Understanding Construction Insurance for Your Building Projects
Brad Smith November 12, 2024
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Commercial Property Insurance
Keep your business property, belongings and profits safe from the unexpected.
Your premises are one of your biggest business assets. A bad day shouldn’t be a business-ending one with commercial property insurance from VIM Cover, which covers your building, contents, stock and equipment from events such as fire, storm, theft and water damage. We are independent brokers and can shop around for cover from Australia’s top insurers to help you get the right cover for your property and budget.
We help you make sure:
- Your property is protected – building, fit-out, contents and stock covered against insured events – you're not paying to rebuild out of pocket.
- Your business continues to operate — business interruption cover helps replace lost income while you're getting back on your feet.
- Your cover actually fits - we customise commercial property cover to your premises, industry and risk, not a one-size-fits-all cover.
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Get a Commercial Property Insurance Quote
Our Insurers
We are independent and compare cover from Australia’s major insurers to help you get the right cover.
The COVER
What is commercial property insurance?
Commercial property insurance is a type of cover that protects the physical property your business owns or is responsible for, typically the commercial building itself, along with the contents, stock and equipment within the building. When a fire, storm, break-in or burst pipe damages your premises, the policy can help cover the cost of repairing, rebuilding or replacing the damage.
This cover is known by a number of names, including commercial property insurance, commercial building insurance, or insurance on a commercial building, and it all basically means the same thing: financial coverage for your property and its contents. Most policies can be extended to include lost income (business interruption) and your legal liability to others, so one policy can do a lot of work.
The cover is subject to the terms, conditions, limits and exclusions of your selected policy.
The Risks
Common risks commercial properties face
The events we help protect against, every day:
- Fire and smoke – electrical faults, kitchens, neighbouring premises or bushfire
- Storm and water damage – burst pipes, roof damage, flooding from heavy rain
- Theft and vandalism – break-ins, stolen stock and equipment, malicious damage
- Accidental damage — an unexpected knock, spill or breakage on site
- Impact — vehicles, falling trees or objects hitting the building
- Equipment breakdown — when critical plant or machinery suddenly breaks down
One event can result in weeks of lost business, which is why property and business interruption cover go hand in hand.
What's Included
What does commercial property insurance cover?
We tailor your commercial property coverage to your business, as each is unique. A typical commercial property policy can include:
The physical fabric of your commercial building – walls, roof, floors, permanent fixtures and fittings. Covers repair/rebuild following an insured event.
Furniture, equipment, tools, fit-out and trading stock. Repaired or replaced if damaged, lost or stolen following an insured event.
Business Interruption
This can help replace lost income and ongoing expenses such as wages, rent and loan repayments if you are unable to trade after an insured event.
Public Liability
If a third party is injured or their property is damaged as a result of your business or premises – usually included with property cover.
Glass
Internal and external glass, shopfronts and signage — repaired or replaced due to accidental damage.
Machinery & Equipment Breakdown
Sudden mechanical or electrical breakdown of plant and equipment your business relies on.
What's not covered?
Every policy has exclusions, and knowing them upfront avoids nasty surprises. Commercial property insurance typically won’t cover things like:
Insurance is for sudden, unexpected events, not maintenance
Lack of maintenance or poor repairs
Faulty design or workmanship
Faulty design or workmanship
Unoccupied Premises left vacant beyond the period your policy allows (often 60–90 days)
Flood, accidental damage or machinery breakdown may be optional
War, terrorism and illegal activities
War, terrorism and illegal activities
Cover is subject to policy terms, conditions, limits and exclusions and is available from different insurers. Exclusions and limits differ from insurer to insurer — please refer to the Product Disclosure Statement (PDS) for your policy. When in doubt, ask us before you purchase whether a risk is covered.
Tailor It
Optional add-ons
Customise your commercial property insurance policy to fit your risk:
Theft & money
Cash on premises and losses from break-ins
Flood
Cover for flood events (usually optional; worth reviewing by location)
Accidental damage
For damage that is unexpected and unintentional and not otherwise covered
Portable & valuable items
Tools and equipment used off-site
Loss of rent / landlord cover
For property owners who rent out their premises
Cyber
Protection if your business systems are breached or held to ransom
Who We Cover
Commercial property insurance for all types of commercial properties
From offices to warehouses, we arrange property insurance for commercial property of every kind:
- Offices & consulting rooms
- Retail shops & showrooms
- Warehouses & storage
- Factories & industrial units
- Strata & multi-tenant complexes
- Landlord & commercial property owners
- Cafés, restaurants & hospitality venues
- Medical & healthcare premises
Our Expertise
Landlord or tenant - who insures what?
A frequent question we receive from commercial property owners is who is responsible for insuring what. The quick answer: it depends on your lease.
As a general guide:
| Item | Usually the owner / landlord | Usually the tenant |
|---|---|---|
| The building & structure | ✓ | |
| Landlord's fixtures & fittings | ✓ | |
| Loss of rental income | ✓ | |
| Tenant's fit-out & improvements | (check lease) | ✓ |
| Stock, contents & equipment | ✓ | |
| Tenant's business interruption | ✓ | |
| Public liability | For common / owner areas | For their operations |
The cover is ultimately determined by your lease, whether it’s a net lease or a gross lease. Commercial property owners insurance (building plus loss of rent) is typically the responsibility of the commercial building owner, while the tenant(s) will have their own stock, fit-out and liability insurance. Not certain where the line is in your lease? This is what our brokers do for you.
