Commercial Property Insurance

What is commercial property insurance, and why do you need it?

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Commercial property insurance offers protection for property owners who are letting out buildings or facilities to other parties for commercial use. It can also be used to cover businesses for a property that they own and operate out of. As with all buildings, those used for commercial reasons are still susceptible to risks and hazards which can lead to damages, injuries and disruption to business operations.

Commercial building insurance is a great way of protecting not just the money that you’ve invested in a commercial building but also your ability to make future earnings. Cover can include buildings, stock, equipment, loss of income, business interruption, commercial property owners liability and employers liability. The common risks that commercial property is designed to insure against include fire damage, natural disasters, theft, vandalism and liability coverage.

Commercial property damage insurance can also protect you against common damages such as subsidence and accidental damage to the property, although what your business premises insurance covers varies between policies, so check the wording.

When you start your search for the right commercial building insurance you may find that it can be referred to by many different names. While some of these policies may vary slightly in what is covered they are largely the same in their purpose of protecting your commercial property against common risks.

For example you may see commercial property referred to as the following:

• Business premises insurance
• Landlords commercial insurance
• Business building insurance
• Commercial building insurance

This list is not exhaustive, however it should provide you with a good general idea of what terms may be used interchangeably when you are hunting for the right commercial property insurance.

Here at Quotezone we are experts in Insurance comparison. We can help you find the best cover for your commercial properties, whether that be for office spaces, mixed use properties or simply your own building of operations.

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Did you know?

There were 2.14 million rateable non-domestic properties in England and Wales at 31 March 2026, from shops and offices to factories and warehouses. That was up slightly from 2.13 million a year earlier (HMRC non-domestic rating statistics on GOV.UK, published May 2026).

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Why should I compare insurance policies for my commercial property?

Getting the right property insurance for your business is often stressful, going through multiple insurance websites hunting for the best price can be time consuming and tedious. Through our online comparison tool you can get commercial property insurance quotes and compare policies quickly.

Here’s how you can go about getting quotes from specialist insurance providers that operate throughout the UK:

Enter your details into our simple form and our insurance providers will then contact you directly and may provide you with a quotation, allowing you to compare the offerings.

What you need for a commercial building insurance quote

Have the main facts about the building and your business ready before you start. Insurers may ask about:

• the rebuild cost of the building, ideally from a qualified surveyor
• how it is built, including the roof type and any timber or thatch
• when it was built and whether it is listed
• what each floor or unit is used for, and by whom
• security, such as alarms, locks and CCTV
• any claims or losses in recent years
• any history of flooding or subsidence
• periods when the building will be empty, or planned building work
• the sums you want for contents, stock and loss of rent or income

Give full, accurate answers. Before cover starts, a business must make a fair presentation of the risk (Insurance Act 2015, section 3). Leave out relevant information and the insurer may be able to void the policy, refuse claims or reduce what it pays on a claim (Insurance Act 2015, Schedule 1).

Get commercial building insurance quotes

What can commercial property insurance cover me for?

This type of insurance policy can cover the cost of repairing or rebuilding your business premises if damaged. If you own the commercial property your business operates in this may be worth considering. If you rent the premises for business purposes then the responsibility for business premises insurance usually lies with the landlord, although your lease decides.

If you own the commercial property that you will operate out of, consider the amount of time, energy and money that goes into getting a business off the ground, it’s easy to see why you’ll obviously want to protect it. For example, if you have spent the last couple of years getting your restaurant business a dedicated local following and steady supply of customers, only to have a fire destroy your premises, without insurance this could well be the end of your venture as a restaurant owner.

With the right level of commercial property cover however, you can rest more easily knowing that the damages are only a set back and your insurance will pay out for the reconstruction costs of your premises. Given the huge costs involved with the reconstruction, particularly of large buildings and facilities, being caught without a solid building insurance plan can be disastrous.

Commercial property insurance can also cover the cost of replacing damaged or stolen stock and equipment. Some commercial property policies will also include business interruption insurance, when damage to premises or equipment prevents the business operating as normal and will result in increased costs or decreased profits.

Most policies will also cover rental loss as a result of an insurable event. This means if you as a landlord receive regular rental payments from a third-party operating a business out of your property, you may be covered against the loss of income should an insurable event lead to the tenant no longer being in a position to pay. This usually occurs when damage or destruction to the property has left it no longer possible to rent out to a third party business.

