Do you own a commercial property in Australia and require insurance advice?
If so, you’re used to managing risk. You know how to budget, plan and prepare for just about every business-related scenario under the sun. However, there might be a few bases you’re forgetting to cover.
How would you cover your losses in the event that your work-related property becomes damaged by fire, wind, theft, vandalism, or a host of other unspeakable events? While no one likes to think about these things, the reality is that no one is immune to them.
This is where commercial property insurance can make a world of difference.
Today, we’re diving into this type of policy to explain all of the different types of cover you can expect. It might be the one investment that makes a world of difference down the road.
Ready to learn more? Let’s get started.
What is Commercial Property Insurance?
Sometimes called small business property insurance, this is a policy designed to protect your business against damage that could occur to your mission-critical equipment. It also protects against the loss of such items, should that occur.
At any time, disaster could strike, and it’s smart to be prepared. Whether you own your work property outright or you lease it through a third-party provider, you’ll need this cover to prevent paying out of pocket if it’s ever compromised.
Why Should I Invest?
There are myriad reasons why Australian business owners should invest in
commercial property insurance. Let’s take a look at the top ones.
Cover for Your Business Property and Office Contents
As stated, this policy will ensure that if your property or equipment becomes damaged or lost, you’re not held 100% financially responsible for replacing it.
Property-Specific Cover
In addition to general cover, some commercial property insurance companies will also provide specialized plans centred around your specific property.
Peace of Mind
There’s plenty on your plate and mind as you juggle the stressors of property management. You shouldn’t have to worry about losing it all after a freak accident.
What Do Most Policies Cover?
As you research your options, you’ll find that there are different commercial property insurance rates and types of plans available. While specific cover options might vary, most policies will protect against certain events that could cause damage or loss to your property or the contents within it.
A few examples of these events include:
- On-premise property loss or damage
- Accidental property damage
- Loss or damage to your contents
- Water-related damage (e.g. busted pipes, leaks, damaged water mains)
- Property loss due to theft, attempted theft, vandalism, assault, burglary or an armed hold-up
- Signage damage (including glass)
- Goods damaged while in transit
- Machinery malfunction (including technology, heavy-duty equipment, boilers, etc.)
- Social setbacks, including civil unrest, riots, or labour disturbances
- Physical impact to your property caused by tree limbs, vehicles, watercraft, or compromised buildings on adjacent properties
In addition, most policies will also extend to cover property loss or damage caused by inclement or extreme weather conditions, which include:
- Fire
- Earthquake
- Explosions
- Lightning
- Wind, water and rain
- Snow, sleet, and hail
What are the Common Exclusions?
It’s important to read all of the definitions included in your commercial property insurance policy. In particular, you’ll need to understand the way that your business personal property insurance plan defines “commercial building” and “contents”.
In most cases, these terms will include all of the tangible property that falls under your possession. It will also cover all of the property that you maintain control over or are responsible for insuring, even if you don’t personally possess it.
While there are exceptions, most policies do not cover certain items deemed non-essential to the ongoing operation of your business. These include, but are not limited to, the following entities:
- Stock
- Jewellery
- Artwork
- Money
- Watercraft or aircraft
- Vehicles or trailers licensed for public road transportation
- Livestock
- Architectural structures including bridges and railway tracks
In addition to these physical exclusions, there are also certain events that most commercial property insurance plans won’t cover. These might include:
- Flood (often offered as optional cover)
- Acts of terrorism
- Looting, invasion, war or rebellion
- Intentional damage
- Storm surges
- Sea-initiated damage (e.g. tidal waves) unless the result of a hurricane
- Employee fraud
- Brushfires or cyclones
- Accounting errors
- Operational errors (e.g. faulty workmanship, regulatory non-compliance)
- Damage from insects and rodents (including termite damage)
- Gradual and natural wear and tear
How Can I Find the Best Policy?
Are you searching for the best commercial property insurance policy to protect your business? If so, one quick online search will reveal myriad options. How can you discern which providers are reputable and which plan is the best?
When comparing policies, be sure to review the following features to make sure you’re signing up for suitable cover that fits your business needs.
Cost of Cover
One of your first considerations will be the actual cost of the cover. How much are your premiums and can you afford to weave them into your budget?
Range of Cover
Of course, you’ll want to make sure the commercial property insurance policy you’re eyeing includes the right amount of coverage necessary for your business.
All Policy Exclusions
A policy could exclude one specific event, and suddenly, it’s no longer an effective solution for your property.
Any Additional Benefits
There might be an additional cover option that turns a prospective policy into “The One”.
Benefit Payment Conditions
Compare what details you’ll need to prove to your insurance agency before you can claim the benefit that you deserve.
Policy Cancellation Terms
Can you freely cancel your policy any time you want? Or, are there exorbitant fees and other negatives involved?
Find the Commercial Property Insurance You Need
Now that we’ve covered what most policies cover and exclude, as well as what to expect from each plan, are you ready to invest in commercial property insurance for yourself? If so, we’d love to help.
For more than 20 years, our team of passionate and experienced insurance brokers has helped clients just like you find the cover they need. We’re well-versed in the legalese, paperwork and other duties required to secure the perfect insurance policy.
Contact us today to learn more about what we do and let’s walk this journey together, one step at a time.
Get A Quote
We can help protect your assets, whether personal or business. Grace Insurance are the experts and can give you the peace of mind needed.
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