Commercial properties, like any other asset, are subject to damage or risk.

Any damage could result in major expenditure for repairs or may even cause other physical and financial losses for the business. To help companies assess and manage property risks, it’s best to invest in commercial property insurance.

Different types of business insurance policies aim to protect medium to large businesses and their corporate assets, covering all kinds of industries and sectors, including manufacturers, MNCs, and other commercial property owners.

Here’s everything you need to know about commercial property insurance.


What is Commercial Property Insurance?

Regardless of the kind of commercial property you own, every building is susceptible to some form of risk. An insurance policy for a commercial property can help cover several expenses, like property damage, rental loss, theft, malicious intent to damage, and more.Commercial property insurance is a type of business insurance that covers your assets against loss or damage done to non-residential properties. Depending on the circumstances, the insurance may include landlord, strata title, or special risks policies.

No matter the size or type, you must protect your business property against any kind of fraudulent or dishonest act. Business owners can opt for insurance for a commercial property like a warehouse, shopping centre, factory, office blocks, or manufacturing unit.

Note that every insurance policy contains specific terms and conditions that determine your inclusions, exclusions, and policy limits. 

Commercial property insurance offers coverage under the following circumstances or events:

  • Accidental property damage
  • Damaged or leaking plumbing
  • Natural disasters like earthquakes
  • Flash fires, explosions, or bursts
  • Lightning and thunderstorms
  • Personal injury by a moving object
  • Vandalism from malicious intent

What Does Commercial Property Insurance Cover?

Commercial property insurance addresses any kind of damage sustained on a property’s structure, including fixtures and fittings, and other services and utilities part of the building premises, often subject to specific conditions in a particular policy.

Commercial property owners can choose from a range of payment options, depending on the nature of the property and the type and extent of damage incurred. A basic insurance for commercial property will often cover:

  • Costs for replacing, repairing, or rebuilding a building or its contents
  • Costs for replacing fixtures and fittings with similar items
  • Costs for renovating the building at another location or site

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Who Can Benefit From Insuring Commercial Property?

Losing a property can cost your business a fortune! Commercial property insurance provides broad coverage for damage resulting from a range of events. It is an excellent option for retailers, business-to-consumer, and business-to-business entities. When looking at insurance plans, factor in the working conditions and nature of your business premises.

Different Types of Commercial Property Insurance

The type of commercial property insurance policy you choose is based on the nature of your business, risks involved, and surrounding conditions. Here are some of the most common types of commercial property insurance cover options.

General Property Insurance

Protects valuable business assets in or around a commercial property, like furniture, stock, technical equipment, heavy machinery, and other possessions in the event of a break-in, theft, or as a result of damage. You can opt for both liability coverage and property insurance as per your business needs.

Commercial Building Insurance

Commercial building insurance protects the physical structure of a business space, including fixtures and fittings, in the event of a break-in or damage by fire, thunderstorm, or other natural disasters. A range of insurance providers offer flexible options for payment for portable and non-portable properties.

Public Liability Insurance

Public liability insurance safeguards your business in case of negligence or illicit behaviour caused by commercial activities on your premises. Public liability cover also protects businesses for injuries and damage sustained to a third party member during a particular job, or while using their products or services.

Business Interruption Insurance

Addresses debt and recovers financial losses for a company experiencing disruption. Business interruption cover supplements an enterprise when it is temporarily shut down. For instance, government mandated road closure or industrial activities that interrupt business operations.

Portable Property Insurance

Portable property covers businesses for portable items like phones, laptops, desktops and other tools of trade whether it’s away, at, or from the premises. It provides coverage for both loss of goods and damage sustained to goods, as a result of a fire, collision, overturning, and theft, including the conveying vehicle being broken into.

How to Choose the Right Commercial Property Insurance Plan?

Commercial property insurance policies differ from business to business. This decision is dependent on many factors, like the:

  • Size and type of business 
  • Location and target demography
  • Potential industry risks associated
  • Budget for the insurance coverage

Key Takeaways

Invest in Commercial Property Insurance

If you’re looking to protect your business against theft, vandalism, and natural disasters, find reliable commercial property insurance brokers this instant. Leah Jay can help you determine a coverage plan that best addresses your business needs.

Leah Jay deals with commercial property management and procurement for small to large-scale businesses in Australia. Our expert team has experience with the commercial real estate landscape and would be happy to assist you by answering all your queries.For commercial property management services, call us today.

Disclaimer: This information is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your situation, and for professional advice, seek out a financial adviser.