What does ISR stand for?

Industrial Special Risks – insurance designed to protect large or complex businesses beyond standard coverage limits.

What types of risks are generally covered?

Damage, loss, theft, fire, natural disasters, accidental damage, and business interruption losses.

What are the benefits of ISR Insurance?

Comprehensive coverage, consolidated protection, and risk management guidance.

What are the drawbacks?

Some exclusions (e.g., war, nuclear events, certain machinery breakdowns). Risks are not included in an ISR unless explicitly specified, for example, machinery breakdown.

How does ISR differ from other insurance types?

It combines multiple coverages (property, interruption, theft, glass) under one flexible policy – unlike standard or liability-only insurance.

How can I obtain the right coverage?

Consult with an insurance broker who can help assess your risks, provide guidance, compare policy wordings and negotiate with insures on your behalf.

Commercial Landlord Insurance Broker *

Commercial landlords require insurance that’s specifically designed for commercial properties, rather than standard insurance policies. As an experienced commercial landlord insurance broker, Smart Business Insurance helps landlords manage risk, protect their income, and secure cover that’s appropriate for their property and leasing arrangements.

Written by Mark Vanzo
Managing Director of Smart Business Insurance
Last updated September 2026.

What is Commercial Landlord Insurance? *

Commercial landlord insurance protects owners of commercial properties against the risks that come with leasing business premises. It’s commonly arranged by investors and landlords who lease offices, warehouses, retail spaces, or other commercial buildings to tenants.

This type of insurance helps protect landlords from financial loss caused by damage to the building, interruption to rental income, and certain liabilities that can arise from owning a commercial property. Without appropriate cover in place, landlords may be exposed to significant out-of-pocket costs following events such as fire, storm damage, malicious damage, or a tenant-related incident.

Commercial landlord insurance is usually made up of a combination of covers. A property insurance policy forms the foundation, covering the building structure and loss of rent due to perils such as fire, storm and other insured risks. Some policies may include liability or in some instances a separate liability policy protecting against tenant and third-party injury may be required. Landlords can choose to add on other coverage based on their needs, such flood, glass or other risks.

Building Protection

Covers repair or replacement costs if the physical structure suffers damage from insured events, including but not limited to fire, storm, impact by vehicle and malicious damage.

Loss of Rental Income

Helps compensate for lost rent if the property becomes uninhabitable due to an insured event. It can also cover outgoings which are passed onto the tenant such as land tax and insurance.

Liability Safeguards

Provides support if a third party is injured on the property and a claim is made against you. For example, someone trips and hurts themselves at the premise and it was due to the property not being properly maintained. As the property owner, this exposure can fall on you. Liability protection assists in safeguarding you against this risk.

What Does Commercial Landlord Insurance Cover? *

Commercial landlord insurance covers:

Physical building damage caused by insured perils
Property owner contents damage
Loss of rental income from property damage
Costs associated with third-party injury or property damage
Equipment and signage
Landlord machinery breakdown (for example, aircon units)
Glass replacement

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How Smart Can Help with Your Commercial Landlord Insurance *

Smart Business Insurance is a commercial landlord insurance broker that works with landlords to understand the real risks associated with their properties. By assessing your exposures and comparing policies from multiple insurers, our team helps you secure insurance that’s fit for purpose. We take the time to explain how cover works, so you can make confident decisions without wasting time or paying for the wrong protection.

Commercial landlord insurance can be complex, as every property comes with its own set of risk exposures. Smart Business Insurance helps landlords understand these differences, explaining key policy terms and considerations so you have the information needed to make informed decisions.

As your property portfolio or tenant mix changes, Smart Business Insurance can also assist with ongoing policy reviews and provide support throughout the claims process. From navigating insurer requirements to managing documentation, our team is there to help make the process more straightforward.

Frequently Asked Questions

What is Included in Commercial Landlord Insurance?

Commercial landlord insurance covers buildings, fixtures, loss of rent, and liability components. Common add-ons include machinery breakdown, glass and signage.

Do I Need Commercial Landlord Insurance if I Already Have Property Insurance?

