What is Commercial Property Insurance?
Commercial Property Insurance, also known as Building Insurance, protects non-residential properties against loss or damage. While each commercial property is unique, all are vulnerable to damage, loss, and theft. This type of insurance is often included in tailored Business Packages but can also be part of Strata Insurance, Landlords Insurance, or Industrial Special Risks policies.
What Does Commercial Property Insurance Cover?
A typical commercial property insurance covers:
- Damage from floods, fire, or earthquakes
- Theft
- Malicious and accidental damage
- Loss of rent
- Personal injury/property damage
- Machinery breakdown.
Client Example
The Insured owns a commercial building which is leased to several businesses. A fire breaks out, severely damaging the property and rendering it uninhabitable. Under its Commercial Property Insurance policy, the Insured was able to claim $500,000 for the building repairs, $100,000 for the loss of rental income while the repairs were undertaken, and $50,000 to replace the damaged climate control system (under the machinery breakdown section of the policy).
