Commercial building & property insurance
The purpose of commercial/business property insurance is to cover the loss or damage to buildings and property. It sounds simple.
If you are looking for commercial & business property insurance you may want to consider if your business is adequately insured so that your business is able to resume from where it left off before the accident.
That means being able to rebuild and replace the buildings and contents at today's prices quickly.
Recent OH&S legislation requires that new plant fixtures and equipment need to be taken into account.
It is important to note when providing insurance brokers with information on insured values that premium savings for only partially insured commercial & business property won't make a great contribution to covering any shortfalls if you are underinsured.
What may commercial property insurance cover ?
Commercial property insurance may cover:
- The building space you operate your business in
- Stock and contents
- Business equipment
- Fixtures and fittings
While standard commercial property insurance covers damage to buildings, contents (and when included, stock) caused by fire perils and accidental damage, it does NOT include loss of income via business interruption.
Many businesses also take out Business Interruption Insurance to protect against lost income or take out protection via a tailored Business Insurance Pack, which can include property, stock, business interruption, theft & money, public and product liability, glass etc.
Important : water damage may not be covered. Please check your policy schedule carefully. A SMART business insurance broker may be able to assist you get the specific coverage inclusions you are after.
What factors influence the cost of commercial property insurance ?
Commercial property insurance rates are influenced by a number of key factors including the following :
- Size: it makes sense that ; if everything else is equal , the larger the factory, retail space or office space the greater the insurance premium.
- Location: In Australia it is well documented that far North Queensland commercial properties face significant natural hazards and are relatively expensive to insure when cover is offered. Any location in Australia where commercial properties have been subject to a high level of claims are relatively expensive to cover.
- Claim rates and claim size: Does the business that occupies your commercial property operate in an industry where flammable or dangerous materials are used ? Is there are a high level of theft for your materials or finished goods? Is your commercial property located in a town or suburb where crime rates are high ? Claim rates, and the cost of typical claims for similar properties and/or occupiers will impact the cost of your commercial property insurance.
- Security: What type of security measures do you have in place in your commercial property ? CCTV, Monitored Alarm, Patrols, Deadlocks; Reinforced entry points. The greater the security measures in place at your commercial property the better, to obtain cover at an affordable cost.
- Age of commercial property: How old is your commercial property ? If everything else is equal , typically the newer the commercial space the more affordable the cost of the insurance premium. If your commercial property is older , has it been rewired?
- Business equipment: What type of business equipment do you use? Expensive large scale plant and equipment or custom built high tech equipment can be expensive and hard to replace. This will increase the cost of commercial property insurance.
- Fitout: How much would it cost and how difficult would it be replicate your fitout . The less expensive and easier the replacement the cost ; typically the more favourable the impact on your commercial property insurance cost.
- Stock: What is the value of your stock.? If you have little or no stock this will favourably impact the cost of commercial property insurance. The sums insured of stock will impact cost.
- Sprinklers: If your goods are flammable, and the value of your contents is considerable, sprinklers may assist you in obtaining suitable cover a reasonable price.
- Total sums insured: The total sums insured of buildings , stock, machinery, finished goods will impact on the cost of commercial property insurance.
Insurance companies are wary of electrical wiring in older commercial properties, which may translate in difficulty to insure and higher costs for the property owner and occupier. A SMART business insurance broker may be able to help:
1300 542 573.
Old heavy equipment may also be expensive to insure.
Conversely if your business operates from a few computers the cost of your cover may be relatively low.
There are many factors that influence the cost of commercial property insurance. Not sure how much cover you need? Call 1300 542 573 to talk to a friendly SMART business insurance broker who may be able to assist you in finding suitable cover at an affordable cost.
Commercial property insurance quotes for offices, factories, warehouses and shops
Whether your business property is a factory, warehouse or office building our team of SMART Business Insurance brokers can provide you with multiple quotes on suitable policies from leading insurance companies and underwriters.
For a considered responsive solution to your commercial & business property needs TALK to a SMART Business Insurance broker on 1300 542 573 or email us at firstname.lastname@example.org .
1300 542 573
TALK to a SMART Business Insurance adviser
Monday – Friday 8.45 am - 6.00 pm AEST
What is the correct "Situation Address" to list on my business policy.?
The Situation Address must be the address of either the physical risk being covered (like a property) or, in the case of Liability policies, the physical address for the normal place (or places) of business.
If you have multiple business locations, e.g., a number of branches, shops, factories or depots, then ALL location addresses must be shown on the schedule and advised to the insurers. And the multiple location addresses then needs to be kept up to date with the insurers at all times, in the event of any changes.
Insurers will not accept a Post Office box as a "normal place of business", because you cannot do business from a PO Box.
A PO Box is fine for a mailing address, but cannot be used as the address of the "Situation" on any policy.
For example, Public Liability policies usually operate "at and from" an address, which should be the normal place of business for a business policy.
If the business was run from home, for example, then the home address would be shown as the normal place of business. The "at and from" nature of the cover would then cover any transitory business conducted away from the home address (or away from a real business address, as the case may be).
If the business was run from home but was selling through stands or kiosks at markets or shopping centres then that would have to be disclosed to the insurer, as it affects the risk.
The team at Smart Business Insurance tendered for our Corporate insurance cover including building, travel. They offered very competitive quotes and have continued to do so year after year. The staff are always efficient and friendly and I would not hesitate to recommend them. Well done Smart!
Kind regardsErwin Tan
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