What an office building program covers
- Commercial property for the building at replacement cost, including building systems and the owner's property in common areas.
- Loss of rents (business income), based on the rent roll, for rent lost while the building is repaired after a covered loss.
- General liability for lobbies, elevators, garages, sidewalks and other areas the owner controls.
- Umbrella / excess liability above the general liability.
- Equipment breakdown for elevators, HVAC, electrical and other building systems.
- Ordinance or law for the extra cost of rebuilding to current code after a loss.
Owner's policy vs. tenants' policies
The owner insures the building and the owner's liability. Office tenants insure their own furniture, equipment, improvements (depending on the lease) and their business liability. Leases should require tenants to carry general liability, name the owner as additional insured, and send a certificate each year. That keeps a claim that starts in a tenant's space with the tenant's insurer first.
Vacancy is the office owner's hidden risk
When a major tenant leaves, a building can drop below the occupancy a property policy expects. The common ISO commercial property form, for example, treats an owner's building as vacant unless at least 31% of its square footage is rented and used by tenants or used by the owner, and restricts coverage after 60 consecutive days of vacancy (source: IRMI). Tell us when occupancy changes. See vacant building insurance.
Office space in a mixed-use building?
If the building also has apartments, see mixed-use building insurance. For retail properties, see shopping center and retail insurance.
Office buildings are quoted by Jacob directly. Send a message or call 646-494-4355. If you also own NYC apartment buildings, the instant estimate gives a quick range for those.
Frequently asked questions
Do you insure office buildings outside New York?
Yes. We are headquartered in NYC and insure office buildings and other commercial properties across the United States.
What do you need to quote an office building?
The address, square footage, construction and year built, number of stories, sprinklers, the tenant list and rent roll, recent updates to roof and systems, five years of loss runs and the current premium.
Is there an online estimate for office buildings?
Not yet. The instant estimate is built for NYC apartment buildings. Office buildings are quoted by Jacob directly.
Should my office tenants have their own insurance?
Yes. The owner's policy does not cover tenants' contents or business liability. Leases normally require tenants to carry general liability and name the owner as additional insured.