Commercial Let Property Insurance
Tailored insurance for landlords of offices, retail units, warehouses and industrial premises — protecting your investment, your rental income and your legal responsibilities.
What Does Commercial Let Property Insurance Cover?
As a commercial landlord, your insurance needs differ from those of an owner-occupier. We focus on the risks specific to letting business premises to tenants.
Buildings Insurance
Cover for the structure of your commercial property — walls, roof, floors, foundations and landlord's fixtures — against fire, storm, flood, subsidence, impact and other insured perils. We arrange professional reinstatement cost assessments to ensure your sum insured is accurate and adequate.
Loss of Rent
If an insured event renders your property uninhabitable or unfit for the tenant's use, loss of rent cover replaces the rental income you would have received during the repair period — typically for up to 24 or 36 months, depending on the expected reinstatement timescale.
Property Owners' Liability
Protects you against claims from tenants, their employees, customers or members of the public who suffer injury or property damage as a result of a defect in the premises or your negligence as landlord. Indemnity limits of £2 million to £10 million are available.
Terrorism Cover
An essential addition for commercial properties, particularly those in urban centres or high-profile locations. Covers damage to the building and consequential loss of rent arising from an act of terrorism — available through Pool Re or the open market.
Legal Expenses
Covers the cost of pursuing or defending legal proceedings relating to your property — including tenant disputes, lease enforcement, planning matters and tax investigations. A valuable addition that avoids unexpected solicitor bills.
Vacant Property Cover
Specialist cover for periods between tenancies or during refurbishment. Maintains protection for the building during void periods, subject to reasonable security measures, regular inspections and maintenance requirements being met.
Tenant & Landlord Responsibilities
Understanding the division of insurance responsibilities between landlord and tenant is critical to avoiding gaps in cover. The lease terms set out each party's obligations.
Landlord's Responsibilities
The landlord is typically responsible for insuring the building structure, roof, foundations, common parts, landlord's fixtures and fittings, and property owners' liability. In most commercial leases, the landlord also arranges terrorism cover and engineering inspection for shared plant. The premium cost is usually recoverable from the tenant via the insurance rent or service charge provisions in the lease.
Tenant's Responsibilities
The tenant is normally responsible for insuring their own trade contents, stock, machinery, tenant's improvements and business interruption. They should also arrange their own employers' liability, public liability and any trade-specific cover. A well-drafted lease clearly delineates these obligations — we can review the insurance provisions and highlight any potential gaps.
Property Types We Insure
We arrange insurance for commercial landlords across all major property sectors.
Offices
From single serviced offices to multi-let office blocks, we cover the full range of office property — including modern purpose-built premises, converted period buildings and serviced office centres.
Retail Units & Shops
High street shops, shopping centres, retail parks and mixed-use premises with retail on the ground floor. We understand the particular liability exposures associated with public-facing commercial premises.
Warehouses & Industrial
Light industrial units, storage facilities, distribution centres and factory premises. Cover takes account of construction type, tenant trade and specific hazards such as racking, machinery and stock accumulation.
Frequently asked questions
What are the insurance responsibilities of the tenant versus the landlord?
The landlord is typically responsible for insuring the building structure, common parts and property owners' liability. The tenant is usually responsible for their own trade contents, stock, fixtures and fittings they have installed, and their own business interruption cover. The precise division depends on the lease terms — in a full repairing and insuring (FRI) lease, the landlord insures the building and recovers the cost from the tenant via the service charge or insurance rent. We review your lease to ensure both parties' obligations are properly addressed.
What happens if my commercial property becomes vacant?
Most standard commercial property policies impose restrictions once a property has been unoccupied for 30 to 45 days — typically narrowing the insured perils, increasing the excess and requiring additional security measures such as regular inspections, draining down water systems and boarding up ground-floor openings. We can arrange specialist vacant property cover that maintains broader protection while you find a new tenant or carry out refurbishment works.
Can I insure a portfolio of commercial properties on a single policy?
Yes, and it is often the most efficient approach. Portfolio policies consolidate all your commercial properties under one policy with a single renewal date, streamlined administration and the purchasing power that comes from placing a larger combined premium. Properties can usually be added or removed throughout the year as your portfolio changes.
How is the reinstatement value calculated for a commercial property?
The reinstatement value — also called the rebuilding cost — is the amount it would cost to rebuild the property from scratch, including demolition and site clearance, professional fees (architects, surveyors, planning), compliance with current building regulations and VAT where applicable. It is not the same as the market value or the purchase price. We strongly recommend a professional reinstatement cost assessment by a qualified surveyor, particularly for older, unusual or large buildings where estimates can be significantly inaccurate.
Get the right cover
Speak to one of our expert brokers for a free, no-obligation quote.