What are the different types of commercial property?

There are various different types of commercial property that you can obtain an insurance policy for, these include properties such as:

• Cafés
• Distribution centres
• Factories
• Farm lands
• Fast food takeaway shops

Other common types of commercial properties which would require this type of insurance include; Bakery, Block of flats, Gallery, Garage, Hospital, Hotel, Industrial property, Land (Landowners), Medical centre, Nursing/Care home, Office, Public house, Restaurant, Salon, Shop, Shopping centre, Sports facility, Studio, Surgery or Warehouse.

No matter what type of commercial property you are looking to insure, Quotezone.co.uk can help. You may also require a mixed-use insurance policy if you are leasing out your building to different operators. For example, a situation where a florist operates on the first floor of your property, whilst a hair dresser or barber operates on the level above.

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What our experts say:

“I’d start with your lease, because it should say who has to insure the building. It’s worth insuring for the cost of rebuilding, not what the property would sell for. And it’s worth telling your insurer if the building will be empty or your tenant’s trade changes, as either can affect your cover.” – Lee Evans, Business & Leisure Insurance Expert at Quotezone.

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Commercial property insurance guide

On the whole, commercial property insurance could be described as insurance for landlords that own business or commercial properties and typically rent them out to others. Commercial property insurance can also be taken out by landlords who work directly from their own properties without leasing to any tenants. In most instances, a person who acts as the commercial property landlord in the UK is usually the party expected to manage the insurance.

Whilst commercial insurance may not be compulsory it could prove invaluable if something happened to your business premises. Fires, flooding and even accidental damage could be catastrophic for any business and having the right cover can be instrumental in off setting the financial damages. Damages to commercial properties are usually not cheap, and depending on the size of the property and nature of the damage, the cost of repairs or rebuilds can be anywhere from 10s of thousands to millions of pounds.

Having the right insurance means that any insured losses are taken care of, and repairs can be paid for and put underway quickly in order to get things back on track. Finding a suitable insurer needn’t be a struggle, with Quotezone, specialist cover is simple to find and you can compare quotes in a matter of minutes.

Who pays for commercial property insurance?

Sorting out an insurance policy is typically the responsibility of the landlord of the property. Although the insurance policy will typically be under the name of the property owner, many landlords pass on the cost of insurance to the businesses renting the property. This cost would not equate to the renter paying for the insurance directly however, as this cost is usually factored into the rent directly.

An important note to remember is that renters do not usually have to insure the commercial property itself, although a lease can require it. The landlord usually arranges the commercial buildings insurance, but your lease decides who is responsible.

If you have any queries about your insurance, it is important to talk with your landlord directly. This will allow for you to clearly determine what is covered by the active insurance policy and what additional add-ons may be required for your business to operate in the property.

What is landlords insurance?

In the most technical sense, landlord insurance is simply an insurance cover for a landlord that rents out their property to a tenant, regardless of whether or not the tenant is operating a business within the property. Typical landlord insurance will protect a property against damages, landlords liability, loss of rent cover as well as contents insurance. However, given that operating a business can come with its own risk profile, this means that a landlord commercial property insurance policy will likely be the most appropriate type of coverage in the eyes of your insurer. This is again down to insurers doing everything they can to cover the risk of a claim and as a result a more specialised form of landlords insurance is usually required, this is where commercial property comes in.

Is commercial property insurance the same as landlord insurance?

It may seem that landlord insurance is the same on the surface of things, however the two types of insurance may differ, particularly in the way a building is constructed and in terms of the type of tenant.

Commercial property insurance could include properties such as steel structures, barns, wooden premises and those with a flat roof. In terms inside the structure there may be a different type of heating system or complicated electrics that makes the whole premises much more niche when it comes to the type of insurance it may require.

Unusual structures, large premises and so on may require higher levels of cover which could be more complex than a typical landlord insurance policy could stretch to. These properties will usually require you to give more details to your insurer, some properties built with specialised materials may require specialist insurers. Such materials can include properties with timber, thatched roofs, and any other materials that would be considered non standard.

