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What’s the Difference between Buildings Cover and Contents Cover?

Insurance, as we often hear, is about safeguarding what’s important to you. For business owners in South Africa, understanding the nuances of different types of insurance is crucial. Today, we’re delving into two major types: Buildings Cover and Contents Cover.

What is Business Buildings Cover?

Buildings cover, sometimes referred to as commercial building insurance, is specifically designed to protect the brick and mortar structures on your property. Whether your business operates out of a modern office block or a historic building, this cover ensures that the physical structure is protected.

It can also cover permanent fixtures such as the toilet and bath, the gardening shed, and more. Since policies differ between insurers, it is important to check your policy wording to clarify. Some policies exclude certain types of structures, and it is best not to assume your cover.

So, what does it typically cover?

From accidental damage like flood damage to unforeseen events like fire or civil disturbance, buildings cover comes to the rescue. It often includes additional protection for external glass breakage, and some policies might even cover costs such as boarding-up costs post an incident.

However, remember, like all insurance types, it’s paramount to read the insurance policy wording. This way, you’re not caught off guard when, let’s say, a particular type of malicious damage isn’t covered. In some areas, especially coastal areas, flood damage may not be covered. And buildings insurance definitely doesn’t cover damage due to a lack of maintenance or due to regular wear and tear.

How is Business Contents Cover Different?

How is Business Contents Cover Different?

Now, imagine the structure of your building is covered, but the assets inside it aren’t. That’s where contents cover, often termed as business contents insurance or office contents insurance, comes in. It’s all about safeguarding the invaluable assets within the walls of your commercial premises.

Everything from your office equipment, like laptops and cash registers, to other company assets such as stock or portable items can be covered by this type of insurance. Business contents cover is there to protect the items your company or organisation keeps on its premises. You can get a general cover plan or you can specify the items that need to be covered one by one.

What falls under business contents cover?

The plan typically pays out the replacement cost at which you insured the items you cover on the policy. It doesn’t cover damage to physical structures. In the unfortunate event of a theft or damage, like the deterioration of stock, contents cover ensures your business doesn’t face significant cash flow interruptions.

Different insurance companies might have variations in their contents cover policies, especially when dealing with specific items like electronic devices. When it comes to protecting the physical assets on your business property, understanding the limits of your cover is vital.

Why Both Are Essential

Your business premises, whether an office building or a commercial property, is likely one of your biggest assets. Not insuring it adequately is a risk no business owner should take. But while the structure is vital, can you imagine running your daily business activities without the tools, stock, or electronic equipment inside?

In essence, while buildings cover and contents cover serve different purposes, they both play pivotal roles in ensuring the full spectrum of your business is protected against a wide range of risks.

How Often Should Businesses Review Their Cover?

The commercial world in South Africa is ever-changing. As businesses grow and adapt, so should their insurance. It’s wise to reassess your Buildings and Contents Cover at least annually. This regular check ensures your policy matches your current business setup and anticipates future requirements.

What to Consider When Choosing Between Different Insurers?

Selecting the right insurer is more than just ticking boxes. While Buildings Cover and Contents Cover might seem uniform, insurers can differ in the details. You can look out for customer reviews and perhaps even industry endorsements. Some insurers excel in particular sectors, so it is a good idea choose one that best understands your business needs. A well-informed decision can save headaches later on.

How to Get Affordable Rates for Your Business Building & Contents Cover

Need help finding the right commercial property insurance for you? You can fill in the form on this page, and we will match you with the best insurer for your needs, who will then contact you. With many years of experience and insights into how the insurance industry of South Africa ticks, we’ve set up our algorithms to ensure you’re matched with the ideal option for you from a range of insurers. You can also get a business insurance quote for other cover types.

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