Commercial Property Insurance Perth and Sydney

If you are a business owner you may wish to focus on the business itself rather than thinking about the external factors that may affect it. But unfortunately, accidents do happen. If you want to have peace of mind consider investing in commercial property insurance Perth and Sydney business owners can trust.

Commercial Property Insurance Broker

Commercial Property Insurance Broker

Commercial Property Insurance Perth and Sydney – What Is It?

Generally, commercial property insurance, known also as a business property policy, could protect you from unexpected unfortunate events such as:

  • Malicious damage, theft or attempted theft, vandalism
  • Accidental damage on the premises
  • Broken pipes and leaks
  • Machinery breakdown
  • Loss of rent

But Australia is a harsh environment. If your business is situated in Perth and Sydney commercial property insurance could also defend your interest against natural disasters, including:

  • Fire
  • Lightning
  • Hail, sleet, and snow
  • Wind, rain, and floods
  • Earthquakes
  • Cyclones

Types of Commercial Property Insurance

There is no single type of insurance that is suitable for every business owner. There are many factors that you may take into consideration when choosing the right type of insurance to suit your personal needs.

First off, consider the type of property you are insuring. Do you run an office building or farmland? Are you an owner of a property or are you renting the property? Do you wish to protect your whole property or only the machinery you need to run your business?

There are three main types of commercial property insurance Perth and Sydney have to offer that is imposed as a worldwide standard.

  1. Basic insurance. This type of insurance will only protect you from basic risks, usually such as theft, fire, lightning, civil commotion, or common accidents. While this is the cheapest option, this type of insurance does not provide very large coverage.
  2. Broad insurance. In addition to the risks covered in the basic insurance, the broad policy will add extra protection such as snow, sleet, rain or other water-related damage, even structural collapse. This is usually the preferred option for most businesses.
  3. Special insurance. The most complete, and respectively most expensive type of protection will cover almost any risks that your property may face, earthquakes, flood,  and cyclones. Still, there may be risks that are not covered as part of the insurance and they are usually outlined in the contract. Additional cover can and will be advised by Grace Insurance Perth and Sydney insurance brokers.

Renting or owning the property

If you are renting the property, basic insurance may be a suitable option. However, if you own the building, investing in a higher level of protection may save you a lot in the long run.

On the other hand, commercial property insurance is also subject to differentiation depending on the insured asset.

  1. Building insurance. This type of insurance covers accidents related to the property itself. Its coverage may include broken pipes, floods, storms, fires, subsidence, etc. The option is suitable for business owners who also own the property.
  2. Contents insurance. Providing insurance for your content basically means protecting what’s inside the property. Such insurance usually covers your equipment and stock. This is a good option if you are renting the property since the content is the tenant’s responsibility.

According to the pay off method, commercial property insurance could also be put into two common categories:

  1. Actual Cash Value (ACV) Coverage. In case of an accident, ACV insurance will reimburse the company for the actual cash value. In other words, the amount you have initially paid for the damaged item.
  2. Replacement Cost Coverage. This is a more expensive insurance option. In case of an accident, the insurance company will pay the current market price of the damaged item so it can be replaced.

Choosing the Right Insurance for Your Business

Many companies offer commercial property insurance in Perth and Sydney business owners can trust, each one providing different coverage under a similar level of insurance.

To ensure you are choosing the best option for your business, be sure to compare your options and read the fine print to avoid unpleasant surprises.

Here are some tips to guide you in making the right decision.

Price to value ratio

Even with a limited budget be careful if you’re tempted to go for the cheapest insurance you can find. When it comes to insurance policies, what you pay is what you get.

The main factors that will affect your insurance premiums are the range of cover and the amount of coverage. Choose the range carefully to ensure your business needs are fully protected.

It is also important to remember to check not only the coverage but the exclusions as well. After all, you don’t want to miss a crucial exclusion you may have otherwise relied on.

What to include in your insurance policy?

If you have decided to protect your business, insuring the building and stock seems like an obvious solution. Still, there are other assets you could include in the policy:

  • Office equipment, including computers, phones, and furniture
  • Other equipment used for manufacturing or processing
  • Signs and satellite dishes
  • Landscaping and fence
  • Important documents such as accounting records

Consequential loss

Generally, commercial property insurance only covers the amount for the damaged items. In many cases, however, the process of filing a claim, receiving the compensation, and replacing the item takes some time that may result in loss of income.

Including coverage of consequential losses may compensate your business for fixed operational expenses or salaries while the business is on hold.

Understand your insurance

Reading the fine print is important when signing any document. It is only natural, however, to get confused among the terms throughout the contract.

A reputable insurance company will gladly explain the complete process and answer all your questions. Still, getting familiar with the terms before signing the insurance could help you understand your policy and ask the right questions.

Update your insurance when necessary

There are moments when you’re holding more stock than usual. If your commercial property insurance includes stock coverage, don’t forget to call your insurance company and inform them of the extra so it can be added to your policy. Some clients get excited with new equipment, and forget to advise Grace Insurance in Perth and Sydney.

Get a Commercial Property Insurance Quote You Can Trust

If you’re in need of quality coverage at a fair price, contact Grace Insurance today. We’ve been serving businesses in Australia for almost 20 years, and we would love to help you find the right policy to meet your needs.

Located in Perth and Sydney, and servicing all of Australia, Grace Insurance is the region’s premier insurance resource, delivering top-notch solutions to help cover all aspects of your home and business or faith organisation. Contact us today to learn more about our faith insurance coverage and let’s connect!

Grace Insurance does not accept any liability arising out of any reliance on the information in this article. We urge you to consult your insurance broker for personal advise, as we only provided general advise.