Most of us have bought some form of house insurance?? at one time or another, but when it comes to i?nsuring a commercial property, the process is entirely different. For starters, commercial properties have so many more uses; a home is used for living in, but any kind of business or trade may be going on at a business premises. When an insurer looks at a building used for business, a more specialised approach is called for, to take into account the variety of uses a building could have commercially. For the customer this can be advantageous, as bearing in mind the many different uses, an insurer could take a focused approach, looking at only certain risks it knows and understands well. This additional knowledge it may have over competitors enables it to potentially provide a better policy at a lower premium. So far so good, but what about the property owner’s perspective? Having so many different products can be a bit bewildering, and it can be confusing knowing where to look. It’s not as if there are lots of comparison sites you can turn to for a commercial property insurance quote, so knowing where to look is the key to getting the best prices. However, getting the best price is only half the job, what about the cover? So what does your cash get you? The minimum cover for a commercial let property is usually: Buildings – damage or re-instatement Loss of Rent – usually 20% of the sum insured value Property Owner’s Liability – normally a minimum of £2,000,000 though occasionally higher. And most of them also offer some sort of legal and/or emergency help product too. While we’re on the subject, it’s worth having a quick look at these, as they can be quite different and not necessarily what you expect. For example, the term “legal cover” can be a bit mis-leading, as it can mean anything from a free legal advice telephone line, where you can obtain legal advice over the phone and nothing more, through to a full blown legal expenses policy which will pay solicitors fees for certain actions you may have to make in defence of your property rights. So “legal cover” on one policy probably isn’t the same as “legal cover” on another, the difference is usually clear when you read the policy summary. As for emergency help, the same thing applies. It could just be a 24 hour telephone service where they arrange for an emergency plumber or other contractor to contact you and carry out repairs at your own expense. Or the policy may cover you for a set amount, say up to £750, towards call out and labour charges when a contractor carries out emergency repairs for you. The telephone helpline variety is usually free, and while handy, doesn’t really save you anything other than a search through your local yellow pages. As with other things in life, you usually get what you pay for, so the second, contributory service just mentioned, will normally be a small, extra fee on top of any insurance premium. There may be other options available too: Employers’ liability Loss of keys & replacement locks Glass replacement Terrorism Circumstances will dictate whether these options are worth having. As an example, glass cover for modern office blocks. As they tend to have significantly more glass in them than older commercial buildings, this would be worth more in this case.Where and what type of property will decide which options are the best value, or worth having at all. In the case of a building being maintained directly by a landlord themselves, employer’s liability might not be worth taking. So where do I find these policies? Properties used for commercial purposes can take many different forms, and each insurer will have their own view on the risks of each business conducted within it. Weighing up all the different benefits of competing policies and what they do or do not cover can be time consuming and difficult if you are not familiar with all the policy wordings. Fortunately, there’s always the option of using a commercial insurance broker. They have the know how, and as some have their own products and schemes through various insurers, it needn’t cost you anymore than going direct either. And if it comes to a difficult claim, a good broker can be worth their weight in gold.
Every single business owner requires commercial insurance of some type or other. It’s surely classed as the most vital purchases for virtually any business. Commercial insurance safeguards the corporation and its stock holders against a vast variety of events for instance theft, damage to property as well as liability lawsuits. Any business without commercial insurance is asking for issues. Essentially the most frequently used varieties of commercial insurance are property, liability and worker’s compensation. Property insurance policies are there to deal with the cost of restoring damages to the physical assets of the business including buildings. It can also incorporate coverage for items like machinery (for random breakdowns of machines), debris removal (should your property be hit by an act of God that leaves an enormous mess to tidy up), builder’s risk (in case damage is induced when construction is taking place), glass (all windows etc), inland marine (for possessions in transit or other people’s possessions that may be stored on the land), business interruption (for regaining lost income and also paying expenses whilst the business is not able to continue), ordinance (should you have to tear down a building that is not compliant then rebuild it), tenant (covers damages to upgrades which were attributable to employees), crime (for unlawful activity, obviously) and fidelity bonds (losses due to theft by a bonded worker) insurances. Should you or your corporation cause damage to some third party, you need liability insurance to deal with the fees laid on you by the lawsuit. This commercial insurance includes errors and omissions (accidental faults which cause injury), malpractice (injuries attributable to a professional failing to abide by the professional standard of conduct), car (for all those automobiles utilized by the organization) and directors or officers (for legal cases aimed at representatives of the company) insurances. Should you have any personnel included in the regular running within your business, particularly if the organization has a high risk of injury to its workers, the it’s a wise course of action to take out worker’s compensation insurance. This type of commercial insurance covers the fees sustained by an employee getting hurt as a result of a work related incident. It might additionally safeguard you from a lawsuit by said employee since they will be receiving compensation with regard to their injuries. Every time a business owner is planning to set up a fresh business, the very first thing they will likely do after drawing up the business plan and scouting premises is look into commercial insurance. There’s really no telling how rapidly they’ll need it. Having said that, they also need to take into account that a new organization is known as a high risk for insurance companies and so they’ll receive a higher premium than a similar business which has been in business for years. This means that they should examine their policy every year and try to work it down as low as they can. Each and every good business person talks about making the maximum profit they can in the end and unnecessarily high commercial insurance premiums slice into earnings in a big way, even so, so do lawsuits.