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Liability Insurance

A Tradie’s Guide to Public Liability Insurance

Tradies and sub-contractors have a lot to digest and understand when it comes to insurance. From trade to trade, and tradie to tradie, the sheer amount of unique risks to deal with can feel overwhelming. That’s where insurance advisors come in, to set you up with appropriate cover for the risks you face.

In this guide we’ll dive into public liability insurance, one of the more important types of cover you can have to protect yourself and your business.

What is public liability insurance?

Public liability insurance provides protection for your business against allegations by a member of the public (someone not part of your business) relating to an injury or property damage in connection to your business activities.

This is important, because whether it’s fair or not, as a business owner you may be held accountable for injuries that people have when they come into contact with your business. This could be labourers, customers, or even the general public. It also has nothing to do with whether you have employees or not, so public liability insurance for sole traders can be just as critical as it is for a large companies.

How much Public liability insurance costs varies based on the quantity and quality of the cover. However, as with most insurance, you’ll be very glad to have it if you ever find yourself in the position of using it.

Are tradies required to have public liability insurance?

While there aren’t too many business types that require public liability coverage by law, certain trades are the exception. For example, electricians in Queensland are required to hold public liability insurance to meet licensing requirements.

Generally speaking, any subcontractors should have their own public liability insurance as well. We often hear cases where a subcontractor believes they’re covered by a builder’s insurance, only to find out on the prickly end that that isn’t the case. Unless there is a specific provision made in the builder’s insurance policy, subcontractors usually aren’t covered.

Also, it’s often a contractual requirement for subcontractors to have public liability insurance in order to work on a site. Contractual obligations are always something to check over, especially when it comes to insurance.

Some clients will also require contractors to have public liability insurance before even entering the premises. So, as you can see, it can be a wise move to make sure you hold appropriate public liability cover.

How can public liability insurance protect tradies?

It’s not out of the ordinary for third parties to experience slips, trips, or falls around job sites. All it takes is for a client or passer-by to trip over something and injure themselves for a public liability claim to occur.

It’s also not uncommon for an accident or unforeseen circumstance to occur and cause property damage. That could be on the job site itself, or to a neighbouring premise. Anything from a sheet blowing off a frame, to a burst pipe or struck conduit.

If someone is injured or has their property damaged, they may well decide to make a claim against your business. You can be subject to costly legal fees on top of the cost of rectifying the damage or injury. That’s where public liability insurance comes in, to help cover those fees and costs.

Having suitable public liability insurance, you can rest easy knowing you’re protected against costly claims arising from a wide variety of possible accidents.

What happens if you don’t have public liability insurance?

If someone is injured as a result of your work or worksite, depending on the nature and severity of the injury, you may be required to pay for their recovery, rehabilitation, and replace lost earnings. Also, there are often various legal fees associated with such an incident. It’s a similar story with property damage as well.

As you could imagine, this can all add up very quickly and lead to financial troubles. However, if you do have public liability insurance, your insurer will manage your claim and appoint a legal counsel to assist you. In the event you are found negligent, your insurance policy can cover legal expenses and the third party’s loss.

Every trade business is unique, and many have complex risks that are not covered by off-the-shelf policies. At EWIB, we promise to work closely with you, to understand your work, and help you find the most suitable insurance for your trade business.

Categories
Business Construction Insurance Insurance

Keeping your equipment and investment protected

Imagine this – you’ve just started your dream business and invested a significant amount of money in top-of-the-line equipment. Suddenly, one of your machines experiences equipment failure or gets damaged due to an accident. Without proper insurance coverage, you could end up with a hefty bill to repair or replace the equipment. It could also lead to a delay in your business and further drain on your finances.

Avoid unnecessary costs from equipment failure by implementing safety guidelines to prevent accidents and performing regular maintenance to keep your equipment in good condition. For greater security for both you and your business, get Plant & Equipment Insurance. 

In this article, we’ll discuss the following questions: 

What is Plant & Equipment insurance?

