Business Insurance
For many commercial property owners their bricks and mortar asset will be the most valuable asset they will ever own and can be a source of significant stress when loss or damage occurs.
Commercial Landlord Insurance provides a range of additional benefits tailored to the properties that are typically insured under that policy and can cover an individual stand-alone premises of a commercial unit forming part of a Body Corporate of Strata complex.
Commercial landlord insurance policies are tailored to suit small to medium sized commercial property owners (including Self-Managed Super Funds) The policy provides broad financial protection against a variety of risks.
In addition to damage to the property, a commercial landlord policy also provides cover for loss of income, Rent Default, Glass, Tax Audit, legal costs for OHS breaches, Property owners liability & machinery breakdown. Some of these coverage sections are customisable so that the Insured has the option to choose if they wish to take the covers. We can assist you in assessing your business needs and structuring your policy as required.
Underinsurance/Average/Co-insurance
Underinsurance is a significant issue in Australia. We recommend you review your sums insured on a regular basis, at least every year to ensure they are adequate. Should you be underinsured at the time you make a claim, a significant penalty may apply.
Most property insurance policies include an average/co-insurance clause, which means you must insure for the full replacement value of the property you are insuring. If you under insure, the insurance provider may reduce any claim payments in proportion to the amount you are under insured.
For example:
- Full replacement value of your property is $500,000.
- Sum Insured under your insurance policy is $300,000.
- You are therefore insuring 60% and self-insuring 40% of your property.
- If you make a claim for, say $100,000 your insurance provider could apply this clause and pay only $60,000 and you would have to bear $40,000 yourself.
We therefore recommend you regularly obtain a professional valuation for the rebuild and associated costs from a quantity surveyor or suitably qualified professional for the building and regularly review your asset schedule for your contents.
Claim example
Property Section and Liability Section – Water Damage
The insured leased premises in which they operated an office/studio. They had been in the building for over 10 years and had installed their own fitout including flooring, workstations, breakout spaces and meeting rooms. Part of the fitout included a hot water system located in the kitchen. Over a long weekend the system burst and hot water began to spray out of the tank quite forcefully. The water had plenty of time to spread through approximately half of the office space and seep through the floor and damage the level below them.
The claim for damage to the insureds contents and fitout was claimable under the property section of their Office Pack Insurance policy.
The occupiers on the level below took action against the insured to recover the costs of the damage to their belongings. This part of the claim was covered by the Public Liability section of the policy.
Building your
At Planned Cover, we offer risk cover tailored and planned for your profession. Through a full circle of support, we offer industry leading advice, insurance and representation for profession-specific protection in the built environment industry.
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