When owning a commercial property, arranging the right commercial landlord insurance can help protect both the building and your business interests. While many property owners understand the basics, not everyone knows exactly what this type of cover includes. From fire damage to legal actions linked to tenants, commercial landlord insurance could offer vital financial protection.
Here, we explain what commercial landlord insurance is designed to cover and why paying attention to the level of cover is important.
What Is Commercial Landlord Insurance?
Commercial landlord insurance is a policy arranged to cover buildings rented out for business use. This could include:
- Shops
- Offices
- Warehouses
- Industrial units
- Cafés or restaurants
Unlike residential landlord policies, commercial property insurance focuses on the risks linked to business tenants. The cover typically applies to physical damage and insurance claims related to public liability or tenant disputes.
What Commercial Landlord Insurance Can Cover
A standard policy may include the following type of cover:
1. Buildings Insurance
This helps cover repair or rebuild costs if the property suffers damage from:
- Fires
- Flooding
- Storms
- Vandalism
- Subsidence
The amount of cover should reflect the cost of fully rebuilding the property, not just its market value.
2. Loss of Rent Cover
If the building becomes unusable due to insured damage, such as a fire, loss of rent insurance can cover the income lost while repairs take place. This can be particularly important for property owners relying on rental payments to protect their business finances.
3. Public Liability Insurance
If a visitor, contractor, or tenant is injured on the premises, the landlord could face legal actions. Public liability insurance helps cover:
- Legal defence costs
- Compensation claims
- Medical expenses
Without this, even a simple slip or trip incident could create major financial strain.
4. Property Owners’ Liability
Separate from public liability, this relates specifically to responsibilities as a property owner. For example, if part of the building falls and damages a vehicle or nearby property.
5. Legal Expenses and Tenant Disputes
Some policies also cover professional service fees and court costs linked to insurance claims. This could include:
- Eviction processes
- Contract disputes
- Recovery of unpaid rent
Having professional indemnity insurance cover for these scenarios can offer peace of mind to landlords handling multiple tenants or large premises.
What May Not Be Included as Standard
It is important to check policy terms carefully. Some covers may need to be added separately, such as:
- Employers’ liability insurance if staff are employed on-site
- Contents insurance for items belonging to the landlord, such as communal equipment
- Terrorism cover
We help property owners review and arrange tailored insurance offers to suit specific buildings and business needs.
Who Needs Commercial Landlord Insurance?
This type of cover is relevant for:
- Sole property owners
- Limited companies holding business premises
- Property investment firms
Even if a property is rented to a long-term tenant, responsibility for structural repairs and liability claims often stays with the landlord. Without the right cover, a serious event could create a wide range of unexpected costs.
Choosing the Right Level of Cover
We support landlords by reviewing:
- Rebuild values
- Rental income protection needs
- Liability risk levels
Arranging the correct amount of cover helps avoid financial shortfalls if a claim arises.