{"id":1081,"date":"2019-04-05T06:06:13","date_gmt":"2019-04-05T06:06:13","guid":{"rendered":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/?p=1081"},"modified":"2023-07-27T23:52:02","modified_gmt":"2023-07-27T23:52:02","slug":"commercial-property-insurance-a-handy-guide-for-landlords","status":"publish","type":"post","link":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/commercial-property-insurance-a-handy-guide-for-landlords\/","title":{"rendered":"Commercial Property Insurance \u2013 a handy guide for landlords"},"content":{"rendered":"<p><a href=\"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-content\/uploads\/2019\/04\/commercial-property-insurance.jpg\"><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-1087\" src=\"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-content\/uploads\/2019\/04\/commercial-property-insurance.jpg\" alt=\"\" width=\"500\" height=\"320\" srcset=\"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-content\/uploads\/2019\/04\/commercial-property-insurance.jpg 500w, https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-content\/uploads\/2019\/04\/commercial-property-insurance-300x192.jpg 300w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/a><\/p>\n<p><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\"><b>Boxpod has teamed up with Abaco Insurance Brokers to produce a checklist to help ensure you have adequate cover for your commercial premises. Make sure your property investments are properly protected.<\/b><\/span><\/span><\/p>\n<p><strong><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Q What are the different types of insurance which commercial landlords need? <\/span><\/span><\/strong><\/p>\n<p><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">A<\/span><\/span><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\"> Usually landlords can buy a combined \u2018Property Owner\u2019s policy which includes most of the insurance needed:<\/span><\/span><\/span><\/p>\n<p><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Cover for damage to the buildings &#8211; plus any landlord\u2019s contents<\/span><\/span><\/span><\/p>\n<p><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Loss of rental income for 12, 24 or 36 months following damage as above<\/span><\/span><\/span><\/p>\n<p><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Property Owner\u2019s Liability insurance<\/span><\/span><\/span><\/p>\n<p><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Employer\u2019s Liability Insurance<\/span><\/span><\/span><\/p>\n<p><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Legal Expenses Insurance<\/span><\/span><\/span><\/p>\n<p><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Always check the lease to determine the extent of cover the landlord is obliged to maintain for the benefit of themselves and\/or the tenant.<\/span><\/span><\/span><\/p>\n<p><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Other recommended policies can include:<\/span><\/span><\/span><\/p>\n<ul>\n<li><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Directors &amp; Officers Liability now often called Management Liability for \u2018wrongful acts\u2019 of directors, officers or the property owning company itself eg (corporate) manslaughter.<\/span><\/span><\/span><\/li>\n<li><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Engineering insurance and inspection for items such as lifts, boilers and other plant: this may be the tenant\u2019s responsibility but worth checking.<\/span><\/span><\/span><\/li>\n<\/ul>\n<p><strong><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Q What are the top five dos and don&#8217;ts when it comes to choosing insurance for your commercial property?<\/span><\/span><\/strong><\/p>\n<p><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">A <\/span><\/span><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Do insure buildings at the right level: usually reinstatement as new NOT market value.<\/span><\/span><\/span><\/p>\n<p><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Do consider higher property owner\u2019s liability limits &#8211; \u00a35m is a bare minimum and often inadequate.<\/span><\/span><\/span><\/p>\n<p><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Don\u2019t think that gardeners or cleaners are necessarily self-employed \u2013 when it comes to injuries they may be treated as \u2018employees\u2019.<\/span><\/span><\/span><\/p>\n<p><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Don\u2019t forget to review the \u2018Statement of Fact\u2019 contained with every renewal \u2018bundle\u2019 \u2013 get it wrong and there\u2019s potentially no cover.<\/span><\/span><\/span><\/p>\n<p><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Do select a good policy wording and discuss your particular requirements with an experienced firm of insurance brokers.<\/span><\/span><\/span><\/p>\n<p><strong><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Q Can you highlight any pitfalls to avoid?<\/span><\/span><\/strong><\/p>\n<p><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">A <\/span><\/span><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Not complying with policy conditions eg flat roof inspection, security requirements, fire certification etc<\/span><\/span><\/span><\/p>\n<p><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Make sure the name of the policyholder is correct! Many owners forget to include a pension company owner or other family members for example.<\/span><\/span><\/span><\/p>\n<p><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Thinking it\u2019s OK to allow the tenant to insure the buildings etc. For various important reasons an owner should always insure the buildings themselves.<\/span><\/span><\/span><\/p>\n<p><strong><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Q What should landlords check for in the small print?<\/span><\/span><\/strong><\/p>\n<p><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">A<\/span><\/span><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\"> Conditions are the main concern and a good broker will highlight anything unusual or non-standard.<\/span><\/span><\/span><\/p>\n<p><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Many policies have market standard coverage and exclusions but nevertheless it is always helpful to read the policy and its schedule when first issued and note changes at every renewal.<\/span><\/span><\/span><\/p>\n<p><strong><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Q Why does it pay to shop around\/review your insurance annually?<\/span><\/span><\/strong><\/p>\n<p><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">A<\/span><\/span><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\"> It may pay to do this for smaller owners but because of the time it can take to get the cover right \u2013 this may not generally prove to be cost effective. Certainly if there is an unexplained increase in premium then it\u2019s time to look for alternative quotes.<\/span><\/span><\/span><\/p>\n<p><strong><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Q What advice should landlords pass on to their tenants about insurance cover?<\/span><\/span><\/strong><\/p>\n<p><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">A<\/span><\/span><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\"> Be clear about the extent of cover the landlord is effecting (it should match the lease). Suggest that tenants take advice as to the cover they need which will be separate and different. <\/span><\/span><\/span><\/p>\n<p><strong><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">Q In your experience are commercial landlords generally sufficiently insured?<\/span><\/span><\/strong><\/p>\n<p><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\">A<\/span><\/span><span style=\"color: #1f497d;\"><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\"> Not always, no. The buildings sum insured may be historic and even assessed on the wrong basis (eg market value as mentioned). An up to date assessment of the rebuilding value will help to avoid claims reductions due to under-insurance.<\/span><\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, serif;\"><span style=\"font-size: medium;\"><b>Thanks to Mark A Williams ACII Chartered Insurance Broker, Abaco Insurance Brokers. <\/b><\/span><\/span><\/p>\n<p><span style=\"font-size: small;\"><b>Abaco Insurance Brokers Ltd <\/b><\/span><span style=\"font-size: small;\">2 Lewis Court, Grove Park, Enderby, Leicester, LE19 1SD Tel: 0116 281 5960 Fax: 0116 289 1303 <\/span><span style=\"font-size: small;\"><b><a href=\"http:\/\/www.abacoinsurance.co.uk\/\">www.abacoinsurance.co.uk<\/a> <\/b><\/span><span style=\"font-size: small;\">Registered in England and Wales No: 07859268 Authorised and regulation by the Financial Conduct Authority<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Boxpod has teamed up with Abaco Insurance Brokers to produce a checklist to help ensure you have adequate cover for your commercial premises. Make sure your property investments [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,4,7],"tags":[],"_links":{"self":[{"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1081"}],"collection":[{"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=1081"}],"version-history":[{"count":5,"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1081\/revisions"}],"predecessor-version":[{"id":1088,"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1081\/revisions\/1088"}],"wp:attachment":[{"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=1081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=1081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=1081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}