A business with one or more buildings would require business building insurance. One of the biggest assets of a company is its building, so it is only sensible to insure the premises in which a business functions. In the event of an unforeseen incident, having a building insurance would be a respite for any kind of business. This means while putting up with the loss of business, finding a temporary location, and incurring other additional costs, the cost of the damaged building will not be a burden.
A business may be required by law or just by advice to have different business insurance policies. You can get an exclusive business building insurance or go for a comprehensive business insurance that covers buildings, equipment, fitting and fixtures, content, public liability, stocks, revenue, and professional indemnity.
Generally, the business building insurance policy will cover the business premises against few risks like explosion, fire, and flooding and storm damage. The policy will pay for rebuilding the premises and cover surveyors and architect’s fees, damaged cables, debris removal, underground pipe repairs and debris removal. Some providers cover all risks under their “all risk” policy, which details the different risks they cover including any accidental damage.
It is recommended that business owners opt for the complete rebuilding cost (reinstatement value) over the market value option when taking out the business building insurance. In case the whole building is lost in an accident, this policy will pay you the entire cost to rebuild it. Under insuring must not be an option, as in the event of loss, you will get only that amount and not the actual loss value.
You can add theft, comprehensive subsidence, malicious and accidental damage caused to fixed glass, loss of receivable rent, and wear and tear of pipes and tanks as additional coverage elements to your business building insurance.
If you are running your business from your home, your home insurance will not be sufficient to cover your business. There are providers who will cover your home and your business under a special business policy.
People renting a building for business purposes need not get business building insurance, as that would be the responsibility of the property owner. However, if your business involves a shop front, then you as a tenant would need to purchase a separate business insurance policy.