Plant & Equipment Insurance is designed to cover physical assets used in the operation of a business, such as vehicles and heavy machinery like cranes and forklifts. Although commonly associated with the construction industry, it can be helpful for different types of businesses and equipment. 

Think about these risks and make a list of any others you think are relevant to your business. This is an important step in making sure your risks as a venue are managed and will help inform the kind of insurance you need. Sitting down with an experienced Insurance Advisor can make this process more efficient and effective.

What do you need from your insurance provider?

How to get started?

To insure your equipment, you must have all the necessary documents ready to present. Remember to provide accurate details to the insurance provider so they can give you an accurate quote. This information may include, but is not limited to: 

  • Type of equipment 
  • Price or value 
  • Age (when it was first used and when it was purchased) 
  • Repairs and modifications 
  • History of claims 

When considering equipment insurance, prioritise which assets you want to insure based on their importance and value to your operations, then set up a budget accordingly. Expect heavy machinery to take the bulk of your budget. It’s also important to consider any specialised maintenance required to keep your equipment running smoothly. 

What needs to be covered?

The next step is to assess the risks associated with your equipment and evaluate the likelihood of these risks occurring. Then check with insurance providers if their policy covers these potential risks: 

  1. Accidental Damage – This covers your equipment’s repair or replacement costs in case of accidental damage caused by exposure to elements like fire, flood, and natural disasters. Damages due to human error could also be included. If you’re unsure, it’s best to confirm with your insurer. 
  1. Theft and Vandalism – Unfortunately, theft and vandalism are real business risks. Surveillance cameras and alarm systems are good preventative measures, but they can’t guarantee absolute protection. In an emergency, Plant & Equipment Insurance can step in to cover the loss or damage caused by malicious acts. 
  1. Equipment breakdown – Even the most reliable and well-oiled machinery can have a bad day. Equipment breakdown coverage can provide financial support for repairs or replacement for unexpected equipment failure, which is crucial during peak production periods. 
Plant & Equipment Insurance can cover costs of equipment failure and loss.

How do you choose the right insurance provider?

Once you have a clear idea of your insurance needs, you can start researching which insurance provider would be a good fit. Each insurance provider has their own sets of policies and coverage. Compare them and take note of the following: 

  • Do they cover repairs or replacements? 
  • Do they cover both? 
  • Are there coverage limits or exclusions? 
  • Are there premiums or policy deductibles? 
  • Additional coverage options? 
  • What is their usual claims process and timeline? 
  • What is the general feedback from customer reviews? 
  • Is the insurance provider in good standing financially or reputation-wise? 

When shopping for services, especially one as important as insurance, request quotes from multiple providers. Don’t be shy about sending emails, and as long as you have questions, keep asking them. Carefully view the fine print and take time to weigh your options so you can make an informed decision. 

You can learn more about how to properly review your insurance here.

Do you need help with insurance?

Accidents can happen no matter how many precautions you take, and equipment failure due to age or constant use is inevitable. Plant & Equipment Insurance acts as a safety net that keeps you protected from unexpected costs that can be incurred. It ultimately helps minimise negative financial impact, allowing you to recover and resume operations swiftly. 

Yes, going through different providers and policies to find the right one is hardly exciting. You’ll have to read tons of paperwork and put in the hours to ensure everything is covered. But there’s no need to stress because you don’t have to shop alone. We’re here to help. At East West Insurance Brokers, we’ll connect you to the top insurance providers in Australia and help you identify what best suits your business needs. Let’s work together to get you covered. Request a free consultation today! 

1800 809 132  | hello@ewib.com.au | www.ewib.com.au

Categories
Insurance

How to insure your hospitality business

Skilled baristas crafting delicious coffee, a common sight in the thriving hospitality industry in Australia insured against unforeseen incidents

Not sure where to start getting your business appropriately protected without breaking the bank? We get it. By its nature, hospitality is a diverse and varied sector and so too are the risks you face and the cover you may or may not need. As a result, insurance for hospitality businesses can be quite a jungle to navigate.

