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Business building insurance

Don’t leave yourself exposed to lost profits in the event of a fire, flood or vandalism – take out a business building insurance policy

Whatever kind of business you own, taking an insurance policy out that protects you against all manner of potential disaster will ensure you can get back on your feet as quickly as possible if the worst should happen.

But what is business building insurance? What does it cover? And how much do you need?

Does my business need business building insurance?

Your premises, your bricks and mortar are the literal foundations of your business – so it’s imperative that you protect them in the event of an unforeseen disaster when a claim needs to be made.

While an event would no doubt be disastrous and could lead to the closure of your business premises either temporarily or permanently, a comprehensive policy will help your business recover quickly. Failure to do so could result in major profit losses and a significant financial hit.

You should take out business building insurance whether you own the building outright or are renting it off a landlord.

What does business building insurance cover?

Business building insurance covers your building, exterior fixtures such as signs and indoor fixtures and fittings against a catastrophic event. This could be anything from a fire, storm, or flood, to a burst water pipe or vandalism.

Your insurance provider will pay for damage or losses based on either the replacement cost of the item or its actual cash value:

  • Replacement cost – pays out the full cost of repairing, replacing or rebuilding damaged property or premises without deducting for depreciation
  • Actual cash value – a lower premium alternative that pays out the cost of replacing, repairing or rebuilding damaged property or premises, deducting for depreciation.

What won’t it cover?

A provider may request you adhere to a minimum security standard before taking out a policy. Any point of access should be secured against intruders with lockable devices. If there is evidence that damage or theft is due to lax security standards on your part, the insurer may not be obligated to pay out.

How much business building insurance will my business need?

Put simply, it should cover the total value of your business including all outdoor fixtures and fittings.

How can I choose a provider for business building insurance?

Many comparison sites are available to help you find a comprehensive and competitively priced business building insurance policy.

You should make sure your policy covers the type of property you own and the covers you against the risks that your specific business is exposed to.

What other insurance does my business need?

The only type of insurance your business needs by law is Employer’s Liability Insurance, which covers you in the case of an accident or illness with one of your employees, but there are other types of insurance it would be wise to investigate:

  • Motor Insurance – any business that operates a vehicle needs to be covered, either by individual policies or fleet cover
  • Business contents insurance – covers you for loss or damage to your business equipment or stock

Bryn Glover
Bryn Glover


As Editor of Startups, Bryn runs content strategy and our annual campaigns. A lover of small business, you can find him writing about exciting entrepreneurs and UK industry trends.