Commercial Property Insurance

If you own any type of commercial property no matter what size or type, Commercial Property Insurance is a must. It covers a range of different property types including warehouses, shopping centres, factories, and unit and apartment blocks.

A typical Commercial Property Insurance policy will provide cover for damage done to non-residential properties. Your policy can cover:

• Damage from floods, fire, or earthquakes

• Theft

• Malicious and accidental damage

• Loss of rent

• Personal injury/property damage

• Machinery breakdown

The amount of cover you will require can vary greatly. Insurance brokers will determine how much coverage you need based off how much it’ll cost to restore your company to the same financial state as before damage was to occur. That means being able to rebuild and replace the buildings and contents at today's prices without depreciation for wear and tear. This is known as replacement cost coverage. Businesses with highly customised or specialised property will typically mean greater replacement costs. Keep in mind that exclusions also generally apply.

Several factors can affect the cost of commercial property insurance premiums, including the following:

• Age of commercial building

• Business equipment

• Location

• Security

• Size

• Fitout and extensions

• Stock

• Sums insured

The age and location of the commercial property you want to insure can significantly affect the premium on your commercial property insurance. As a general rule, if your building is older, your premium is likely to cost more. Insurers’ main concern when it comes to older builds has to do with the electrical wiring. Aging wiring represents higher chances of fires, which can mean underwriting rejections and higher premiums.

If your building is located in a region that is prone to significant natural hazards (for example, Far North Queensland), you’ll also likely to incur higher premiums. Any locations in Australia where commercial properties have had a high number of claims will be relatively expensive to insure.