No matter what industry your business falls under, it’s crucial to get your insurance right. Throw in the curveballs of working with food and beverage, electrical equipment, and patrons and you could be up to your eyeballs in policies. That’s where an experienced Insurance Advisor can save you time and money. Let’s start by looking at some key risks you might face in the hospitality industry.

What are the most important risks to manage in a hospitality venue?

While the sector has a great deal of variety, and the scope of risks unsurprisingly wide, there are some common ones we come across. Many key risks relate to the likelihood of fires. Do you operate deep fryers in your venue? Do you have an extraction system, and how often is this cleaned and maintained? Does any of your equipment or fitout contain expanded polystyrene?

Another common risk to stay vigilant about is that of trip and fall hazards. Are your floors and thoroughfares kept clear? Is your flooring or stairways likely to contribute to an accident?

Think about these risks and make a list of any others you think are relevant to your business. This is an important step in making sure your risks as a venue are managed and will help inform the kind of insurance you need. Sitting down with an experienced Insurance Advisor can make this process more efficient and effective.

What kind of insurance do you need for a hospitality business?

Once you’ve got a good idea of your risks, you’ll be able to figure out which policies you’ll need to protect your business. The type of insurance your venue needs will vary greatly depending on your business activities. For example, a bar may require less machinery breakdown cover than a restaurant or café but want higher value theft cover. They also might have a harder time finding a competitive public liability insurance than a wholesale bakery, who in turn may require more product liability cover.

An Insurance Advisor will work with you to analyse your unique risks and provide expert insight on the types of cover that suit. That said, it pays to understand the key types of insurance out there for your hospitality business.

1) Public liability

Public liability insurance provides financial protection for situations where someone is injured or has their property damaged as a result of your business activities. For hospitality businesses, it is a critical policy to have as it can cover food-related illnesses as well as safeguarding you from mishaps involving intoxicated patrons.

2) Property 

Property insurance is designed to cover your assets against loss or damage arising from tangible events. These may include fire, storms, floods, vandalism, and more. It can be a critical cover for your hospitality business as many ventures face heightened fire risks and rely on expensive, specialised equipment or unique assets to do business. For those who own their business premises, you’ll be looking specifically at commercial property insurance.

3) Business interruption

Business interruption insurance safeguards you against loss of earnings caused by specified events. Exactly what is covered is up to the individual policy, but it could be anything from a total shutdown due to a severe weather event, or having to run a reduced menu while your equipment is down.

4) Machinery breakdown

Don’t let the name fool you, machinery breakdown insurance can cover all manner of equipment that is critical to your business or costly to repair. This could include fridges and freezers, cooking equipment, and other electrical goods like audio systems or computers. It can even cover loss of stock.

5) Theft and burglary

Theft and burglary insurance provides financial protection against loss and damages resulting from forced entry. This can include stolen equipment, stock, or even the cost of repairs to your premises. As you may have experienced, break-ins can be a real threat to hospitality businesses.

hospitality insurance

How do I find the best insurance for my venue?

With a better understanding of the key cover options available to hospitality businesses, and knowledge of the risks your particular venture faces, you’ll be in a better place to determine the various policies that are right for you. There are business packs out there you can buy that offer a more “one size fits all” approach, although these can be a pitfall if you’re not absolutely across everything you need and don’t need. It’s also a lot of policy wording to read over on your own.

Perhaps the greatest next step you can make to getting well-fitting cover for your café, bar, restaurant, or any manner of other hospitality business, is to talk with a broker from a reputable brokerage. Our job is to save you time and stress by identifying and comparing cover options that suit your individual situation.

At East West Insurance Brokers we have nearly four decades of experience and work with clients on all sides of the hospitality industry, all around Queensland. Our friendly and knowledgeable Insurance Advisors are here to help. Get in touch today.

