Business premises insurance is becoming more and more popular with businesses. It is in fact a civil liability cover for the occupation of a commercial space. Compared to other types of insurance, that intended to cover a business premises has several specificities. What do I need to know about business premises insurance? Let’s take a look in this article.
Insurance of a professional premises: is it an obligation?
Operation of the premises commercial forces some tenants or landlords to opt for insurance. The latter guarantees effective cover on the property both in civil liability and in guaranteeing rental risks. However, the choice of insurance for professional premises varies according to the status of the occupant.
Indeed, the tenants have the obligation to ensure the local occupation thanks to a insurance contract of tenant housing. The latter must include a minimum guarantee of rental risks. These include, in particular, that which covers water damage,fire and explosion.
However, the co-owners have the obligation to insure the professional premises against the risks of civil liability for which they will have to answer. This is valid whether they are occupants or not. This compulsory subscription to the insurance is provided for in article 9 paragraph one of the Alur law.
Moreover, the situation is completely different at the level of the owners of business premises not acting as condominium. Indeed, the subscription to an insurance is optional for them.
Why should you take out insurance for your business premises?
By taking out insurance for your business premises, you will limit the financial risks as much as possible. Similarly, you will find solutions to the recourse of neighbors and third parties during the occurrence of any disasters.
Here are the reasons why insurance for a business premises is necessary:
A cover in case of firefloods or natural disasters;
Protection during deterioration of the property and its contents;
Coverage against any recourse by neighbors and third parties;
protection against operating loss in the event of total or partial cessation of activity following a disaster, etc.
If you refrain from taking out insurance for your business premises, then you expose yourself to bearing all the costs generated by a claim. Similarly, you will not receive any subsidy in the event of partial or complete deterioration of the premises and its walls.
What are the guarantees to favor when taking out insurance for professional premises?
As in all other insurance, those guaranteeing the coverage of a professional premises have several guarantees such as the civil liability of the company.
• Operating civil liability: this covers the tenant or owner of the commercial premises against claims caused to a third party during the various activities. For example, a panel detaches from its support and injures a customer during the work. At this level, the insurance has the obligation to cover almost all the care to be provided to the victims.
• Civil liability professional : this type of liability covers the professional against an error or damage during the exercise of his function. For example, the insurance covers the damage caused to a computer supposed to be repaired by the professional.
Coverage of premises and property
The coverage of property premises varies according to the activity carried out by the professional. Indeed, the guarantees to be chosen must comply with the needs of the company. This is why the coverage of premises and property is made up of guarantees:
Basic of thebusiness premises insurance ;
Specific to multi-risk professional contracts, etc.
In addition, be aware that insurers have the obligation to adapt the guarantees of the contract to your situation. When it comes to a tenant, he must choose the civil operating and professional liability. In this way, he will be able to cover all damage caused to a third party. However, he can also opt for insurance multi-risk complete.
In the case of owner-operator, the insurers must add, in addition to the guarantees listed above, the coverage of the walls of which you are the owner.
In short, insurance for business premises is mandatory for tenants and co-owners. On the other hand, it remains optional for the owners. Depending on your needs, you must choose the guarantees to be favored during your subscription.