What is commercial property insurance and why do you need it?

Commercial property refers to land, buildings and large residential rental properties that are used for business purposes in order to generate an income.

Why do you need Commercial Property Insurance?

As a commercial property owner, you need commercial property insurance to reduce your risk and ensure financial protection for your possessions, livelihood, customers and employees. Choosing the right commercial property insurance plan is easy when you choose Jersey Mutual.

Commercial properties are often expensive assets to own, but they should always be seen as more than just bricks and mortar investments.

It is of course important that the building itself is protected from damage following unforeseen events; but you should also ensure that your business contents and any loss of business income are safeguarded for the future.

Whether you are a landlord or a business owner, Jersey Mutual specialise in protecting your property. Their bespoke commercial insurance policy covers both your tangible and intangible assets, should the unexpected occur.

Accidents happen and often when we least expect them. Whether it is a fire, theft, storm damage, burst pipe, vandalism or even a power outage; they can have a catastrophic impact to the way in which we run our businesses.

Because we can’t predict when or if these things will ever happen to your commercial property, it is important to always have the right level of protection to cover the costs to repair and rebuild your premises if damaged or destroyed. But, whilst there’s a lot to consider when choosing the right commercial property insurance plan, it doesn’t need to be complicated!

Below we explain how commercial property insurance works.

Different types of Commercial Property Insurance

There are many different types of commercial insurance policies covering different risks and referred to under different names. It is really important that you have a good understanding of the level of commercial property insurance you require and read the policy documents thoroughly before committing to purchase.

  • Included in the policy: Commercial property insurance protects buildings and contents against damage, resulting from fire, theft or other physical destruction. It also covers any exterior fixtures associated with your business, such as a fence, gate or outdoor signage. Most policies (including Jersey Mutual), will cover loss of income and increase in expenses that result from any business interruption. Most policies also include employer liability that protects against your legal liability for bodily injury to your employees, should an accident on your premises occur due to business negligence.

How are Commercial Property Insurance premiums calculated?

The amount of coverage your commercial property needs and the cost of this will vary depending on the nature of your business and the value of its assets.

An insurance company will work out your premiums by assessing the level of risk involved in the daily operation of your business. They will look at the industry you are in, location of your business, number of employees and business worth in order to predict the cost of coverage. Your actual premium rates will be higher or lower according to these factors.

Your premium is then calculated using the current “rebuilding cost” of your property. You should never use market value to calculate your business value as it does not consider specialist or unusual construction materials or methods, labour costs, demolition & site clearance and professional fees. It is, therefore, highly recommended that you get a surveyor to do an insurance valuation of your property for you.

What might seem an expensive outlay to begin with may just save your hundreds of thousands of pounds should things ever go wrong. And, if you are a landlord letting out business or residential properties, can always include some or all of the cost of your commercial property insurance cover in with the price of the overall rent.

And remember, there is no “one size fits all” when it comes to commercial property insurance. A good company should be able to offer you a bespoke package relevant to your commercial business needs.

Please use the Jersey Mutual insurance calculator to calculate your insurance costs.

Jersey Mutual Commercial Insurance Policy

At Jersey Mutual, we are exclusively owned by our members, and since 1869 we have been working to stabilise premiums, increase cover and improve our service to you. Because we are not part of a large conglomerate, we have the flexibility to work with you in providing tailor made commercial property insurance that is just right for your business needs.

Our local knowledge and considerable financial strength enable us to provide key insurance services to help our members find the right cover for their company. This includes:

  • Your commercial property insurance policy being held directly with us – no brokers or third party involvement
  • Senior staff members handling your claim
  • No administration fees and no agent commissions
  • No phone queues, stalling tactics or delays
  • Real people who care

If you would like to learn more about our commercial property insurance services and how they can benefit you, please visit our website or speak to a member of our team.

We are the island’s only Insurance Society and are proud of our unrivalled record and reputation in Jersey.


Although commercial property insurance is not required by law, at Jersey Mutual we would strongly advise that you seek business protection in order to secure your future assets. It is also important to bear in mind that most mortgage providers will insist that you have commercial property insurance cover before providing you with a business loan. If you would like to know how we can assist, call one of our knowledgeable insurance specialists today, for free advice and a no obligation telephone consultation.

Tell us how can we protect you today…

This form collects your name and telephone number so that we can assist you with your enquiry. Please read our privacy policy to learn more on how we protect and manage your submitted data.

I consent to Jersey Mutual Insurance Society collecting my name and telephone number