Owners of commercial properties often have to secure a commercial mortgage. It’s generally the case that, as part of the deal, commercial property owners need specific commercial property insurance to make sure their assets are covered in the case of loss or damage.
Buying into commercial property is a significant outlay that may link you to that location for some time. If this is the case, it’s important to understand why you should invest in commercial property insurance to protect your interests.
The global commercial property market is expanding rapidly. Europe holds a 30% market share in this sector, with a predicted annual growth rate of 8.2% from 2024 to 2031.
If you’re wondering what is property insurance and how commercial property insurance is different, we take a look at commercial property insurance and what benefits it can deliver for commercial property owners. If you’re a landlord of a property, landlord insurance can also be useful.
Contents
- What is commercial property insurance?
- Why you should invest in commercial property insurance.
- Feel protected with property insurance from GasanMamo.
What is commercial property insurance?
Commercial property insurance provides cover for a business’s physical assets, such as buildings and their contents. This type of policy usually protects commercial property owners and landlords leasing to tenants who have a commercial organisation.
Commercial property insurance can protect against coverable loss or damage, such as storm events, fire, theft or malicious damage. Additionally, your policy may cover risks such as injury that occurs on your property or loss of rental income.
There are two types of commercial property insurance:
Buildings insurance
Buildings insurance covers the cost of rebuilding or repairing the premises if there is damage or issues due to storms, floods or fire. Technically, buildings insurance is not a legal requirement, but the majority of mortgage lenders will require you to have commercial buildings insurance.
Even if you don’t need a mortgage, covering your premises in case of future damage or weather impact makes sense. Buildings insurance should be measured against the cost of rebuilding the building, not its current market value.
Contents insurance
Contents insurance covers the loss or damage to your commercial property’s contents, business stock or equipment. It’s recommended that you insure your stock at the cost price rather than the sale price.
You should typically have the choice between two contents insurance policy types. Firstly, replacement insurance replaces items that have been stolen or damaged with new products.
Secondly, indemnity policies assess the current state of these contents, such as how much use they have had. You will then have items replaced at their current value rather than their original cost.
Why you should invest in commercial property insurance
Commercial property insurance does more than simply protect your business premises. Many organisations see it as a lifeline, a secure safeguard against serious business interruption that could impact revenue.
Here are five commercial property insurance benefits:
- Asset protection
If your business relies on certain types of equipment, such as manufacturing or electrical equipment, a damaged item can hold up your whole pipeline. Consult your policy to ensure the damage is covered so you can make a claim for repair or replacement to support business continuity.
- Minimise loss
Accidents, theft or adverse weather events may cause havoc to your business and your premises. They all have the potential to generate substantial financial strain if they hamper your normal operations.
A comprehensive commercial property insurance policy from a professional provider should cover the costs associated with these circumstances and help reimburse repair costs or replace damaged equipment to maintain business activity.
- Legal support
Legal action can cost businesses everything if they spiral into lengthy proceedings. If your business has to deal with a customer injury claim or another legal issue, then commercial insurance may provide support for legal costs.
Check with your policy provider to clarify your legal support entitlements and ensure you know what you’re covered for in preparation for any potential future events.
- Customisable policies
Working with an experienced insurance company that knows how to tailor policies to suit specific businesses can make all the difference. Enterprises may have a network of buildings with complex machinery which would need a policy that wouldn’t necessarily suit a business with one building and a straightforward set-up.
The ability to customise and personalise your commercial property insurance policy to your individual circumstances can support your business in growing at your desired pace and taking on fresh opportunities.
- Additional coverage
Your business may need insurance against the loss of metered water or cover for contents that stay out in the open. Whatever your requirements, search for a commercial property insurance provider that allows you to add additional benefits so that your entire property and contents can be protected from loss or damage.
Feel protected with property insurance from GasanMamo
Our friendly team of experts are on hand to answer any and all of your questions about property protection, such as; what is unoccupied property insurance, or how do I gain additional insurance benefits? Our multifaceted experience in the property insurance market enables us to support you in safeguarding your property and financial interests for the future.
Let us help you protect your property with a policy designed just for you. Contact GasanMamo today or get a quote online to enjoy peace of mind and premium service.
GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.
Photo: © kanchanachitkhamma via canva.com
