The Importance of Commercial Property Insurance | CWC Solicitors

Protecting Your Business: The Importance of Commercial Property Insurance

Friday November 3, 2023

As a business owner, you invest time, money, and passion into your company. From the stock you carry and the equipment you use to the building you occupy, your business assets are vital to your success and it’s essential to understand that your home insurance is not enough to protect your business interests. This is where commercial property insurance steps in, providing crucial coverage for your business assets and operations. Here are some reasons why commercial property insurance is essential.

Protecting Your Valuables

One of the significant advantages of commercial property insurance is the ability to cover your stock. Your stock is the heart of your business, and without it, your earnings may be in jeopardy. This insurance safeguards your stock against loss, theft, or damage, ensuring that setbacks with your inventory do not lead to a catastrophic financial loss. To get the right level of coverage, start by taking an inventory of your company’s stock. This comprehensive list will guide your insurer in providing you with the perfect policy that caters to your specific needs.

Your Home Insurance Isn’t Enough

For those who run a business from home, relying on your existing home insurance may seem like a convenient option, however, this can be a costly mistake. Home insurance does not typically cover equipment purchased for business use. To safeguard your livelihood, whether you run your company from a separate premises or home, a separate policy is a must. This distinction ensures that your business equipment and operations are protected adequately.

Offering Security For Your Employees

Your employees play a significant role in the success of your business and having commercial property insurance demonstrates to your team that you take the security and stability of your workplace seriously. They can work with confidence, knowing that their equipment and workspace are protected. In the unfortunate event of equipment theft or property damage, your insurance policy can step in to provide necessary support. This peace of mind is invaluable for your employees and can improve their job satisfaction and productivity.

Safeguarding Your Business For The Future

One of the most crucial reasons to invest in commercial property insurance is to keep your business operational. Unforeseen events such as fires, structural damage, theft, or other incidents can significantly impact your business operations. Without insurance, your company may face financial challenges that could potentially lead to closure. Insuring the physical assets and property from which you operate is not just a sensible decision; it is a critical step in ensuring the continued success of your business.

What Does Commercial Property Insurance Usually Cover?

Your commercial property insurance policy will outline your coverage, but generally, your insurance will cover fire damage, vandalism (including break-ins, burglary, rioting and arson), accidental damage (as long as it isn’t considered negligence) and natural disasters. Be sure to thoroughly read the policies available to you and ensure it meets your every need.

What Isn’t Covered by Commercial Property Insurance?

The insurance you purchase will detail the specifics of what isn’t included within the policy, however, most policies do not include damage caused by negligence from yourself or employees, poor craftsmanship, damage from pests or animals, general wear and tear, poor DIY or buildings that have been unoccupied for 30 days or more. 

Get in touch

At CWC Solicitors, we have extensive knowledge of commercial properties and the insurance needed to fit each business. If you’re unsure about what policy will benefit your business the most, don’t hesitate to reach out to our expert team. 

How important is Commercial Property Insurance to your business? CWC Solicitors explains…