Commercial property insurance for small and medium businesses
Small and medium business will generally insure their commercial property under a “business insurance package” that are designed to make taking out multiple cover elements cost effective and manageable.
In the one policy you can select to take out any or all of covers you feel you need.
Business insurance packages are typically defined events policies.
What does this mean?
According to David Porteous of Brooklyn Underwriting, “Section 1 of the Business Package Policy normally covers the building and common property of the business itself. It is the main operating section of cover under the policy. An example is: If your schedule indicates that You have taken out insurance under Section 1 (Property Damage), and if the Property at the Situation and/or premises is damaged by one or more of the defined events listed below occurring during the period of insurance.
In order for cover to be in place, the loss must occur from a defined event. This will be included in the policy itself and generally include such things as:
- Fire
- Lightning
- Earthquake
- Storm
- Malicious Damage
- Accidental Damage
Commercial Property Insurance for Larger Businesses
The Industrial Special Risks(ISR) Mark IV policy is an institution of the Australian commercial and industrial insurance landscape. It is an open perils policy which means that it covers all the elements of physical loss, destruction or damage unless excluded by the policy.
As you can see, the policy seeks to cover “any” physical loss or damage “not otherwise excluded” by the policy. This is the main point of difference between the named perils counterpart.
The sums insured for ISR policies vary from insurer to insurer. In most instances and ISR will not be used unless the sum insured is at least several millions dollars.
Commercial property insurance tips :
Underinsurance – Generally 80%* or more of value needs to be insured or claims may be scaled back (even if claim less than sum insured)
*For general information purposes only. May vary significantly between different insurance policies. Important: Call 1300 542 573 and check your policy wording for more information.
New oh & s legislation – your building may cost more to rebuild than you think to comply with new regulations
Business interruption – allow enough time …it often takes more time than you think for the business to return to trading pre accident
Vacant property: Risks increase. If period will be longer than 90 days you need to advise your broker. Insurer needs to know.
Changes in tenant occupation: Risks change. advise your broker. Insurer needs to know.
More online tools for commercial property owners considering insurance
To assist small business and commercial property owners in considering important cover aspects in a way that is easy to understand for non-insurance experts to understand the team at SMART Business Insurance Brokers have prepared an animated video, https://vimeo.com/153216438, and an infographic, https://smartbusinessinsurance.com.au/commercial-property-insurance
For a suitable solution to your commercial & business property insurance needs TALK to a SMART Business Insurance broker on 1300 542 573
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