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Landlords and Tenants Have Different Insurance Responsibilities
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BUILDINGS COVER (Landlord)
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CONTENTS & STOCK (Tenant)
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LIABILITY COVER
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RENT & BUSINESS INTERRUPTION
Understanding Who Insures What
Commercial leases in the UK typically split insurance responsibilities between the landlord and the tenant. However, every lease is different - and misunderstandings often lead to disputes, underinsurance, or gaps in cover.
This guide explains clearly which policies each party is usually responsible for, what is optional, and what is commonly required under standard commercial leases.
What Insurance Is the Landlord Responsible For?
These covers are normally arranged and paid for by the landlord or property owner.
Core Landlord Policies
- Buildings Insurance - full rebuild cost, structure, roof, floors, fixtures
- Property Owners’ Liability - injury or damage to visitors caused by the premises
- Loss of Rent - rent protection following fire, flood or major damage
- Communal Area Cover - hallways, stairwells, car parks, access routes
- Glass & Shopfronts (where stated in lease)
- Property Terrorism Insurance (often required for commercial mortgages)
Additional / Situational Landlord Covers
- Unoccupied property insurance
- Flat roof or non-standard construction cover
- Legal expenses for tenancy disputes
- Terrorism cover (often mandatory in city centres)
- Subsidence cover
- Lift, boiler & machinery breakdown
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What Insurance Is the Tenant Responsible For?
Tenants must cover their own business operations, equipment, improvements, staff and liabilities.
Core Tenant Policies
- Contents & Stock Insurance
- Tenants’ Improvements - internal fit-out, partitions, flooring, signage
- Public Liability Insurance - injury/damage caused by the tenant’s activities
- Employers’ Liability - compulsory if the tenant has staff
- Business Interruption Insurance
- Shop/Office Insurance (combined policy)
- Cyber insurance (if handling data or payments)
Optional or Situational Tenant Covers
- Goods in Transit
- Equipment breakdown (e.g., refrigeration, IT systems)
- Loss of licence (hospitality sector)
- Terrorism cover (if required by lease)
- Portable tools & equipment
- Professional indemnity (if offering services/advice)
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Common Landlord–Tenant Insurance Misunderstandings
Leases often create confusion. Here’s what is frequently misunderstood:
- Tenants assuming landlords insure their contents
- Landlords assuming tenants insure shopfront glass
- Confusion over responsibility for “improvements”
- Assuming a service charge includes insurance for everything
- Believing rental holidays are automatically insured
- Misunderstanding public liability vs property owners' liability
“Insure24 helped us clarify our lease responsibilities and arranged both landlord and tenant insurance for our building.”
Martin R., Property ManagerFREQUENTLY ASKED QUESTIONS
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Does the landlord always insure the building?
Yes - almost all UK commercial leases require the landlord to insure the structure, fixtures and communal areas.
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Does the tenant insure shopfronts or signage?
It depends on the lease - some require tenants to insure glass and external signs, while others include this in the landlord’s buildings policy.
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Who insures tenant improvements or fit-outs?
Tenants normally insure their own improvements, fittings and internal alterations unless the lease says otherwise.
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Who insures public liability?
Landlords insure liability arising from building condition. Tenants insure liability arising from their business activities within the premises.
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What happens if both parties assume the other is insured?
Claims may be rejected, or one party may be financially liable for damage they believed was insured. Always review the lease carefully and arrange the correct cover.