1800 809 132  | hello@ewib.com.au | www.ewib.com.au

Categories
Business

Top business risks you should look out for in 2024

Top-business-risks-you-should-look-out-for

Whilst many businesses do their best to survive in a Covid world, business interruption, caused by a multitude of factors, seems to be the underlying theme for 2022. Allianz has released a 2022 Risk Barometer Report which incorporates the views of customers, brokers, and industry trade organisations from around the world regarding the tops risks they believe to be most important. Let’s dive into the top 5 global business risks as anticipated by the survey’s respondents.

1. Cybercrimes

In Australia, cyber risks sit at the number one spot of the country’s top concerns alongside Japan, Italy and the UK. Cyberattacks are becoming more advance and frequent, especially with remote working arrangements being the new norm. The growing dependency on digital infrastructure across various industries has allowed hackers to become more creative in their attempts to exploit new vulnerabilities. Businesses need to take proactive measures to ensure they reduce their cyber risk and increase their organisation’s resilience against modern ransomware technology.

2. Business Interruption

Since the pandemic hit, businesses have experienced an on-again, off-again relationship with their operations, causing significant disruptions to cash flow and the viability of the business. Unfortunately, the past 18 months have shown us that business interruption and its risks are likely to remain a trending issue for the foreseeable future. If anything, the pandemic has revealed how fragile and complex modern supply chains are and how multiple events can cause a domino effect of problems, as what we’ve seen with retail supermarkets in terms of supply and labour shortages.

However, despite the hard hit of Covid-19 on supply chains, the report by Allianz shows the most worrisome cause of business interruption is cyberattacks, particularly with the rise of new ransomware, dependency on digital tools, and remote working arrangements.

3. Natural Catastrophes

Natural disasters have jumped up three spots since last year’s Risk Barometer. Around the world, the frequency and severity of catastrophic weather events are rising due to the effects of global warming. They have led to over $100 billion losses – the fourth-highest year on record. Insurers have paid out a whopping sum of over $8.9 billion in natural disaster claims in Australia alone.

4. Pandemic Outbreak

The outbreak of Covid-19 was an eye-opener for everyone as to how vulnerable and unprepared businesses were in response to a pandemic event. Two years on and with the world opening again, we still can’t rule out the possibility of a more serious variant emerging, causing further disruptions and imposed government restrictions. While most survey respondents believe they are better prepared in their contingency plans, the heavy reliance on digitalisation opens up vulnerabilities that businesses may not be aware of yet and should seek measures in the event of a digital compromise.

5. Fire

This event alone is devastating enough, but it’s not just damage to property and stock that are classified as losses. For over five years until the end of 2018, fire/explosion was the largest single cause of loss for businesses worldwide, as recorded in Allianz’s Risk Barometer. Beyond material losses, fire can prevent businesses from managing their daily operations and reaching their customers for an extended period. The risk of fire is hard to eradicate, but businesses can take action by reviewing their fire mitigation strategies. An effective post-disaster contingency plan can decrease the risk of loss from an incident.

At East West Insurance Brokers, our team of brokers are able to provide your business with a free risk assessment and develop a unique risk profile just for you. This will help you identify the areas within your business to mitigate potential risks and threats. We’ll work with you to implement a suitable insurance plan designed for your industry. Get in touch with the team today, and let’s see how we can help!

1800 809 132  | hello@ewib.com.au | www.ewib.com.au

Important Note: All insurance policies have exclusions. Please refer to the Product Disclosure Statement or Policy Wording to decide whether an insurance policy meets your needs.

Categories
Insurance

How to navigate the hard insurance market

How-to-navigate-the-hard-insurance-market

If you’ve been keeping track of current insurance trends, you’ll notice that the market is experiencing a hardening phase, which means premiums are on the rise and insurers are tightening their terms and conditions. With the pandemic still looming over our economy, things are unlikely to change for the remainder of 2021 and continuing well into 2022. We hate to start on a grim note, but not to worry, we’ve prepared a guide on how to get through this hard insurance market.

First, let’s address the elephant in the room.

Why is the insurance market hardening?

