Commercial Property Owners Insurance
What is Commercial Property Owner’s Insurance?
A Commercial Property Owner’s insurance package is designed to protect the property from unforeseen events, and also to protect the property owner from the financial burden of such events.
Who should insure for Commercial Property Owner’s Insurance?
Commercial Property Insurance is designed to protect Property owners of buildings where they are occupied by commercial tenants.
What does Commercial Property Owner’s Insurance cover?
A Commercial Property Owner’s Insurance policy can cover the below:
Building & Contents
Repair and replacement after insured events
Theft
Cover for your items where there has been a theft, or attempted theft
Liability
Cover for claims brought against you for third party property damage or third party personal Injury
Machinery Breadkown
Covers the costs to repair or replace items with a motor that have broken down; such as aircons. Please note that depending on your tenancy agreement, the tenant may be responsible for this.
Loss of Rent/Business Interruption
Protects your rental income if there was damage to your property which deemed your property uninhabitable and the tenants were no longer obligated to pay rent
Glass
Cover for breakage to internal and external glass. Please note that depending on your tenancy agreement, the tenant may be responsible for this.
Does my tenancy listing impact my insurance premiums?
Your tenants are one of the biggest factors that will affect your insurance policy. If the occupancy has low risk tenants, such as an office, the premium is going to be quite low. If your tenants are deemed high risk, such as a wooden furniture manufacturing business, the premium is going to be high. As we are insuring the building for events such as fire, tenants that have a particularly high fire risk is going to attract higher insurance premiums.
Can I insure my rental income?
Under a Commercial Property Owner’s Insurance policy, you can opt to protect your rental income if your property suffered an unforeseen event which deemed your property uninhabitable, and your tenants were no longer contractually obligated to pay rent.
What events would my rental income be insured?
Under your insurance policy, this would be called “Business Interruption Insurance”. In layman’s terms, it’s more commonly referred to as Loss of Rent. If an event occurred which deemed your property uninhabitable by the insurer, the rental income that your tenant is no longer obligated to pay can be covered by your insurance policy.
Events that would prohibit your tenant from occupying your property could be a result from building damage from fire, weather events, malicious damage, accidental damage, impact, or escape of liquid. This is not an exhaustive list, however these are a list of the most common occurrences.
How long should I insure my rental income for?
Under the Business Interruption section, you have the option to insure for an Indemnity period of your choice. When choosing your indemnity period, you must always consider the worst case scenario. If your property was to burn down, and you had to rebuild it, how long would it take to accomplish this? You must also factor in unexpected delays such as council approvals, material, and labour shortages. All of these factors could extend the duration to rebuild your property. 18 months is usually the minimum recommended period.
When should I update my insurance policy when there has been a tenancy change?
As soon as you have confirmed a new tenant that differs to the previous tenant listed on your insurance policy, you must notify your broker or insurer immediately as there could be changes to the conditions of your insurance policy.
Do I insure my gross annual rentals including GST?
On your insurance policy, you should include GST on your annual rental figure.
Does a Commercial Property Owner’s Insurance policy cover flood?
Flood insurance is not automatically included under a Commercial Property Owners Insurance policy. You have to request this from the insurer.
Does a Commercial Property Owner need Public Liability Insurance?
A Commercial Landlord has an obligation to their tenants to provide a safe, secure property. Failure to do so could potentially see persons injured. For example, a retail store may have a damaged section of flooring that is protruding near the front entry of the store which the commercial landlord has been informed about, yet has not rectified. This is a tripping hazard. The potential for a customer to be injured because of this is high. In this instance, the commercial landlord could be liable for the associated costs if a customer were to suffer an injury. This is because the commercial landlord had become aware of the hazard, yet had neglected to rectify it in a timely manner.
Public Liability Insurance, or more commonly referred to as “Property Owner’s Liability” in this instance, is crucial to protect the property owner from third party propery damage, or personal injury claims brought against them. This can include the tenants, or the tenants clients and customers that enter the premise.
What is not covered under a Commercial Property Owner’s Insurance policy?
