Who insures the building?
If you rent premises, the lease decides who insures the structure. Often the landlord insures it and recharges the premium, and you insure your contents, fit-out and stock. If the lease makes you responsible, you’ll need buildings cover too. Read the insurance and repair clauses, and check whether you’re responsible for glass and shopfronts.
Business interruption explained
Business interruption (BI) pays lost gross profit and increased costs of working after insured physical damage stops or slows your business. Two numbers matter: the sum insured (based on gross profit, not turnover) and the indemnity period, the maximum time the policy will pay while you recover. Choose a period long enough to rebuild, refit and win customers back, which can be well over 12 months. More in business interruption explained.
Avoid under-insurance
Commercial policies commonly include an average condition, so being under-insured can reduce every claim, not just total losses. Have buildings valued for reinstatement periodically, and review stock and equipment values when prices rise. Some insurers offer “day one” reinstatement or index-linking to help.
Last updated: 15 October 2026