The insurance market is cyclical, and it cycles between hard and soft stages. Each cycle typically lasts anywhere between two and ten years, and no two cycles are identical. The current cycle has been undergoing hardening changes over the last few years. This is caused by a number of factors, mainly:

– Falling investment rates / low interest rates
– Increases in frequency or severity of losses
– Reduced underwriting capacity
– Cost of reinsurance
– Regulatory intervention

Australia was already in the middle of a gradual incline towards a hard market. However, 2020 saw an unprecedented profitability blow to the insurance industry unlike anything we’ve ever seen. To give you an idea, the last calendar year saw only $35m in profit and compared to 2019’s reported $3.1bn, that is a 98.9% decrease. While the occurrence of coronavirus did not help cushion the impact, it is also the unpredictable weather demonstrations that have accelerated the hardening of the insurance market. Australia suffered cataclysmic losses from the effects of bushfires, cyclones, and hailstorms which resulted in insurers having to payout numerous claims in large amounts. With that, insurers may be reluctant or hesitant to insure those risks in the future.

Despite the bleak outlook, there are some steps SME owners can take to get themselves through the other side:

1. Partner with a trusted broker

We’re putting this at the top of the list because of the significant role a broker has especially during these turbulent times. Working with a broker who knows how to navigate the industry is a huge benefit to you and how your case is reviewed by insurers.

2. Plan ahead

Don’t wait until it’s time to renew your policy before you take action. Sit down with your broker to review your current plan and your ongoing requirements. Most organisations will allocate three months to thoroughly evaluate their business and complete an in-depth review of their insurance needs.

3. Prepare to provide more information

With underwriters scrutinising every tiny detail, you need to be prepared to provide more documentation, if requested, to better support your case. If you’re not sure what details to provide, speak to your broker who can help.

4. Prepare your risk control procedures

Documenting your risk control procedures is crucial and an imperative step in the renewal process. Insurers wants to see that you are taking the necessary steps to protect your premise and business assets. This may not have been something important to display in the past, but as we are sitting in a tough market, these documentations and their ability to influence insurance coverage should not be underestimated.

We cannot stress enough about the importance of having a trusted broker who can act on your behalf throughout this hard market period. Think of your broker as the person with the inside scoop on the what’s what within the insurance industry. A broker will assess your risks, advise you on the most appropriate covers, and structure your plan in the most cost-effective way. Our brokers at EWIB can negotiate preferential premiums and insurance coverage tailored to your needs.

At East West Insurance Brokers we have nearly four decades of experience and work with clients on all sides of the hospitality industry, all around Queensland. Our friendly and knowledgeable Insurance Advisors are here to help. Get in touch today.

1800 809 132  | hello@ewib.com.au | www.ewib.com.au

Categories
Business

Make your claim a less stressful experience

If you’ve had to make a claim on your own, it can feel like a daunting process from start to finish. It doesn’t help that insurers are constantly being painted in a negative light, depicting them as difficult and uncommunicative. While some might experience a less than favourable outcome, it isn’t always the case for everyone else. The good news is that you can have an uncomplicated claims journey, considering all necessary documents are in order and you’ve engaged yourself with a trusted broker who can be your advocate throughout the process. We’re here to shed some light with hopes of putting your mind at ease in the event you find yourself having to lodge a claim.

It is without a doubt that brokers have extensive experience with the claims process, and it is their job to make it as simple as possible for their clients. As we mentioned before, insurance claims can be complex, but with a broker’s knowledge and familiarity working with insurers, they know how to manage claims and disputes that may occur.

Deloitte Access Economics released a report in September 2020 outlining how the support of insurance brokers throughout the claims process can have a better outcome on their client’s case, particularly in:

1. Saving time

The report noted that over 40% of SME clients found that their claims process was easier with a broker’s support. From managing communications throughout the repair stage and arranging for quotes, the broker handles every aspect of the claim while the client focuses on getting back to trading as efficiently as possible.