For tenants too, any commercial insurer will usually evaluate the kind of usage that the building is for and the type of activities that go on there. For example they will consider how many people may be present in the building at any one time, if any hazardous materials may be used there and the type of industrial equipment used etc. Evaluating the likely risk plays a big part in determining the price of the premiums for any insurance.

What are the specifics covered by commercial property insurance?

Ensuring that your level of coverage is sufficient from your insurance policy is likely to be a priority for many people. Your insurance could also include the following types of cover:

Property Owner’s Liability – This may be included within the premium or an added extra but could be a vital piece of cover in case a building owner is found liable for damage or injury due to neglect or a problem with the building such as loose flooring or an uneven step that someone subsequently falls upon. An owner rather than a tenant may be found responsible in this type of scenario as they may be required to maintain the building and ensure it is safe.

Rebuild Cost for Commercial Property – Getting an accurate re-build amount included in the premium could be crucial in the event of an entire premises being destroyed. This may be the downfall of many insurance quotes for any kind of buildings cover as being underinsured could mean not having enough money to re-build which might signal the end of a business.

Rent Losses – Unfortunately it may be that a building is rendered unusable if an incident occurred such as a fire or flooding. Despite this, rent losses may be recoverable if a building can’t be used due to an insurable event. Under this insurance you will be able to claim back the otherwise expected rental income whilst your commercial property is under repair.

Contents Cover – Depending on the nature of the business it may be the case that a landlord should consider contents insurance as part of their property insurance policy. This could be necessary if a company is already fitted out for a hairdressers or café as an example as part of the tenancy arrangement. In these circumstances the landlord may wish to include landlord’s contents cover.

Accidental or Malicious Damage – This could include any damage that is carried out accidentally or with intent. These can be separate options to include and to decide which if any could be best it may be worth evaluating the business use and how secure the premises are. In terms of malicious damage it may be worth covering for damage caused on purpose as it may mean having enough money to put things right if the tenants damage a property during their tenancy.

It is always important to check the policy documentation on your potential insurance plan to make sure you have the appropriate coverage included.

What doesn’t commercial buildings insurance usually cover?

Property policies don’t usually cover wear and tear, electrical or mechanical breakdown, or gradual deterioration. Poor work by contractors is another common exclusion, as the buildings section below explains.

Other gaps to check for:

• a building left empty for longer than the policy allows, when cover may drop to fire only
• terrorism, unless you’ve asked for it to be added
• your tenant’s own contents and fit-out, which tenants normally insure themselves
• cyber attacks and lost data, which usually need a separate cyber insurance policy

Read the exclusions section of any quote before you buy.

How do I insure an empty commercial property?

If your commercial property will be unoccupied for a set period of time, often longer than 30 days, you may need unoccupied property insurance. Check the unoccupancy clause in your policy.

When your property becomes vacant for whatever reason not involving an insurable event, your insurance company will typically allow for a short period of full cover. This is to give you time to make adjustments or find a new tenant to rent out the property. However if the property is left vacant for longer than the short time frame stipulated, you may need to move your insurance to an unoccupied commercial property policy. Insuring a vacant property can be more difficult due to the increased risk of theft, vandalism, and potential issues evicting squatters. Due to this vacant properties tend to be more expensive to insure, as the insurers will naturally wish to account for the increased probability of a claim being made.

How much does commercial property insurance cost?

Commercial property quotes are available in the UK from a couple of hundred pounds per year for smaller business premises, and cost considerably more for large complexes. The larger your building, naturally the more it will cost to insure so this is something to be aware of when hunting for commercial building insurance. The type of business which you run will also influence the exact price you can expect to pay on your premiums as some businesses are simply more risky to insure. For example if you are renting a property for use as an office space as opposed to a restaurant, your risk of fire is lower so your premiums will reflect this.

The cost of business insurance usually depends on factors such as the nature of your business and the level of cover you need. For business premises insurance, insurers may look at:

• the rebuild cost of the building, which sets the sum insured
• its age and construction, such as a flat roof, timber frame or thatch
• what happens inside, and whether that changes during the policy
• the location, including flood and crime risk in the area
• security, such as alarms, locks and shutters
• your claims history
• the excess you choose
• how much cover you add for contents, stock and loss of rent or income
• any periods when the building will stand empty

Insurance Premium Tax is added to the premium. The standard rate is 12%, and a higher 20% rate applies to a few products such as travel insurance (HMRC guidance on GOV.UK, checked November 2026).

