Commercial Property Owners Insurance
Commercial Property Owners Insurance –Does your insurance provider know what tenants you have in your buildings? Have you updated them when changes occur? Moreover, why does this matter? Would you be surprised to hear that the business / trade and activities of your tenant will have a bearing on the cover you receive and the premium that you pay? But why is this?
Insurance companies look at various elements when assessing a risk for cover. The construction, age, condition of the building is highly relevant. The correct reinstatement values for Buildings, contents and rental income are driving factors when it comes to pricing a policy. However, one thing that is often overlooked by landlords and commercial property Owners is that whatever is happening inside the building results in risk factors too. Anything that increases the chance of a claim would be considered as a negative underwriting factor and when it comes to buildings insurance, Fire is obviously a big risk consideration.
Take for example a café; are they providing chips with the sandwiches & breakfasts? Do they use deep fat fryers? And if they do, what precautions have the tenants put into place to prevent or quickly stop a fire from happening? There are multiple options here – ANSUL suppression systems, Regularly & professionally cleaned extraction, ducting & ventilation equipment, Gas shutoff valves, Fire extinguishers, Fire blankets. You as the Commercial Property Owner may not be responsible for putting this into the building but knowing what is there and in use is crucial to your Insurer.
What about a Kitchen showrooms; Are they manufacturing the cabinets onsite? Are they using dust extraction system to prevent build up in the property? Are they welding the hardware? Do you know if they have a safety protocol for the heat works?
Insurance underwriters will want to know if your tenant is fire compliant. Do they have fire extinguishers to scale that are serviced regularly? Are they following all the required fire regulations for their trade & activities? Do they have flammable liquids in the correct storage cabinets?
As a Commercial Property Owner, do not put your property at risk. Make sure that your broker and insurer know the full story regarding your tenants business and activities.
Click HERE for the Fire Safety Guide (pdf) for Building Owners and Operators which all commercial Property Owners should be aware of.
For further information regarding Comprehensive Commercial Property Owners and Landlord Insurance and what we can cover, please click HERE.
Contact S.A. Faughnan (Brokers) Ltd. on 01 8245555 or at newbusiness@safaughnan.ie or visit us at www.safaughnan.ie
