Buildings Insurance
Building and contents insurance can be one of the most important elements of an industrial or commercial insurance policy as it ensures that the business can continue to run regardless of the accidents, damages and unforeseen circumstances that tend to crop up in such industries. Having a well-planned and all-inclusive insurance policy for your business property is vital, especially when a closure could lead to financial losses, redundancies and even bankruptcy.
Property Insurance
There are many different aspects of property insurance, with some insurance companies offering more cover than others. The standard policy will cover accidental damage caused by fire, theft or storm, but may exclude damage caused by flood, earthquake or hurricane. Because there are a growing number of developments within known flood-areas within the United Kingdom, may insurance companies will now hesitate before offering such cover - in fact, if the flood-line maps are consulted and the property is deemed to be in a high-risk area, flood insurance may not be offered at all. The same problem may occur if the building is located in a known earthquake zone, though within the United Kingdom this is not generally an issue.
Landlord Buildings Insurance
An extremely common variation of buildings insurance is landlord buildings insurance. This type of insurance is targeted at buildings owners that rent their properties out to residents or other companies, and can be purchased in a variety of forms with a variety of additional options.
Meeting Policy Conditions
Even the basic cover for fire, theft and storm damage is subject to several major conditions. The building must comply with fire safety regulations, for instance, and should be adequately fitted with fire escapes, smoke detectors, fire extinguishers (that are regularly maintained) and even sprinkler systems. In order to comply with security requirements the building may need to be fitted with locks, alarms, motion detectors, security lights and closed-circuit television. The building should also be in sound condition - with intact windows, doors, walls and a roof - in order to be given storm damage cover. When organizing a property insurance policy the insurer may send a consultant out to check that the property does meet their expectations.
Additional Cover
Additions to basic property insurance policies may include flood, subsidence and terrorism cover and should be considered carefully as a necessary expense if any of these factors are especially relevant. All three will be based upon the likelihood of such an incident occurring - for instance if the building is located on unstable ground or in an area prone to landslides, it may cost more to purchase subsidence cover but would be a necessary addition to the policy. Similarly if the building is situated in or near an area prone to acts of terrorism (such as an airport or train-station, a high-profile public building, or a city such as London), such cover may be recommended.
Policy Exclusions
In all property insurance policies there will be a list of named perils and exclusions that detail exactly what events or circumstances are covered by the policy and which are expressly excluded. Named perils on a basic policy may include fire, theft, explosion or lightning strike; exclusions generally include asbestos, nuclear contamination, and any form of pollution. Any events or circumstances that are not listed on the policy are known as 'open perils', that is possible causes of damage or destruction that the policy is obliged to cover as it does not expressly state otherwise.
Industry-Specific Cover
Aside from the standard property insurance, business owners should also consider investing in a selection of other policies. Contents insurance specific to offices, for instance, may be necessary for large businesses with reception, pay and accounting offices. Office contents insurance should cover all computers and portable equipment, as well as any furniture, artwork and personal belongings. Any accidental loss, damage, break-down or theft should be covered by such a policy.
Other policies worth considering include portable equipment cover (insurance for tools, laptops, mobile phones and visual and photographic equipment used by employees on- and off-site), loss of income insurance (cover in the event of a business being unable to function at full capacity as a result of an accident or closure), and commercial property insurance (sometimes known as 'landlord cover', these policies protect rent receivable, damage to property and any equipment and contents kept on site).