The standard exclusions for a Commercial Property Owner’s Insurance policy can include the below:
Damage to the property that happened prior to the insurance being taken out
Flood cover is a standard exclusion, unless otherwise added and approved by the insurer
Wear, tear, deterioration
Maintenance issues
Actions of the Sea
Cover where cover sections have not been selected; for example – you cannot claim on glass breakage if you did not select to insure for glass cover
How much should I insure my Commercial Building for?
It is recommended that you seek professional advice from a builder, architect, surveryer or any other suitability qualified professional to determine an adequate building sum insured.
What happens if I under insure my building to reduce my insurance premiums?
As your Insurance premium is heavily weighted on how much your building is insured for, it could be tempting to insure for less, so your premium is lower. This is a particularly risky move, because unlike home insurance, commercial insurance policies have a “co-insurance” clause. As such, if you choose to insure for a lower amount than the true figure to rebuild your property, you could find yourself having to contribute to the cost to rebuild the property. A co-insurance clause is essentially a penalty for not insuring for an adequate value. Usually, you would need to be insured for at least 80% of the claim value before they start reducing your claim payment.
How can Morgan Insurance Brokers help?
Morgan Insurance Brokers are a team of professional Insurance Specialists that deal in Commercial Property Owner’s Insurance on a daily basis. This means that we are well versed with the risks that you are exposed to as a property owner. We are able to approach our panel of approved insurers to source and tailor an insurance package that is going to protect your property, and rental income for the years ahead.
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What our clients say
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Lauren was awesome helping us to sort out our insurance incredibly quickly. Called her urgently in the morning as we needed the insurance by 5pm on the same day and she had organised a series of quotes and recommendations within a couple of hours. Would highly recommend her!
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I have dealt with Lauren from MIB insurance for the last 3 years. Lauren’s attention to detail is incredible and she goes above and beyond in finding the best insurance cover for our business. I can not recommend Lauren highly enough. She has recently insured our second business as well. I recommend MIB to all of my business colleagues.
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OUR PROCESS
Get a Commercial Property Insurance quote in just 3 easy steps
Let us do what we do best, so you can get back to doing what you do best. Have trust knowing that we have the knowledge and expertise to provide you with insurance that’s going to protect your assets.
01
Tell us about yourself
Let us get to know you and your business.
02
Choose a tailored policy
Review your personalised and tailored insurance program.
03
Get Insured
Place cover knowing that you’re insured with an approved provider and a dedicated broker on your side.
Are my subcontractors covered by my insurance?
Will my Public Liability Insurance cover my subcontractor?
A Public Liability Insurance policy will not extend to cover the subcontractor’s for their negligence and as such, they will be required to hold their own Public Liability Insurance policy.
What is a Subcontractor?
A Subcontractor can be a sole trader, partnership, or business that is engaged to perform part, or all of the works of another’s contract.
Examples of a Subcontractor
- A builder has a contract with an individual to build their house. The builder decides that the painting works is best left to a qualified painter. The builder then engages a painter for the works and then pays them accordingly.
- An accountant may subcontract out their administration works to an individual or company to free up their time
Are subcontractors considered employees?
With regards to Public Liability Insurance, a subcontractor is not considered as an employee of the business.
What is Public Liability Insurance?
Public Liability Insurance will protect your business from claims brought against you for negligence by third parties for personal injury, property damage, and advertising liability.
Do Subcontractor’s need their own Public Liability Insurance?
It is always recommended that Subcontractor’s hold their own Public Liability Insurance when they are working for themselves, or contracting to other companies. Public Liability Insurance policies will not extend to a subcontractors negligence.
What happens if a Subcontractor causes damage, or injures someone on my site?
Subcontractor’s will need their own Public Liability Insurance to ensure that if the unexpected occurred, such as someone getting injured, or damage occurring, that they are financially protected from the costs associated with a Public Liability Claim.
If I engage a subcontractor, and a claim is brought against me for their negligence, am I covered?
