No, commercial property insurance is not a legal requirement for owners or landlords, but it’s highly recommended. It’s essential to protect against large financial losses as a result of damages to a commercial building or any claims relating to it. For example, a roof tile falls off and hits a customer and they make an injury claim. 

It’s also important to maintain the value of your property so it’s suitable for renters running a business. As an owner, this will help you keep it as a source of income in the long run.

It’s almost always the responsibility of the owner/landlord to organise and pay for commercial property insurance. Whoever legally owns the property has what is an ‘insurable interest’. But, in some cases, the landlord may charge tenants extra for this insurance as part of building rent, but it is not usually up to the tenant to arrange this type of insurance. 

An exception to this could be if the landlord makes it the responsibility of the tenant to insure the property under the terms of the lease agreement.   

If you or your renters move out of your commercial property and it becomes unoccupied, it still needs to be protected. Most standard cover policies only insure a property if it’s occupied, as vacant properties can sometimes have higher risks of theft and break-ins. If you know your property will be empty for some time, you need to tell your broker or insurer, as you may need unoccupied property insurance —- this provides specialist cover for vacant commercial properties.