Commercial Property Insurance in Australia – Everything You Need to Know

Table of Contents
Table of Contents
Table of Contents

Commercial property insurance isn’t as simple as it looks. It’s a complex purchase that needs to be done right – especially in Australia, where natural disasters are extremely common. That is why it’s crucial to have comprehensive coverage in place.

We’ll discuss the different types of coverage available, how to choose the right insurer, and what to do in the event of a claim.

By the end of this guide, you’ll have a clear understanding of property insurance in Australia – and be well on your way to finding the right policy for your needs.

commercial property insurance storefronts

What Is Commercial Property Insurance?

La Niña-generated east coast storm and flooding claims in 2021 and 2022 totalled a staggering $5.92 billion with more than 296,000 claims lodged making it more important than ever for business owners to have adequate commercial property insurance in place.

But what exactly is commercial property insurance? Commercial property insurance is a type of insurance policy that protects against specific risks related to commercial properties. These policies are generally more complicated than those for residential properties and may include coverage for loss of income, business interruption, and extra expenses (such as moving).

Commercial Property Insurance covers the following:

Building Coverage

This includes the building, structures, and any additions or alterations done to your building. Also included in this category are any fixtures or equipment attached to the building itself, such as lifts, staircases, ventilation, etc.

Contents Coverage

This provides coverage for the contents inside your business premises, like furniture, equipment, and other valuables. As a property owner – you may be letting the premises unfurnished, or your lease might require your tenant to insure and be responsible for any furnishings like this.

Business Interruption Coverage

This covers loss of rental income due to an insured event occurring at your premises. This could mean that if there is a fire or storm at your premises causing damage which means you cannot lease your business for a certain period of time (e.g., four months), then you may receive compensation for lost income while it is being repaired.

This type of cover does not include “tenant default” if a tenant stops paying you rent and you are trying to evict them.  It also will not pay replacement income if the event which caused the damage is not covered (e.g. if you do not have flood insurance).

Landlord Liability Coverage

This provides coverage for members of the public suing you for personal injury or property damage that you are responsible for as the owner of the property.  This can be as simple as slipping or tripping while visiting your tenant’s business but can be very costly for you to have to defend against legal fees.

The Importance of Having the Right Commercial Building Insurance

As a business owner, you understand the importance of protecting your investment. You’ve worked hard to build your company, and you want to make sure it is properly protected in the event of an accident or disaster.

That’s why property insurance is so important. Commercial property insurance can help to cover the costs of damages or losses incurred by your business. It can also help to protect your business from lawsuits or other legal action.

When selecting commercial insurance coverage, it is important to work with an experienced insurance broker who can help you choose the right policy for your business. They will make sure you understand exactly what is covered by your policy and what is not. Don’t be afraid to ask questions so that you can be sure you have the coverage you need. Proper commercial insurance coverage is essential for any business owner who wants to protect their investment and their livelihood.

How to Choose the Right Insurer?

An insurance broker’s job is to make sure you have the right insurance coverage for your business. Most people think that the only thing that matters is the price of the policy. However, this couldn’t be further from the truth, as the most important thing is to make sure you’re actually covered for what you need.

Insurance policies are not all the same, and it is essential to have a policy that is fit for purpose. Great insurance brokers will work tirelessly to find you the insurance policy that is both competitively priced and fit for your particular needs.

If you’re looking for commercial landlords insurance in Australia, make sure you get in touch with a CIB insurance broker. We have years of experience in the industry and can help you find the fit for purpose cover.

What to Do in the Event of a Claim?

No matter how well you maintain your commercial property, accidents can happen. And any kind of damage can be a major setback for a business, large or small. A severe storm could damage your roof, a pipe could burst and flood your office, or a customer could slip and fall in your store.

If any of these things happen, you’ll need to file a commercial property insurance claim. The claims process can be intricate, but with a little preparation, you can minimize the stress and ensure that you get the financial compensation you deserve.

Here are three things to do in the event of a commercial property claim:

  1. Document the damage – Be sure to take photos or videos of the damage as soon as possible. This will help support your insurance claim and give you a record of what needs to be repaired or replaced.
  2. Notify your insurance broker – Your insurance broker is your advocate in the insurance claims process. They will help you navigate the paperwork and communicate with the insurance company on your behalf.
  3. Make repairs – Once you have approval from your insurance company, start making repairs to your property right away. The sooner you can get your business back up and running, the better.

Taking these steps after a commercial property claim can help minimize the disruption to your business and get you back on track quickly.

Bottom Line

How you choose to protect your commercial property will depend on your business and personal circumstances. It’s a unique decision to be made and one that could potentially save your bottom line.

As such, it should never be treated lightly.

Consider your circumstances, needs, and risk tolerance – and use this guide to help you get the coverage you need.

Now that you know the key ingredients, you can enrich your buying experience with expert advice from a knowledgeable CIB insurance broker who will get you up to 9 commercial property insurance quotes and give you the guidance and support you need to make the right decision for your business.

General Advice Warning

All of the information above is “General Advice” only – meaning it does not take into account your personal needs or circumstances, and might not be right for you.  If you give us a call, we can talk through your situation and give you personal advice to help you make the right decision for you.

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