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Business Insurance Guide for Commercial Rentals

By Darragh Timlin on June 9th, 2022

When it comes to commercial landlord insurance, the types of coverage your business needs will depend on various factors, such as the number of employees you have, the type of business you run, and the assets and services you offer. While you may not be legally required to have business insurance for rental property, it’s still wise to take out a policy to protect yourself in the event of damages, theft, or liability claims. This coverage can provide comprehensive protection for your commercial property, including buildings, contents, and loss of rent, as well as liability coverage for injuries or property damage suffered by third parties on your premises. With commercial landlord insurance, you can have peace of mind knowing that your investment is safeguarded against a range of potential risks and damages.

Read on to find out whether your business is legally required to have insurance, and what types of business insurance you need for a rental property. For a tailored assessment of your insurance needs and quick quote comparisons, get in touch with Brisco Business Insurance today.

Is Business Insurance a Legal Requirement?

There are two types of business insurance that may be a legal requirement for your business: employers’ liability insurance and professional indemnity insurance.

The only business insurance that is mandatory for all businesses in the UK with employees is employers’ liability insurance. This covers your business against claims that employees bring forward for illness or injury at work, and is a legal requirement for businesses that employ people, regardless of whether they are on a permanent or casual basis.

In addition to employers’ liability insurance, you are required to have commercial motor insurance if your company uses vehicles in their operations. This insurance will cover your business against claims for personal injury to someone else, or damage to property. Many businesses extend this cover to include theft or other types of damage.

Professional indemnity insurance is required for professions such as law, financial services, and healthcare. Professional indemnity insurance covers your business against claims from customers who have lost money as a result of a mistake you’ve made.

Other types of business insurance may be required in contracts with clients, so check your legal documents if you are unsure as to the cover you require.

Business Insurance for Rental Property: What Insurance Do I Need?

If you have a rental property, you may want to consider certain types of business insurance such as buildings insurance and contents insurance, public liability insurance, employers’ liability insurance, loss of rent insurance, legal expenses insurance and unoccupied property insurance.

There are many types of insurance available to protect your assets, employees and revenue as a landlord. You may also wish to protect yourself against claims made by tenants or other third parties that you come into contact with.

Buildings and Contents Insurance

Buildings insurance for landlords covers the usual risks of fire, flooding, burglary, and storm damage. Landlords can also protect against purposeful damage by tenants and accidental damage, both of which can cause unexpected and costly bills if not properly insured.

If you already have a buildings or contents insurance policy for your property, you will need to check with the provider as to whether you are still covered when you rent out the property. If you have a business premises that you conduct lettings services out of, then your need for buildings insurance will depend on whether you rent or buy business premises.

Public Liability Insurance

If you own a rental property, you may also want to consider public liability insurance, which insures you against mistakes made that cause injury or damage to a member of the public. This can include injury to a tenant, guest or neighbour cause by a defect in the property.

Employers’ Liability Insurance

If you employ people as part of your business then it is a legal requirement to have employers’ liability insurance. This type of insurance covers the cost of compensation and legal fees should an employee make a claim as a result of an injury or illness.

Loss of Rent Insurance

Loss of rent insurance covers landlords when their property is damaged and can’t be occupied. If for example, a fire breaks out in the building, your tenants may have to vacate the property. With loss of rent insurance you will be compensated while your property undergoes repairs.

Legal Expenses Insurance

In addition to rent loss of rent insurance, as a landlord you may also want to consider legal expenses insurance. Evicting a tenant can be a long and expensive process; you may want legal expenses insurance, especially if you are concerned about the financial costs associated with taking a tenant to court.

Unoccupied Property Insurance

When properties are vacant for an extended period of time, they are at a higher risk of vandalism, theft or other damage. Some policies don’t insurance for rental property, which means you are not covered if the property has sat empty for an extended period of time. It’s advisable to check your insurance policy and if your property is empty make sure you have the correct cover.

Brisco Property Insurance

We can help you find the ideal policy package for you and your tenants. Whether your priority is protecting against liabilities and claims made by tenants (or the customers of your tenants if the property you own is a commercial property), or ensuring that you’re covered in the event of a fire or vandalism, we can tailor the perfect insurance package for you.

We can help to ascertain the risks to your business, which will depend on factors such as whether you have any employees and whether you let property to residential or commercial tenants.

We Are Brisco

At Brisco Business Insurance, we provide our clients with a wide range of insurance covers to suit many different business types. Whether you want cover to insure against damages by tenants, protection from compensation claims made against you, or employers’ liability insurance when you hire staff, we have an insurance package for you.

Get insured in three simple steps: first, fill out our simple online form to provide us with some details about your business; second, compare quotes from the UK’s leading insurers; and third, activate your insurance and review all your documents online.

For a tailored insurance package, compare quotes online to compare the best insurance for your business.

Darragh Timlin

With over 25 years’ experience, Darragh is an expert in all things insurance. Starting his career in commercial property underwriting, Darragh has worked for a number of global insurers and is now Managing Director of Brisco Business, part of the wider Henry Seymour Group.

All articles by Darragh Timlin

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