Owning commercial property can be a lucrative investment, but it’s not without its share of risks. Best practice is to take out a comprehensive commercial landlord insurance policy to ensure your property is covered and avoid the common mistake of assuming your tenant’s insurance will cover you both – it almost never will! Despite the clear benefit of having the right insurance, it has become increasingly difficult to find affordable insurance. In the last few years, premiums have risen as a result of increasing inflation, supply chain issues, labour shortages and the increased frequency and severity of natural disasters. As a result, finding the right policy is an even more tricky affair, which is why we’ve summed up some of the main things to look out for.
At CIB, we understand your commercial property is a major investment and protecting it is your priority. With the right cover, you can rest assured you are protected against a variety of unforeseeable events. It is not always straightforward and easy to find the right policy. The terms and conditions of your policy are often buried in endless jargon and change depending on the insurer, options you pick or the policy exclusions. Our expert insurance brokers can help you understand your policies, renewals and quotes.
When you are looking at commercial landlord insurance, the 4 most important covers to consider are building, contents, business interruption and landlord liability covers. Not only can these provide cover for the physical structure of your property, they can also protect you against loss of rental income due to damage by an insured event as well the risk of being sued if someone visiting the property is injured. You can find more information about the different types of cover on our commercial landlord insurance page.
When considering commercial landlord insurance policies, it is important to take into account the nature of the businesses occupying your property. Different types of activities carry varying levels of risk. For instance, an administrative office typically carries a lower risk level compared to a manufacturing or industrial business. If your property’s tenant changes their business activities or if a new tenant moves into the building, it’s important to notify your insurer immediately. Failing to do so can result in a coverage gap, leaving you exposed to potential risks without proper insurance protection. Understanding the exact nature of your tenant’s business and keeping your insurer informed ensures you remain fully covered.
Securing the right commercial landlord insurance is a critical step in protecting your investment. By carefully considering coverage, optional extras and premiums, you can ensure you’re prepared for a variety of risk events. Consulting an insurance professional, like our team of experts at CIB who understand the nuances of commercial landlord insurance in Queensland, can help you make informed decisions to protect your investment.