Illustrative example (no real prices): two identical ground-floor units on the same parade each have a flat above. One is let to an accountant, the other to a takeaway with deep fat fryers. The rebuild cost is the same, but an insurer may see a higher fire risk in the takeaway.

That insurer might charge more for the takeaway unit, add conditions about cleaning the extraction system, or decline it. Another insurer may weigh the same risks differently, which is one reason to compare quotes.

The easiest way for a landlord to reduce their premiums is to compare as many quotes as possible to see which insurer can offer them the best value for money. Remember, in some cases cheapest may not be the best as there could be some crucial coverage elements left out.

Here are some practical things you can do to reduce your insurance premiums

• Pay annually – This can help you avoid the interest charged on monthly payments
• Security – Keeping your property well secure will reduce your premiums, installing advanced security systems and deadlocks means your property is less likely to be breached or vandalised
• Opt for extra excess – This can directly lead to lower premiums
• Always compare quotes for commercial premises insurance – This can help you avoid paying more than is needed

How do I find cheap commercial property insurance?

Start with an accurate rebuild valuation, then look at your security, your excess and how you answer the insurer’s questions.

Cutting the sum insured to save money can backfire. If a building is underinsured, the insurer may pay only a proportion of a claim, even a small one (Charity Commission guidance on GOV.UK).

A higher voluntary excess, the part of each claim you pay yourself, can reduce the premium. Make sure you could afford it (Charity Commission guidance on GOV.UK).

The Insurance Act 2015 requires a business to make a fair presentation of the risk. If a mistake means the insurer would have charged more, it can reduce a claim proportionately.

Then compare. Quotezone takes your details through one short form and passes them to UK business insurance providers, who may contact you with a quote.

What insurance are tenants usually responsible for when renting a commercial property?

Tenants will typically be responsible for insuring their own contents and so they’ll need to arrange this policy themselves. Some insurance policies may cover a tenants contents, such as new fittings, IT installations and other fixtures but this will need to be mediated between the landlord and tenants. If there are any new structural changes to the commercial property, such as new kitchens, flooring, heating systems and so on, these will need to be covered by the tenant if not covered on the landlords commercial property policy.

Finding the right commercial property insurance

Many business building owners may want the peace of mind that could come with knowing their building is adequately insured. An unfortunate fact of life is that the unexpected can just happen, and the only thing we can do is to be as prepared as possible for any eventuality. Finding the right policy that matches all the coverage requirements of your particular building or business can be the first step for many to full peace of mind.

Finding the right commercial property insurance with our comparison tool can help you save time and money, it’s also pretty convenient. By using a comparison tool, a business owner has the flexibility to search for cover in their own time and at their own pace in order to secure the best policy.

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Commercial buildings insurance

Commercial buildings insurance pays to repair or rebuild the structure of a business property after insured damage. Policies typically cover fire, storm, flood, subsidence, escape of water and theft, but not usually wear and tear or poor work by contractors (ABI).

Malicious damage may be included or sold as an extra. Check how your policy defines “buildings” to see whether fixed fittings, outbuildings and boundary walls are covered.

Rebuilding cost, not sale price, is the right basis for insuring business premises. Charity Commission guidance for trustees on GOV.UK lists demolition, site clearance, professional fees and meeting planning and building regulations as part of that figure.

Getting this wrong is expensive. The same guidance gives an example: a property insured for £10m but worth £15m would receive only £5m on a claim for damage to half of it.

A qualified building surveyor can give you a rebuild figure, and it’s worth having before you request a commercial building insurance quote. If you own the freehold, arranging buildings cover is normally your job.

Fire is a real risk for non-domestic buildings. Fire and rescue services in England attended 13,679 primary fires in buildings other than dwellings in the year ending March 2026. That was up 3.7% on the year before (MHCLG fire statistics on GOV.UK).

Flood terms for business premises are set by each insurer. Flood Re, which helps households in flood-risk areas find cover, doesn’t accept commercial or business properties. You can check the long-term flood risk for an area in England on GOV.UK.

Commercial premises and business property insurance

Commercial premises insurance can cover the building you trade from, everything inside it, or both. Business property insurance, often called contents cover, pays for stock and equipment. It can also include furniture and cash (Charity Commission guidance on GOV.UK).

