{"id":1102,"date":"2019-05-29T08:28:14","date_gmt":"2019-05-29T08:28:14","guid":{"rendered":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/?p=1102"},"modified":"2023-07-27T23:52:02","modified_gmt":"2023-07-27T23:52:02","slug":"commercial-property-insurance-a-handy-guide-for-tenants","status":"publish","type":"post","link":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/commercial-property-insurance-a-handy-guide-for-tenants\/","title":{"rendered":"Commercial Property Insurance \u2013 a handy guide for tenants"},"content":{"rendered":"

\"\"<\/a><\/b><\/span><\/span><\/p>\n

Boxpod has teamed up with Abaco Insurance Brokers to produce a checklist to help ensure tenants have adequate cover when renting commercial premises. Make sure you\u2019re properly protected.<\/b><\/span><\/span><\/p>\n

Q What are the different types of insurance which tenants need when renting commercial property? <\/span><\/span><\/strong><\/p>\n

A <\/i><\/span><\/span>If the landlord is insuring the buildings then tenants should cover only their own building improvements plus fixtures and fittings (this is in accordance with most leases). Additionally insure own property e.g. plant, machinery, office contents, stock including work in progress and finished goods, and any other contents whether permanent or temporary. There are many other policies that should be considered depending upon the trade or profession of the tenant and their activities. Phone a broker to see how best to cover not only assets but also financial loss, legal liability and business interruption risks.<\/span><\/span><\/span><\/p>\n

Q What are the top five dos and don’ts for tenants when it comes to choosing insurance in commercial premises?<\/span><\/span><\/strong><\/p>\n

A <\/span><\/span>1. Do know your lease and your property exposures & responsibilities <\/span><\/span><\/span><\/p>\n

2. Do identify the other risks to which your business is exposed<\/span><\/span><\/span><\/p>\n

3. Do find a good advisor \u2013 many brokers earn their income from the insurer<\/span><\/span><\/span><\/p>\n

4. Price matters of course \u2013 either you or broker should \u2018cover\u2019 the market <\/span><\/span><\/span><\/p>\n

5. Do look for premium instalment options \u2013 some insurers offer these for free<\/span><\/span><\/span><\/p>\n

1. Don\u2019t forget \u2018D&O\u2019 liability insurance \u2013 much more relevant these days<\/span><\/span><\/span><\/p>\n

2. Don\u2019t skip over any quote documentation; it\u2019s all relevant for cover to apply<\/span><\/span><\/span><\/p>\n

3. Don\u2019t forget to disclose past losses and claims to your various insurers<\/span><\/span><\/span><\/p>\n

4. Don\u2019t rely on \u2018package policies\u2019 if the cover and limits aren\u2019t right for you.<\/span><\/span><\/span><\/p>\n

5. Don\u2019t buy just on price \u2013 it\u2019s pointless \u2013 correct cover is the No.1 priority<\/span><\/span><\/span><\/p>\n

Q Can you highlight any pitfalls to avoid?<\/span><\/span><\/strong><\/p>\n

A Many tenants and some landlords still provide insurers with \u2018market value\u2019 for buildings or contents sums insured, but always insure assets for \u2018rebuilding\u2019 \/ \u2018reinstatement as new\u2019. Include an allowance for debris removal costs and professional fees in the sums insured and other costs may also need to be included. <\/span><\/span><\/span><\/p>\n

Tenant\u2019s \u2018work away\u2019 from the premises may not be covered unless specified in the policies.<\/span><\/span><\/span><\/p>\n

Avoid insurance companies based overseas. Check their financial rating & credentials.<\/span><\/span><\/span><\/p>\n

Q What should commercial tenants check for in the small print?<\/span><\/span><\/strong><\/p>\n

A Standard conditions relating to building security eg alarms and locks, etc \u2013 found in the policy document – these are often overlooked.<\/span><\/span><\/span><\/p>\n

Additional conditions usually found on the policy schedule are always worth double-checking.<\/span><\/span><\/span><\/p>\n

Q Why does it pay to shop around\/review your insurance annually?<\/span><\/span><\/strong><\/p>\n

A<\/span><\/span> Always review the details you have supplied to all insurers. At renewal time these will be sent to you for checking. If you don\u2019t review frequently then sums insured may become out of date or your business activities may have changed without the insurer\u2019s knowledge. <\/span><\/span><\/span><\/p>\n

Shop around if there is a price hike without a good reason<\/span><\/span><\/span><\/p>\n

Q What insurance cover should tenants check their landlord has taken out on the building they are renting?<\/span><\/span><\/strong><\/p>\n

A Very few tenants do check that the landlord has insured the premises according to the lease provisions. If the landlord has not adequately insured buildings for example then there may be insufficient funds to rebuild after a serious fire: that may well impact adversely on the tenant\u2019s ability to continue in business.<\/span><\/span><\/span><\/p>\n

Q In your experience are tenants in commercial units generally sufficiently insured?<\/span><\/span><\/strong><\/p>\n

A Not always no \u2013 it can be a mixture of genuine misunderstanding of what needs to be included within sums insured and time needed to concentrate on the detail. Tenants may not just under-insure \u2013 there are whole (important) policies that can remain un-insured for years \u2013 until the occurrence of a claim or a \u2018near-miss <\/span><\/span><\/span><\/p>\n

Thanks to Mark A Williams ACII Chartered Insurance Broker, Abaco Insurance Brokers. <\/b><\/span><\/span><\/p>\n

Abaco Insurance Brokers Ltd <\/b><\/span>2 Lewis Court, Grove Park, Enderby, Leicester, LE19 1SD Tel: 0116 281 5960 Fax: 0116 289 1303 <\/span>www.abacoinsurance.co.uk<\/a> <\/b><\/span>Registered in England and Wales No: 07859268 Authorised and regulation by the Financial Conduct Authority<\/span><\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Boxpod has teamed up with Abaco Insurance Brokers to produce a checklist to help ensure tenants have adequate cover when renting commercial premises. Make sure you\u2019re properly protected. […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,4],"tags":[],"_links":{"self":[{"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1102"}],"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=1102"}],"version-history":[{"count":2,"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1102\/revisions"}],"predecessor-version":[{"id":1105,"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1102\/revisions\/1105"}],"wp:attachment":[{"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=1102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=1102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=1102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}