries, with both commercial and industrial businesses. Their cover includes property protection and business interruption insurance, as well as a variety of optional add-ons. You can insure a single property or a portfolio, though their policies tend to target medium to large risk-aware businesses.
Hiscox
Hiscox offer cover for business owners who also own the property from which they operate. Their policy covers all kinds of damage to the property, including flood or fire damage, and can include a broad range of property types, including shops, offices, showrooms and more. A key exclusion to note is contents cover, which would need a separate policy.
Alternatively, you can create an entire business insurance package with Hiscox, with commercial property insurance included. Other features you can add to your package include business interruption insurance, equipment breakdown insurance and portable equipment insurance. Hiscox are highly rated by their customers, achieving a rating of 4.7 out of 5 on Feefo, based on over 2,800 reviews.
AmTrust Europe
Another international provider is AmTrust Europe, offering a range of tailored business insurance. They can cater for landlords with both residential and commercial properties, covering property owners’ liability, property and contents, loss of rent, accidental damage, legal protection and employers’ liability. They can offer bespoke packages for a range of industries, including sectors traditionally considered ‘high risk’, owing to its size and reputation, currently operating in over 25 countries around the world.
Markel
Another provider that targets small and medium-sized businesses is Markel. Markel offers commercial property insurance cover for as little as £6 per month. You can tailor your policy to suit you, with options including office insurance, business interruption, accidental damage, business equipment insurance, loss of income and of course, buildings and contents insurance. They don’t have any concealed fees or cancellation charges and don’t charge interest on their monthly direct debits. You can get a quote on their website in just a few minutes.
ARO
ARO offers comprehensive commercial property insurance cover, with options such as material damage, property owners’ liability, glass cover, trace and access cover and other possible add-ons such as loss of rent or employers’ liability cover. They also offer a high level of protection, with the option to extend property owners’ liability to up to £5 million (£2 million as standard) and employers’ liability of up to £10 million. Should you run into legal action, they will also cover legal expenses. They will cover landlords who own all sorts of commercial properties, including industrial-purpose buildings, retail spaces and offices. ARO’s policies are only available through a broker.
ARAG Insurance
Policies taken out with ARAG Insurance can include a range of features, including material damage, property owners’ liability, trace and access and glass cover. Optional extras include employers’ liability cover and insurance against loss of rent following an insured circumstance. Their commercial property insurance is only available through a broker, but they offer cover limits of up to £5 million for property owners’ liability (£2 million as standard) and up to £10 million for employers’ liability. They can also cover legal expenses if you find yourself facing or taking legal action.
