IF you own a commercial property, it is essential to obtain property insurance.
However, during times of economic uncertainty your business may be forced to manage an unoccupied property. If this is the case, then it is imperative to have the appropriate insurance policy in place.
The insurance risks associated with owning unoccupied commercial property can be extensive. An unoccupied building can pose serious liabilities as it is more susceptible to vandalism, undetected damage, fire and other losses. Purchasing unoccupied commercial property insurance is crucial to protect yourself against risks.
While this may be considered at the outset by the business owner as yet another expense, it is important to focus on the protection this cover will offer as opposed to concentrating solely on the cost.
In addition to purchasing the necessary insurance cover, you must ensure your business has a preventive strategy in place to maintain the property, reducing risk and liability. It is often assumed that theft is covered within your standard property insurance, however this can differ when the property in unoccupied. It is important to disclose all relevant information to your insurance provider, including the reason for the property’s vacancy and a schedule of any works set to be carried out on the property.
Make sure you fully understand the requirements and limitations of your policy, and that all conditions are met for a claim to be covered. The physical security of the property is vital. Along with purchasing your cover, it is important that you regularly inspect the building for damage or threats of damage. Install window locks, deadlock, alarm systems that are triggered by intruders, fires or floods, and switch off all utilities.
It is understandable that incidents can occur, but unoccupied property insurance can provide necessary protection.
Check with your insurance provider or broker to see if your existing insurance will cover a period of commercial inoccupancy. If not, make sure to choose an insurance policy that best matches the circumstances of your business at all times, for full protection.
:: Diane Johnston is head of SME at Autoline Insurance.