2. Being your advocate

Your broker’s main role is to help and support you through the insurance process. They’re there to ensure you’re covered according to what you need and provide advice while keeping your best interests in mind. Brokers bridge the gap between you and the insurer but their M.O. is to ensure that you receive the best solution possible. Their positive relationship with insurers allows them leverage when managing tricky and unusual cases. Plus, it’s always good to have someone you can turn to for emotional support while going through the claims process.

3. More favourable claims payout

Deloitte’s report also found that those who engage a broker are more than twice as likely to be fully covered for their claims and had a higher amount of loss covered. Almost 90% of broker clients were covered for more than half of their claim, as compared to direct buyers at 75%. This tells us that an experienced broker would know how to tailor a product package for their client so that in the event of a claim, they are well covered to receive a higher payout.

Client relationship is an important aspect of a broker’s role. When you engage a broker, it is usually for the long term. A broker isn’t someone who’s there only when you need insurance. They’re proactive professionals who check in on you periodically to ensure that your needs are met and that your insurance reflects your business’ goals. They’re also up to date with the latest industry news that could impact your policy so you can prepare ahead of time.

With that in mind, if you’re in the market for a skilled and experienced broker to assist with your insurance needs, our doors are open to you. We offer a wide range of products and services for SMEs in various industries. Our team will work with you to implement a suitable insurance plan designed for your business. Get in touch with the team today, and let’s see how we can help!

1800 809 132  | hello@ewib.com.au | www.ewib.com.au

Important Note: All insurance policies have exclusions. Please refer to the Product Disclosure Statement or Policy Wording to decide whether an insurance policy meets your needs.

Categories
Cyber Insurance

How to navigate rising cyber insurance premiums

How-to-navigate-rising-cyber-premiums

Survey after survey, business executives have unanimously agreed to one thing: the risk of a cyber attack as their biggest fear. Reviewing the most recent Allianz Risk Barometer, cyber incidents and business interruption tie as the top concerns of Australian businesses, with over 40% of responses to these risks.

These results come as no surprise to cyber security experts, with cyber crimes becoming increasingly common especially since the pandemic began. At the start of Covid-19, we saw a spike in the number of ransomware attacks against businesses of all sizes. With the continuous evolution and advancement of these ransomware, they are becoming more successful in their attempts to harm organisations, costing businesses billions of dollars every year. With many of us continuing to work remotely in the endemic stage, there are no signs of cybercrimes slowing down.

According to the Australian Cyber Security Centre (ACSC), the 2020/21 financial year saw over 67,500 cybercrime reports made via ReportCyber. In an everyday perspective, one cybercrime is reported approximately every eight minutes in Australia. That’s a staggering increase of nearly 13% from the previous financial year. The average 2017 cyber claim has risen over three times the severity of previous years, with ransomware incidents making up over 30% of claims. With cyber claims on the rise, it is no surprise that insurers are tightening their belts to accommodate the high levels of risk and cost of claims. The result of this will ultimately see the cost of premiums go up as well.

What does this mean for SME business owners?

As insurers are becoming more stringent with their requirements, it is increasingly difficult to get covered against cyber risks. You will need to show insurers that you are taking the necessary (and improved) steps to prevent a compromise to your IT systems. A previous mitigation plan may no longer apply as it could be insufficient to modern malware, and it will be tough to secure an insurer who will be willing to underwrite the risk. For bigger companies with an in-house IT department, preparing an updated mitigation plan may not be an issue. However, for small companies without a dedicated IT security team, this can prove to be a challenge.

Fortunately, there are steps that SMEs can take to meet the strict criteria set out by insurers. Mitigation is key when it comes to cyber security. The help of an experienced insurance broker can help bridge the gap and make it less complicated for small businesses to get covered. Remember, not all cyber policies offer the same level of protection. It can be challenging to determine the best insurance policy for your business. Engaging a broker will not only ease the application process, but they will also advise the steps you need to take to ensure your business continues running smoothly.

