- Fire
- Lightning
- Explosion or implosion
- Storm, wind, rain
- Water damage caused by leaking pipes
- Impact
- Malicious acts
- Earthquakes
Commercial property insurance
Speak to a broker about organising insurance for your commercial property.
Key takeaways
- Commercial property insurance is for those who own buildings that are used for business operations.
- It covers you for damages to your building that arise because of fire, lightning, storms and more.
- Calculating your coverage amount can be difficult, but a broker can help.
What is commercial property insurance?
Commercial property insurance is a form of business insurance. It is sometimes called commercial building insurance and it protects the building that a business operates from. It covers the main structure of the building – the roof, walls, ceilings etc.
In some cases, commercial property insurance will also protect the things inside of a business, such as fixtures and fittings, machinery and equipment or stock. This is typically covered under a form of commercial contents insurance.
What does a commercial property insurance policy cover?
Typically, insured events include:
Every policy differs so it’s important to understand exactly what you’re covered for by reading the product disclosure statement (PDS).
What does a commercial property insurance policy not cover?
Every policy will have a list of exclusions, here’s some of the typical ones:
- Your own criminal or reckless acts
- Gradual deterioration
- Poor maintenance or neglect
- Damage from termites and vermin
- Unexplained shortages
- Design errors and faulty workmanship
- Government-approved demolition
- Rust or mould
Who needs commercial property insurance?
Commercial property insurance is for business owners who own and use a building for their business. This is because commercial property insurance can cover the building itself as well as the contents inside it.
If you’re a business owner who rents a building, you likely only need to consider business contents insurance.
If you’re a commercial property owner and you rent it out to other businesses, you likely only need to consider a form of landlord insurance for commercial properties.
How do I calculate how much commercial property insurance I need?
There are many factors that should be considered when calculating how much cover you need.
- The cost to replace/repair the building. If something happens to your building, how much would it cost to repair or replace it? This cost can be really hard to estimate so this is where talking to a broker who specialises in this field can help.
- The cost to replace the equipment. If you own the building and the contents, it’s wise to add up the costs for all the equipment and factor this in. You can do this by looking at the market value of your existing equipment to get a sense of how much it’s worth factoring in.
- The cost to replace stock. Have a think about how much stock you keep inside your building and what that’s worth. Be sure to factor this in.
It can be tricky to correctly estimate what cover you need so it can be helpful to speak with a broker.
Speak to a broker
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