Commercial Property

What is it?

Commercial Property insurance is designed to protect a business's physical assets against loss or damage caused by insured events such as fire, storm, theft, malicious damage, impact, accidental damage and other defined risks. In Australia, this cover is commonly arranged under a Business Pack policy for small to medium businesses, or under an Industrial Special Risks (ISR) policy for larger or more complex businesses. The purpose is to help ensure that, following a major loss, the business has the financial support to repair or replace damaged property and resume operations as quickly as possible.

Who should consider it?

Any Australian business that owns, leases, occupies or is responsible for physical property or business assets — including those with buildings, warehouses, factories, workshops, offices or retail premises; stock, contents, plant, machinery, tools, fixtures or equipment; tenanted premises with lease-imposed insurance obligations; goods stored across multiple locations or in transit; specialist machinery or stock critical to trading; or exposure to natural catastrophe risks such as bushfire, flood, cyclone, storm or hail. It is particularly important where property damage would materially impact operations, cash flow or the ability to continue trading.

What can it cover?

• Buildings — owned business premises, warehouses, factories, offices and other commercial buildings
• Contents and business assets — office contents, fixtures, fittings, tools, plant, machinery, equipment and furniture
• Stock — raw materials, finished goods, goods held for sale, customer goods, or stock held at the premises
• Fire and defined events — fire, lightning, explosion, storm, impact, malicious damage and theft, subject to wording
• Accidental damage — sudden and unforeseen accidental physical loss or damage, where extended
• Theft and burglary — property stolen following forcible or violent entry, subject to security requirements
• Glass — internal and external glass, signage, window displays and related damage
• Machinery breakdown — sudden and unforeseen breakdown of insured machinery, often as an optional extension
• Electronic equipment — computers, servers, point-of-sale systems and other electronic equipment
• Money — business money held on premises, in transit or at an employee's home, subject to limits
• Transit or property temporarily removed — business property temporarily away from the insured premises
• Business Interruption — loss of gross profit, increased costs of working, wages and rent following insured damage
• Natural catastrophe exposures — flood, cyclone, bushfire, storm surge, earthquake or hail (subject to insurer, location and policy terms)

Cover features will vary by insurer and policy wording. Full content for each risk solution will be added — please contact MJJ Risk to discuss the specifics.