Decide which you need before you ask for small business premises insurance. Owner-occupiers often want a combined buildings and contents policy.

Tenants often need contents cover only, because many landlords insure the structure, but your lease decides. Check it first: GOV.UK guidance for business tenants says any responsibility it doesn’t mention will usually be yours.

“New for old” is a common basis for contents cover, so value items at today’s replacement cost (Charity Commission guidance on GOV.UK). If you’ve paid for a fit-out, such as a shopfront or kitchen, it’s worth asking whether the policy covers it.

If you let premises to businesses, cover for commercial property owners usually combines buildings insurance with property owner’s liability and loss of rent, both explained above.

Commercial landlord insurance overlaps with this cover. If you let a mix of commercial and residential units, you can compare landlord cover for commercial and residential lets on Quotezone, for one property or a whole portfolio.

If you employ staff, employers’ liability insurance is usually a legal requirement. You need at least £5 million of cover, and you can be fined £2,500 for every day without proper cover (GOV.UK). You can compare employers’ liability cover on Quotezone.

Commercial landlord insurance

Commercial landlord insurance protects a building you let to business tenants, such as a shop, office or industrial unit. Some insurers sell it as commercial property owners insurance.

What a commercial landlord policy can include

Policies vary, but cover can include:

• buildings cover for the structure and your fixtures, usually insured for the full rebuilding cost rather than the market value
• property owners’ liability, which can pay claims if a visitor is hurt because of the building’s condition
• loss of rent while insured damage is put right
• landlord’s contents, such as carpets, blinds or kitchen equipment you supply, and shared areas like entrance halls
• terrorism cover, if you ask for it (see the questions below)

Keep the rebuild figure up to date. Some policies are index-linked, so the sum insured is adjusted each year for building costs. Even then, Charity Commission guidance for trustees recommends checking the figure with a surveyor every three to four years (GOV.UK).

What you pay depends on the rebuild cost, the building itself and your tenants’ trades, as the cost section above explains.

Do commercial landlords have to insure the building?

For a let business property, the lease normally settles it. Charity Commission guidance for charities that rent premises says to check the lease to see whether the landlord or the tenant must insure the building (GOV.UK).

Tenants usually insure their own contents and fit-out. Employers’ liability insurance is different: GOV.UK says it is compulsory as soon as you become an employer, such as when you take on a caretaker (GOV.UK).

How commercial lets differ from residential lets

Your tenant’s trade can affect what you pay, so a change of tenant may change your premium or your cover. It’s worth telling your insurer before a new business moves in.

Check who repairs what, too. GOV.UK says your lease should say who is responsible for repairs and maintenance. If you let homes rather than business premises, compare residential landlord insurance instead.

Recharging the premium to tenants

Landlords can pass the cost on. A lease can let the landlord recharge each tenant a share of the buildings insurance. A tenant’s share is usually added to the rent (Charity Commission guidance on GOV.UK).

If you’re a tenant paying that share, it’s worth asking the landlord for details of the policy. You’ll then know what is covered and what you still need to insure yourself, such as your own contents.

Mixed use property insurance

Mixed use property insurance covers a building with both business and residential parts, such as a shop with flats above. One policy can insure the whole building, so the insurer needs details of every part. It’s sometimes sold as mixed use landlord insurance.

Cover for a mixed use building can include:

• buildings cover for the whole structure, including the flats, for its full rebuilding cost
• property owners’ liability for tenants, residents and visitors
• loss of rent from both the commercial and the residential tenants
• alternative accommodation for residents if insured damage makes a flat unfit to live in, on some policies
• communal areas such as entrances, stairs and landings

The cost of mixed use cover often depends on the commercial unit. A florist below two flats is likely to be priced differently from a restaurant kitchen, so tell your insurer what each unit is used for.

Insurers may also ask how many flats there are, whether they are rented out or sold on long leases, and who looks after the shared parts. Give the rebuild cost for the whole building, including the flats.

Fire safety law also applies to the shared parts. In England and Wales, the Fire Safety Order covers the structure, external walls, common parts and flat entrance doors of a building with two or more homes (legislation.gov.uk).

In England and Wales, the responsible person must carry out a fire risk assessment (GOV.UK), and insurers may ask to see it.

