Commercial Buildings & Contents Insurance. Solid Protection.
Your premises and the equipment inside represent a major financial investment. Buildings and contents insurance protects that investment against fire, flood, theft and other damage.
Get in touchWhat is commercial buildings and contents insurance?
Commercial buildings and contents insurance covers the structure and fixtures of your business premises (buildings) and the equipment, stock, furniture and fittings inside them (contents). It protects against fire, flood, theft, subsidence, storm and other covered perils.
Buildings insurance is the insurer's responsibility if you own your premises. If you rent, the landlord insures the building and you insure the contents. Contents insurance covers your own equipment and stock regardless of who owns the building.
Cover is provided on a reinstatement basis, which means the insurer will pay the cost to repair or rebuild, not the market value. Getting the reinstatement value right is critical to avoid underinsurance.
What is covered
- Fire damage to building
- Flood damage
- Theft and malicious damage
- Storm and weather damage
- Contents and stock
What is not covered
- Subsidence and ground heave
Available but often carries higher excess or limited cover
Who needs buildings and contents insurance?
Business premises owners
Any business that owns its premises should have buildings insurance to protect against loss
Tenants with stock or equipment
Renters need contents insurance to cover their own stock, equipment and fit-out
Retail and hospitality
Businesses with significant stock, fit-out and equipment need adequate contents cover
Manufacturers and workshops
Premises with equipment, machinery and stock require substantial contents cover
How much does commercial buildings & contents insurance cost?
£400 – £2,000+ per year for small to medium commercial premises; varies significantly with property value, location and type of business
Reinstatement value of the building
high impactInsurance is based on the cost to rebuild, not the market value. Many businesses are significantly underinsured because they use the purchase price. A professional rebuild valuation helps avoid this.
Type of business and contents
high impactA restaurant with a commercial kitchen, walk-in fridge and specialist equipment costs more to insure than an empty office. The value and nature of contents drives premiums significantly.
Location and flood or subsidence risk
high impactProperties in flood zones, coastal areas or with a history of subsidence may be significantly more expensive to insure or require specialist placement.
Security measures in place
medium impactAlarms meeting insurer standards, sprinkler systems, security lighting and roller shutters all reduce premiums. Some insurers will not quote without minimum security requirements.
Business type and occupancy pattern
low impactPremises left unoccupied for extended periods attract higher premiums or special conditions. Restaurants and hospitality venues with late-night trading may also be rated differently.
WHY CECIL
Built differently.
Get your reinstatement value right
The biggest mistake is using purchase price instead of rebuild cost. We help you understand what reinstatement value is and why it matters — and how to avoid underinsurance.
Cover appropriate to your business
A restaurant with fitted kitchen, walk-in fridge and commercial equipment needs completely different cover to an office. Your policy reflects your actual contents and risk.
Specialist cover for your sector
Hospitality, manufacturing, retail and professional services all face different perils and have different cover needs. Specialist insurers understand these differences.
Ongoing support when claims happen
If something is damaged, your insurer should guide you through repairs and help minimise disruption. Specialist insurers have systems to support this.
Real claims: what commercial buildings & contents insurance covers
A fire in an adjoining unit spreads to a retail shop, destroying the interior and all stock
The buildings policy covered structural repair and the contents policy covered stock, fittings and equipment replacement
£185,000 buildings claim and £62,000 contents claim
A burst pipe floods the ground floor of a solicitors office, destroying workstations, files and flooring
The contents policy covered IT equipment and filing systems. The buildings policy covered structural drying and flooring reinstatement.
£28,000 total claim
A bakery suffers a break-in and theft of specialist baking equipment and till cash
The contents policy covered stolen equipment at replacement value and cash under the money section
£8,400 total claim
Common questions about commercial buildings & contents insurance
What is commercial buildings insurance?
Commercial buildings insurance covers the structure and permanent fixtures of your business premises against damage from fire, flood, theft, subsidence, storm and other insured perils. It covers the cost to repair or rebuild on a reinstatement basis.
What is the difference between buildings and contents insurance?
Buildings insurance covers the structure and permanent fixtures of your property. Contents insurance covers the equipment, stock, furniture and fittings inside. Landlords insure buildings; tenants insure contents. Business owners typically need both.
How much does commercial buildings and contents insurance cost?
Cost varies significantly based on property size, age, construction type, location, and contents value. A typical small commercial unit might cost £400–£2,000 per year, but can be significantly higher depending on risk factors.
What is reinstatement value and why does it matter?
Reinstatement value is the cost to completely rebuild your property — including demolition, professional fees and materials — at today's prices. It is almost always different from the market value. Using the wrong figure leads to underinsurance, which means your insurer may pay out only a proportion of your claim.
Can I insure buildings and contents separately?
Yes. Some businesses rent their premises and need only contents cover. Landlords may insure the building but leave contents to the tenant. It is common to combine both in a single policy for simplicity, but they can be held separately.
Does commercial buildings insurance cover flood damage?
Flood is a standard insured peril on most commercial buildings policies. However, properties in high-risk flood zones may require specialist placement or carry significantly higher excesses for flood claims.
What happens if my business premises is unoccupied for several months?
Most policies include an unoccupancy condition — typically 30 or 60 days. If your premises is vacant for longer than permitted, your cover may be restricted or void. Notify your insurer immediately if the premises becomes unoccupied.
Does contents insurance cover stock?
It depends on the policy. Many commercial contents policies cover stock up to a specified limit. If you hold significant stock, check the limit is adequate and consider whether seasonal fluctuations are accounted for.
Do I need contents insurance if I work from home?
Yes, if you have business equipment at home. Standard home contents policies almost certainly exclude business use. A separate commercial contents policy or business home-based extension is needed to cover business equipment, stock or client property at your home address.
Does buildings insurance cover tenant fit-out?
Generally no. As a tenant, you should insure improvements and fit-out you have paid for under your contents policy. The landlord's buildings policy covers the bare structure only.
Industries that need this cover
Commercial Buildings & Contents Insurance is commonly required across these sectors.
Interested in Commercial Buildings & Contents Insurance?
We will be in contact when Cecil launches.