I was feeling quite overwhelmed with insuring my new commercial property. But after speaking with Tracey for a few minutes on the phone I knew I was in good hands. Tracey was very knowledgeable and had my policy setup within a couple of days. She really took the stress out of the whole process. Thank you!
Commercial property insurance
Quick answerWhat is commercial property insurance, and which parts are mine to insure?Owners generally insure their own building. Tenants need to consider their contents, stock and business profits. Who insures the fit-out, glass and air conditioning depends on ownership, the lease and the cover already in place. Owners and tenants also need to consider their own liability cover. Call Consolidated Insurance Brokers on 07 3292 1111 for help working out which insurance you need.
The building might be insured, but what about the fit-out, the contents and stock, or the income you'd lose if you couldn't trade? Whether you own or lease the premises, we'll help you work out what's already covered and what still needs insurance.
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We had excellent service in obtaining insurance on a newly purchased commercial property. Clayton Rowlings explained everything so clearly and very patient with many questions regarding different options. Highly recommended! Thanks Clayton.
Tracey helped me sort out professional indemnity and public liability insurance for my new business - she was super helpful throughout the process helping me navigate for the first time.
Deja provided a prompt and professional service in securing a policy that suited my requirements.
Terrific experience with Gina. I had a difficult policy which other brokers couldn't find a solution for. Gina had an option for me within a few hours. I would highly recommend.
Thank you so much Cyndie for your help/advice/service. You made the whole process so easy. Thank you again. Jason Armstrong
Alison was a life-saver for us, staying after hours to make sure that we could get the building insurance coverage we urgently needed for a property purchase.
Debbie was always happy to help with my questions and very prompt with her service.
Hi I can highly recommend Aimee Spencer for all your insurance needs she has done a fantastic effort on keeping my insurance policy once again Many Thanks for all your work
Saskia Van Oostveen was efficient, professional, accurate, helpful and friendly throughout the entire process. Highly recommend!
A great experience with Tori, attaining some tricky commercial insurance, she was very professional in catering to your needs, whilst also having a quick turn around.
Jade was wonderful, finding me insurance coverage for a commercial property. Greatly appreciated her excellent service.
I contacted Tracey E from Consolidated Insurance Brokers for some commercial property quotes. Tracey was super helpful helpful, friendly and provided great advice. Highly recommend for all your insurance needs!
Thanks for your assistance Dylan with car insurance inquiry you have been really helpful and professional.
Shona was always available and answered all my queriers. A1 service and happy to recommend.
I contacted Renay after she was recommended by a family friend, for home and contents insurance. She was prompt and helpful and had me all sorted in a couple of days. Highly recommend!
I needed fast transit insurance this week and Daniel Roussounis was outstanding in his immediate response and getting this organized for me. Can't recommend Daniel and Consolidated Insurance Brokers highly enough!
Second year organising insurance with Jim K., did not have any issues and a smooth transition. I recommend
May Lewong at the Emerald office was amazing. Easy to deal with and was quick and efficient.
Reena was absolutely fantastic during the entire process helping me set you our new home and contents insurance. Would definitely recommend to anyone.
Natasha as always, gives us professional, exceptional service and would recommend her to any business :-)
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Written by William Paull, QPIB
Co-Founder & Account Director · Read William’s full profile
Who insures each part?
Start with ownership and the lease, then check what the policies cover.
| What you own | Cover to consider |
|---|---|
| The building | Commercial Building Insurance |
| Furniture you supply to a tenant | Contents, on your own policy |
| Fit-out, contents and stock | A business insurance pack |
| Rent, or your business income | Loss of rent or business interruption |
| Your liability | Property Owners Liability for an owner, Public Liability for an occupier |
On the policies we arrange, the owner's fixtures, floor coverings, plumbing and wiring are building. Furniture supplied to a tenant is usually listed as contents.
A lease sets insurance responsibilities, but cannot show that cover was bought. Contents can include property you own or are responsible for. Check the policy definitions and schedule against the lease, particularly for fit-out. Your solicitor advises on the lease's legal meaning.
Air conditioning left with the owner needs separate breakdown cover. Check the limit against replacement cost. Our landlord page explains why servicing and replacement are different responsibilities.
Paying the landlord's premium does not insure the tenant's stock or lost trade. Equally, the tenant's policy usually does not protect the building or its owner.