Flood Re isn’t usually an option here. Its criteria list multi-use properties under commercial or private ownership among those not expected to qualify for buildings cover (Flood Re).

If the flats are sold on long leases, the landlord usually insures the building and recovers the cost through the service charge. GOV.UK’s leasehold guidance says leaseholders can ask for a summary of the policy (GOV.UK).

For a residential block with no business units, see block of flats insurance. If you own several buildings, multi-property landlord insurance can include mixed-use premises.

Commercial property cover by type of business

Cover needs change with the trade, because insurers ask different questions depending on what happens inside the building. Quotezone also has pages for office insurance, insurance for shops, pub insurance, and hotel and guesthouse cover.

Care homes and nursing homes

A care home is a workplace and the residents’ home at the same time, so insurers may want detail on both the building and the care provided. You may be asked about bed numbers, the type of care, fire precautions and the age of the building.

Our page on cover for residential and nursing homes explains the liability side, including cover for staff and residents.

Restaurants, cafes and bakeries

Cooking on the premises changes the building risk. With ovens, fryers and extraction in use, insurers may ask how often ducts are cleaned and what fire suppression you have.

Food businesses may also want cover for stock that spoils if a fridge or freezer fails, which isn’t always included. See restaurant cover, insurance for cafes and coffee shops or cover for bakers for more detail.

GP surgery and medical practice

A doctors’ surgery or medical practice usually needs cover for the building if the partners own it, plus medical equipment, IT and furniture.

NHS general practice clinical negligence claims fall under the Clinical Negligence Scheme for General Practice, run by NHS Resolution since April 2019 (GOV.UK). That is separate from property cover for the premises.

Workshop

Workshop insurance usually pairs cover for the unit with cover for tools, machinery and stock, and some policies add business interruption. It’s worth asking whether tools are covered off site too.

Outside Scotland and Northern Ireland, whoever controls a workshop is the “responsible person” for fire safety. They must carry out a fire risk assessment and review it regularly (GOV.UK).

Community centre and village hall

Charity-run village halls and community centres should insure their building and contents, because the committee has a duty to protect the charity’s assets (Charity Commission village halls guidance). Where the charity owns the hall, the Commission recommends insuring it for its full rebuild cost (Charity Commission guidance on GOV.UK).

If the hall is leased, check who insures it. Public liability cover may suit halls that run events or are used by the public. Employers’ liability is compulsory if the hall employs staff (Charity Commission guidance on GOV.UK).

Laundrette and dry cleaner

Cover for a laundrette or dry cleaner should take in the premises or contents, the machines, and customers’ clothes in your care. Check the policy includes goods belonging to customers, and whether machinery breakdown is covered.

Dry cleaners may need an environmental permit (GOV.UK), so it’s worth telling your insurer which solvents you use and how you store them.

Petrol station

Petrol stations may need specialist cover, because stored fuel adds fire, explosion and pollution risks. In Great Britain, petrol kept on dispensing premises needs a valid storage certificate under the Petroleum (Consolidation) Regulations 2014.

You may also need an environmental permit (GOV.UK). It helps to have details of the tanks, canopy and any shop or car wash ready, and to check whether pollution clean-up is covered.

Industrial unit

Industrial unit insurance covers a commercial unit on an estate or business park: the building if you own it, and machinery, stock and fit-out if you lease it.

On a multi-let estate, the landlord may insure the whole building and recharge each tenant a share through the lease (Charity Commission guidance on GOV.UK). Check your policy for what you must report, such as the unit standing empty or structural work starting.

Art gallery

Insurance for art galleries can cover the premises, or your fit-out if you lease, plus the artwork on display and in storage. Insurers may ask for valuations of higher-value pieces and set security conditions, such as an alarm.

If you show work on consignment, check whether the policy covers goods you hold for others. Art gallery insurance may not include artists’ works automatically.

Goods in transit insurance can cover goods against damage while they’re being moved, which helps if you send work to buyers or fairs. Public liability insurance may also be worth considering if the public visit your premises, as they do at openings and private views.

You might also need

If customers or other visitors come to your premises, public liability insurance may be worth considering alongside your property cover. You can compare public liability insurance on Quotezone.

Employers’ liability is compulsory for most businesses with staff, as covered above. To compare other types of commercial insurance, such as cover for your trade or professional work, see the Quotezone business insurance section.