It is important to disclose to your insurer if you are using subcontractors as part of your business. Ensuring that your insurance company are aware of this, your policy can respond to the vicarious liability and costs associated with claims brought against you due to your subcontractors negligence.
What is Vicarious Liability Insurance?
Vicarious liability insurance is when the principal is legally responsible for the acts of their employees, contractors, and other workers whilst undertaking their job.
Does it cost more to note subcontractors on your insurance policy?
Your Public Liability Insurance policy premium is based off many factors. The amount that you pay to your subcontractors each year is a factor in rating the premium. Some insurers have thresholds on the percentage that you can use. Insurers can decline to offer you a quote if the amount you pay subcontractors is higher than their allowable limits.
Our team of experienced Insurance Brokers are driven by customer satisfaction and are dedicated to each client, no matter the size. Contact us today for a quick quote.
What is Public Liability Insurance?
What is Public Liability Insurance?
Public Liability Insurance covers your legal liability to third parties for personal injury or property damage arising from your insured business activities.
Public Liability Insurance is designed to provide you with confidence to trade without having to worry about the burden and financial impact if injury, or damage was to occur outside of your control, in which you were found negligent.
No doubt if you’re in business for yourself, you’ve heard of Public Liability Insurance. Public Liability Insurance can protect all businesses, from sole traders, to small businesses, to ASX listed companies. No matter the size, no matter the industry, Public Liability Insurance is going to offer a level of protection for your business that you need. Without it, you could see yourself fronting the costs incurred if a claim were to be brought against you.
In this post, we’ll cover a few examples of how Public Liability Insurance can protect you, and how you can benefit from engaging Morgan Insurance Brokers to source cover that’s right for you.
Why is Public Liability Insurance Important?
To protect you from unexpected legal costs that could arise from Public Liability Claims against your business, it is important that you protect your business with a Public Liability Insurance policy that will cover all of your day-to-day business activities. Although usually not compulsory, businesses should consider safeguarding their financial future with an adequate Public Liability Insurance policy. We all know how expensive solicitors are, so imagine having to pay for legal representation to respond to the claim brought against you, whilst also having to potentially reimburse the claimant for their legal fees incurred, and compensation claim as well.
Between 2017-2021, there has been $2.31 Billion Dollars paid out in Public Liability claims in Australia. This highlights the importance of ensuring your business is protected with an adequate Public Liability Insurance policy.
Examples of Public Liability claims
Property Damage
ABC Lawnmowing is engaged to cut John Smith’s grass. A stone has flung up under the mower and damaged John Smith’s glass. ABC Lawnmowing is deemed liable for these damages and their Public Liability Insurance policy will pay for the repair of the glass.
Slip and Fall
Jane Doe has entered XYZ Supermarket and has slipped and injured herself on a puddle of water from a leaking freezer. XYZ Supermarket had known about the puddle but did not secure the area with appropriate signage to warn customers about water on the ground. XYZ Supermarket are found liable for Jane Doe’s medical expenses. XYZ Supermarket’s Public Liability Insurance policy will pay the legal and compensation costs in this instance.
Food Poisoning
Jack Jones visited his favourite buffet restaurant for dinner. A short time later, he came down with a bout of food poisoning. Jack Jones was unable to work for the follow days after, and also incurred medical costs. It was found that the buffet restaurant was liable for Jack Jones illness. The buffet restaurant engaged their Public Liability Insurance and the policy responded to the costs incurred.
Now we know how important insuring for Public Liability Insurance is for your business, so now is the perfect time to review your cover, or take out a new policy to protect yours, and your employees futures!
Not sure where to start? Contact Morgan Insurance Brokers for a tailored Public Liability Insurance policy for your needs. We do all the hard work, so you don’t have to. You’ll have faith knowing that we have your best interests at heart.
The Assurance of Insurance
The Assurance of Insurance
It is safe to say that Australians have had a hard time with it these past few years.
In the face of such uncertainty, we must pay the small cost of appropriate insurance, to protect ourselves from the far greater cost of being uninsured.