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Independent brokers
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PRICING
How much does commercial property insurance cost?
There is no fixed price – premiums are based on your property and risk. Premiums are typically in these ranges, as a general rule:
- Small suburban office or shop: ~$650 – $1,500
- Larger retail / mixed premises: ~$1,500 – $5,000
- Warehouse or light industrial: ~$5,000 – $9,000+
- Large or complex properties: $10,000+
These are indicative only and will vary with your circumstances. The main things that move your premium:
- Location — flood, storm, bushfire and crime exposure for your area
- Construction type — brick vs steel vs timber, age and condition
- Sums insured — the values set for building, contents, stock and business interruption
- Occupancy — owner-occupied, tenanted, or partly vacant
- Risk controls — alarms, sprinklers, security and fire protection
- Claims history — your recent claims history
We compare insurers, which means we can sometimes get better value than going direct to one insurer.
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Independent brokers
Support at claim time
Why VIM Cover
Why businesses choose VIM Cover
Protecting your commercial property is challenging enough without having to second-guess your insurance.
Whether you own a single shopfront or a portfolio of commercial buildings, the right cover will safeguard your premises, your contents and your income.
We are independent insurance brokers and we don’t rely on one insurer or one product. We review the commercial property insurance options offered by different insurance companies and explain the differences, as the lowest-cost policy is not always the best. It will depend on your building, its construction, how it’s used and who occupies it.
We don’t think insurance should be complicated. We’ll tell you what is covered, what is optional, what is not covered and what insurers need to know, so you can make informed decisions without having to read the policy wording.
- No hidden policies or surprises
- Real-world advice for your premises
- Real support from quote through to claim
- Australia-wide cover
5/5 from Australian business owners
Independent brokers
Support at claim time
“My experience with VIM Cover was nothing but professional”
– Laura Evans
Tailored To You
What is the right amount of commercial property insurance?
Most people don’t realise that getting the sum insured right is important. If you underinsure your commercial building, you may find yourself in a situation where you are caught by an “average” (co-insurance) clause, even if you only have a partial loss.
A few pointers:
- Insure for replacement value, not market value. You’re covering the cost to rebuild or replace, including demolition, debris removal, professional fees and bringing the building up to current codes — not what the property would sell for.
- Review your sums insured each year. Construction and material costs change; a number that was established three years ago is frequently outdated.
- Have a professional valuation for larger or older buildings and maintain an asset register for contents and stock.
- Include business interruption based on your actual turnover and the time it would take to recover.
Our brokers can stress-test your numbers to ensure you’re not paying too much – or too little.
Related Cover
Cover that works well alongside commercial property
Commercial property insurance is often just one part of protecting your business. Ask us about the following cover:
Public Liability Insurance, Business Insurance Packages, Landlord Insurance, Cyber Insurance
Reviews
Trusted by Australian businesses
We are responsive, easy to deal with and results-oriented, which is why businesses select VIM Cover. We do our best to get the right cover at the right price, and we support it when it matters most.
FAQ
Frequently asked questions
What is commercial property insurance?
Cover that protects the physical assets your business owns or is responsible for, most often the commercial building, contents, stock and equipment, from insured events such as fire, storm, theft and water damage. It can be extended to include lost income and public liability.
Do you have to have commercial property insurance in Australia?
It is not a legal requirement, but it is often a requirement of a commercial mortgage or lease, and without it you are leaving your most valuable assets vulnerable. Workers compensation, on the other hand, is required when you have employees.
What's the difference between commercial building insurance and contents cover?
Building cover insures the building itself, including walls, roof, and permanent fixtures. Contents cover protects furniture, equipment, fit-out and stock. Many businesses require both; landlords may only insure the building.
Who is responsible for paying the insurance, the landlord or the tenant?
This is subject to the terms of the lease. Typically, the owner will insure the building and loss of rent, and the tenant will insure their stock, fit-out and liability. We can assist you in reading your lease and discussing the appropriate cover.
What is the right amount of commercial property insurance?
Enough to completely rebuild or replace your property at today’s costs — including debris removal, professional fees and code upgrades – rather than its market value. If you have an “average” clause, you may end up with a lower payout when you are underinsured, so it’s important to get the sums insured correct.
What isn't covered?
Typically wear and tear, gradual deterioration, poor maintenance, faulty workmanship and long-term vacant premises. Certain hazards, such as flood or accidental damage, may be available as extras. Always check the PDS.
How much does commercial property insurance cost?
Premiums can range from approximately $650 per year for a small office to thousands of dollars for warehouses and larger properties, depending on the type of property, location, sums insured and risk. We compare insurers and can often find better value.
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Protect your premises with VIM Cover
When you have a few details on hand, it’s easy to get a commercial property insurance quote:
- Business name and ABN
- Address of property and type of construction (brick, steel, timber)
- Whether it is owner-occupied, tenanted or vacant
- Sums insured — building, contents and stock
- Security and fire protection (alarms, sprinklers, etc.)
- Annual turnover (if you require business interruption cover)
- Any claims in the past five years
Don’t have everything? No worries — begin the enquiry and we will fill the gaps.
Have clear guidance, customised options and cover structured from the outset.
5/5 from Australian business owners
Independent brokers
Support at claim time