Setting the sums insured
For the building, use today's rebuild cost including demolition, fees and code upgrades. Purchase price includes land and is a different figure. We commission a desktop building replacement estimate from aerial and street imagery, without a site visit. We commission it for our purposes as your broker, to inform the advice we give you.
On most policies we place, an average clause tests building, contents and stock together against 80 per cent of replacement value. Below that level a partial claim can be reduced, and after a total loss the sum insured may not cover the rebuild. A short contents figure can cut a building claim. The calculation and small-loss exemptions depend on your wording. Read how underinsurance affects a claim or how we check a reduction.
We ask about new purchases at renewal. Allow for rising costs too. Our sum insured check and sum insured guide help you review the figure.
A tenant may want a lower premium, but the owner funds a rebuilding shortfall. We explain the cover and cost so you can decide.
For fit-out and contents, use replacement cost. For stock, use purchase cost plus freight and duty, checking how your policy settles it. Mobile or valuable plant may suit a plant policy; theft is a separate selection.
Find cover for your property
Commercial landlords need to consider the building, rent and owner liability. Our landlord guide explains how they fit together.
Office insurance and retail insurance cover the business operating there. Owners also need building cover; business tenants need to consider their lease responsibilities.
Warehouse insurance considers the operator's contents, stock and other business risks.
Industrial buildings need attention to construction, tenant activities and the full cost of rebuilding, including labour, the slab and fees.
Commercial strata insurance covers the scheme. Lot owners should check what the scheme insures before arranging their own cover.
Owner-occupiers need to consider both building and business losses, in the right names. There is separate guidance for SMSF properties and owners of one or several buildings.
Protecting rent and business profits
Your lease may suspend or reduce rent while damage makes the building unusable.
Loss of rent cover must be on your schedule. Choose an amount and an indemnity period, the longest it can pay after insured damage. A longer period does not increase the amount automatically.
Allow for rent excluding GST, plus recoverable outgoings, for the full period. Longer cover gives you more time to rebuild and re-let. For landlords, we recommend at least 18 months, often 24 or 36 depending on the owner. You choose the period.
For a business trading there, business interruption protects profits after insured damage. We often find new clients have no cover for this.
Buying, changing tenants or leaving vacant
Tell us before you buy, change tenants or leave the building empty, so we can arrange the cover to suit.
A lender usually needs a certificate of currency before settlement, at its required sum insured. Allow for all rebuilding costs before questioning that figure; higher insurance does not pay more than covered costs. We give you the rebuild figure in writing; what you agree with your lender is between you and the bank. See bank requirements and other obligations.
A new tenant's work can change the premium in either direction. Changes during a tenancy can affect claims too.
On most policies we place, fire, storm, water damage, malicious damage and theft cover stops after 90 consecutive vacant days unless the insurer agrees in writing.
Your tenant's liability is different from yours
The tenant's policy is written for their business. Any protection it extends to a landlord depends on its terms; it may not cover your own liability as owner.
The liability limit in your tenant's lease does not set yours. Consider property owners liability: an owner can be sued even without trading there.
When you claim
On a policy we look after, a specialist claims manager deals with the insurer, while your broker stays involved and keeps you informed.
After a fire or storm, we pursue everything your policy covers, including damage, lost rent, site-safety work, debris removal and professional fees.
The insurer decides the claim. We challenge decisions where the policy and evidence support it.
Short answers
What does a commercial property insurance policy cover?
Consolidated Insurance Brokers arranges cover for buildings and fixtures, with liability and options such as loss of rent, machinery breakdown and glass. Flood is optional on most policies we arrange and must appear on the schedule. What you need depends on what you own and what you want insured.
What is not covered by commercial property insurance?
Wear and tear and gradual deterioration are excluded on the business packs we arrange, so the condition of your roof matters. Most also restrict cover after 90 vacant days unless agreed in writing. Storm cover for fences, gates, signs and retaining walls has a $25,000 event limit on these policies; some schedules allow more.
Am I covered if my tenant damages the property?
Accidental tenant damage, such as a forklift hitting a wall, is generally claimable; the insurer may pursue the tenant. The business-pack wordings we place also include malicious damage by a tenant. Check the schedule and excesses.
How do I choose the right insurer for a commercial property?
Compare cover alongside price. We approach nine business-pack insurers and, where the risk needs it, up to nine more. We explain the differences between the offers.
Find out which parts of this property are yours to insure, and for how much.
Ring 07 3292 1111 and talk it through with a broker, whether you hold a policy yet or not. We work out which covers are yours, and commission a desktop building replacement estimate for the building you own, free.