Commercial landlord insurance is a type of property insurance specifically designed for commercial properties. If you already have a property insurance policy in place, it’s important to ensure the policy reflects the fact the building is leased for commercial use and accounts for risks associated with commercial tenants.

How are Premiums Calculated?

Premiums for commercial landlord insurance are determined based on a number of factors including, property construction, tenant activities, building replacement value and rent generated from the property. The higher risk tenant, the higher the policy premium. For example, a manufacturing business will generate higher premiums than an office based tenant.

Can I Insure Multiple Properties Under One Policy?

You can insure multiple properties under one commercial landlord policy, either through business pack insurance or ISR insurance. Business Pack Insurance is popular with commercial landlords with a few properties worth $5 million or less, while ISR is popular with landlords with combined property values of over $10 million. In between $5 million and $10 million either business insurance pack or ISR may apply, depending on the properties involved. An insurance broker can help assess these factors and structure cover that aligns with the scale and complexity of the portfolio.

What Does Loss of Rent Cover?

Loss of rent cover provides protection if rental income is reduced or suspended following an insured event, such as fire, storm, or other events defined in the policy. If the premises become unfit for occupation, the policy can reimburse lost rental income while repairs are carried out, subject to policy terms.

Is Commercial Landlord Insurance Compulsory in Australia?

No Commercial Landlord insurance is not compulsory. However, as a minimum it is recommended the property owner take out coverage for the Building and Property Owner Public Liability.

Who Is Responsible for Insurance — the Commercial Landlord or the Tenant?

Both are responsible. The Commercial Landlord to cover the building and any contents they own within the building and the tenant to cover their own business interests including Contents, Stock, Business Interruption, Theft and Glass (if it is a requirement of the lease).

Does Commercial Landlord Insurance Cover Tenant Damage?

Yes. Commercial Landlord Policies, under the Building Section, typically cover damage caused by the tenant, including if the tenant vacates and leaves the building in a state of disrepair.Check specific policy wording to ensure this applies.

Does Commercial Landlord Insurance Cover Tenant Default or Unpaid Rent?

Most Commercial Landlord Business Pack policies do not cover Tenant Default or Unpaid Rent. We are only 1 of a few insurers in Australia who offer this cover.

What Happens to My Insurance if the Commercial Property Is Vacant Between Tenants?

Many Commercial Landlord Policies allow for the property to be vacant up to 90 days. If the property is to be vacant beyond 90 days the Landlord needs to advise their insurer/broker. The insurer may decide they will extend cover during the insurance period if the property is vacant and impose a higher excess for any Property Damage or Glass claims. If the current insurer will not extend cover, there are several insurers who specialise in Vacant Property Cover. An insurer broker can often assist.

Does Commercial Landlord Insurance Cover Flood, Storm and Bushfire Damage?

Many Commercial Landlord policies in Australia will automatically include Storm and Bushfire damage. Flood cover typically needs to be added and agreed to by the insurer.

There is a caveat to insurers offering cover for flood and bushfire damage. If your commercial property is in a flood or bushfire prone area insurers may apply an exclusion. It’s important you check policy wording or ask your insurance broker regarding any exclusions when purchasing a property , taking out cover and/or renewing a policy.

How Much Should I Insure My Commercial Building For?

You should insure the building for full replacement cost (i.e. what it would cost you to rebuild the same type of building again). The standard Commercial Landlord Policies will have additional coverage for Removal of Debris (typically $100,000 or 20% or the building replacement value) and professional costs.

With the more complex Commercial Landlord Insurers this would need to be allowed for in the building sum insured.

Are Tenant Fit-Outs and Improvements Covered by the Landlord’s Insurance?

No, the tenant needs to insure their own fit-outs and improvements.

Can a Commercial Landlord Pass Insurance Costs on to the Tenant?

Most Commercial Landlords do pass on the cost of the insurance to their tenants. This would be reflected in the lease agreement.

Do I Need Separate Commercial Landlord Insurance if the Property Is Strata Titled?

Yes, a Strata Policy will only cover the costs to replace the building and Public LIability for the Common Areas, such as shared driveways or carparks.