Business insurance

What is commercial property insurance?

Commercial property insurance protects a business’s physical assets: buildings, plant and machinery, stock and contents. The core is fire insurance against fire and allied perils, often extended to floods and earthquakes. Around it sit related covers for lost profit while the business is shut, machinery breakdown and electronic equipment.

In short

  • Covers buildings, machinery, stock and contents.
  • The core is fire and allied perils, often with flood and earthquake.
  • Add-on covers: loss of profit, machinery breakdown, electronic equipment.
  • Set the sum insured on rebuild-and-replace value.

What does commercial property insurance cover?

Commercial property covers (general categories)
CoverWhat it pays for
Fire and allied perilsFire, lightning, explosion and similar damage
STFI and earthquakeStorm, flood, inundation and earthquake damage
Fire loss of profitProfit and fixed costs lost while the business is shut
Machinery breakdownSudden breakdown of machines
Electronic equipmentComputers, servers and electronics

How should the sum insured be set?

On what it would cost to rebuild and replace, not on book value. If the sum insured is too low, the average clause pays every claim in proportion, even a small one. Review it every year as costs, machinery and stock change.

Does it cover stock that changes through the year?

It can, if the policy is set up for it. Stock that peaks in a season needs a sum insured that keeps up. Ask how your policy handles changing stock values before the busy season, not after.

Frequently asked questions

What is commercial property insurance?

Insurance for a business's buildings, machinery, stock and contents against fire and other perils.

Does commercial property insurance cover floods?

Usually through STFI cover, which may sit in the standard perils or be a separate section. Check the schedule.

How do I set the sum insured for business property?

On rebuild-and-replace value, reviewed every year, to avoid the average clause cutting claims.

What happens when you talk to us

A 20-minute video call with a Growth Advisor. No obligation, and no quote pushed. It opens with a five-minute video from our founder on how the benefits stack works and why Ethika exists; the rest is your questions. You’ll leave with an honest read on your current cover and claims experience, and a straight answer on whether we can genuinely help, even if you never become a client.

Talk to us

20 minutes with a Growth Advisor. No obligation.

A note on this page. Everything here is general information, not insurance, legal, financial or tax advice, and nothing is an offer. No insurer or product is named or recommended. What any policy covers depends on its own wording and schedule. For advice about your situation, talk to us.