What is commercial landlord insurance?
Commercial landlord insurance provides protection for a landlord who rents out their commercial property to a business.
How does commercial building insurance differ from a residential insurance?
Commercial building insurance differs from a standard insurance policy as the buildings are constructed differently with different risks attached. For example shops often have large glass windows or shopfronts and they may consist of a steel structure or flat roof. Fixing and maintaining a commercial building can be a lot more complicated and more costly than a residential home.
The tenants of a commercial building also add risk. The risk of damage or risk of fire to a commercial building is higher than a residential building. For example, shops have lots of customers going in and out, some businesses use dangerous equipment and restaurants may use large ranges and deep fat fryers, all of which place the building at a higher risk.
What is commercial landlord insurance likely to cover?
A commercial landlord insurance policy provides cover against specific risks associated with a commercial property such as a shop, office or restaurant. It also covers the landlord against the risks attached to the tenants renting the property.
The insurance policy may include:
- Public liability cover – if a third party is injured or their property is damaged
- Building cover – building damage by fire, flood or vandalism
- Rent receivable – loss of rental income caused by damage to the property
- Landlord contents cover – fixture and fittings damage by fire, flood or vandalism
- Employers’ liability cover – in case one of your employees is injured at work
It is important to ensure the policy covers the specific risks associated with the individual commercial property.
Commercial landlord insurance is complicated by the risks it covers, but also by the way in which those risks are divided between the landlord and the business tenant.