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Commercial Property Insurance protects your business premises and its contents from fire, water damage, burglary, vandalism, and more.
This type of insurance is also formally known as “Industrial All Risks Insurance”, or “Property All Risks Insurance”. It is absolutely essential for business owners. It protects your property, equipment, inventory, and other contents stored at your business. Many common risks like fire, theft, vandalism, burst pipes, explosions, and more can be covered.
What does Commercial Property Insurance cover?
Commercial Property Insurance protects the contents of your business premises. Examples of what’s covered:
- Business equipment (e.g. machines, computers, etc.)
- Building structure
- Fixtures and fittings
- Personal belongings
- Exterior signs
- Fences and landscaping
- Important documents
Commercial property insurance typically covers damage from the following sources:
- Fire & Lightning
- Burst pipes
- Optional extensions: impact damage to property (e.g. from vehicles), riots, strikes, floods, earthquakes, boiler explosions and more.
What's an example of a Commercial Property Insurance claim?
Let’s say you run a manufacturing business. One day, a massive explosion occurs. The explosion destroys significant amounts of your factory. Your building structure is heavily damaged. Your expensive equipment is now in pieces. Your inventory that was earmarked for sale is completely annihilated. You’re racked with anxiety, and worried about how you’re going to pay to repair everything. Let’s look at some of the expenses that Commercial Property Insurance would cover, to help you get back on your feet ASAP:
|Collapsed roof||Covered||Policy will pay for new roof to be constructed|
|Collapsed walls||Covered||Policy will pay for new walls to be built|
|Destroyed factory equipment and machinery||Covered||Policy will pay for equipment and machinery to be replaced|
|Destroyed stock & inventory||Covered||Policy will pay for value of destroyed stock & inventory|
|Burnt-out office areas, factory floor, warehouse space||Covered||Policy will pay for damaged areas to be restored to original condition|
|Destroyed miscellaneous items: computers, cupboards, shelves, tables, chairs, employee’s belongings etc.||Covered||Policy will pay for damaged items to be replaced|
Do I need Commercial Property Insurance?
Yes, definitely! This type of insurance is one of the most common policies that SMEs will have. As long as you run your business in any kind of commercial space, you need protection for the property, and the stuff you own.
Top 5 reasons why SME owners buy Commercial Property Insurance:
- You don’t want to potentially pay millions of dollars to repair the property, and replace inventory & equipment, if they get damaged somehow
- Your landlord requires you to have Property Insurance as part of your lease
- Your bank requires you to have Property Insurance as part of your mortgage
- You store high-value items inside your property, like stocks/inventory, machinery, and equipment
- You store goods that belong to someone else (e.g. clients) inside your business property
How much Commercial Property Insurance do I need?
You should consider purchasing an amount equal to:
1. The approximate re-construction cost of your commercial property, PLUS
2. The approximate replacement cost of all the contents you own in the commercial property.
Remember that under-insurance will significantly reduce your insurance payout in the event of a claim. When in doubt, it’s advisable to purchase slightly more than what you think is necessary so that you get a full payout when you need it most.
If you’d like help determining how much coverage is best for your company, speak with our friendly industry experts now!
What other types of insurance should I have, besides Commercial Property Insurance?
- Coverage for injuries to employees: To cover this, you’ll need Work Injury Compensation Insurance.
- Coverage for property damage/injuries to third-parties: To cover injuries to third-parties like customers, or members of the public, you’ll need Public Liability Insurance.
- Coverage for lost income while your property is destroyed: Provides compensation for lost revenue if your business premises gets damaged and you can’t run your company. You’ll need Business Interruption Insurance to cover this.
How much does Commercial Property Insurance cost?
Office Properties: From $12/month.
F&B Properties: From $18/month.
Retail Properties: From $18/month.
Beauty Industry (e.g Spa/Salon) Properties: From $15/month.
Manufacturing/Industrial Properties: From $30/month.
With Provide, you save up to 25% on your premiums. Our digital operating model creates lower overheads, and we pass every dollar saved back to our clients.