At East West Insurance Brokers, we know what the insurers are after. We’ll learn the ins and outs of your business and work with you to create a cyber security plan so you can get a fitting cyber insurance cover for your business. With hackers always at work and cyber attacks occurring more frequently, it’s best to act now before it is too late.

1800 809 132 | hello@ewib.com.au | www.ewib.com.au

Important Note: All insurance policies have exclusions. Please refer to the Product Disclosure Statement or Policy Wording to decide whether an insurance policy meets your needs.

Categories
Business

6 Common Questions About Commercial Property Insurance

commercial property insurance australia east west insurance brokers
industrial warehouse with orange roller door

The first step in getting your commercial property insurance sorted is knowing whether you need it or not. The good news is, this is an easy one.

  1. Why do you need commercial property insurance?
  2. What does commercial property insurance cover?
  3. How much does commercial property insurance cost?
  4. What should I consider when buying commercial property insurance?
  5. What should I watch out for with commercial property insurance?
  6. Where should I go from here?

If you own commercial property of any size or type, then you should consider commercial property insurance. We’re talking anything from an office building to an industrial warehouse, from a cold storage facility to a retail space, and beyond.

If you have financed the purchase, renovation, or fitout of your property then you may actually be required to have property insurance to secure your loan. This can also extend to finance for your contents, stock, or machinery.

Likewise, other contracts you have relating to your property or contents will often contain conditions regarding property insurance, so make sure you have a good look over all of your paperwork. Fortunately, this is something an experienced broker can help you with.

Why do you need commercial property insurance?

You may have just found out that you need to consider property cover, let’s look at why it is a critical part of a sound risk management strategy for any commercial property owner.

You obviously purchased (or are purchasing) this property for a reason, and at the end of the day that reason is to generate future income.

Ask yourself the question – if your property is damaged beyond use, could you afford to repair or replace it without insurance? Or even, would you be able to continue to produce income from your business if the worst did happen?

If you answered no, then you need commercial property insurance to protect your business from these situations.

Commercial property insurance is designed to cover you as an owner, and protect you against exposure to the risks of owning property. That said, not every property policy will suit your unique needs, a qualified broker can assist you in finding the best insurance that covers your needs.

What does commercial property insurance cover?

In general, commercial property insurance covers your property and income for damage arising from tangible events. These can include storms, fire, floods, theft, vandalism and more. There are often optional sections of cover you may wish to add on, such as machinery breakdown, electronic equipment, and general property/tools of trade.

There are two main types of commercial property policies: business pack insurance and industrial special risk (ISR). The most notable difference between the two is that an ISR policy covers your property against damage unless an exclusion is specifically made, whereas a business pack only covers defined events, for example, fire or theft.

An ISR policy may sound preferable, however they are usually only available for property with a combined asset value of over $10 million (some insurers will occasionally consider $5 million).

A broker can help you determine which kind of policy is appropriate for your assets and risks and even tailor cover to fit your situation more effectively.

How much does commercial property insurance cost?

As with all insurance, there are a number of factors that will affect the price of your premium. The average cost of commercial property insurance changes based numerous risk factors considered by insurers. These are all worth keeping in mind when purchasing or making changes to your premises.

  • The location of your property
  • The construction of your buildings
  • The security of your premises
  • The fitout of your property
  • The stock held on your property
  • The equipment held on your property
  • The size of your property
  • The age of your buildings
  • The business activities undertaken at your premises

For more information on how these considerations affect your premiums, and what you can do to avoid higher costs, speak to an experienced broker.

Why do you need commercial property insurance?

What should I consider when buying commercial property insurance?

Any insurance policy will only work effectively when it is suited to the specific circumstances it covers. The most important things to consider are: your property’s unique risks and whether the policy covers those, and whether the limit of the policy would be enough to rebuild the premises and your business if you suffered a total loss.

An off-the-shelf commercial property policy is likely to have exclusions that may make it inadequate for your needs, it may also be missing important additions relevant to your unique situation. A full-coverage policy is another option, but it will cost you more.

Price is obviously an important consideration for any business, though be warned that the cheapest policy rarely provides the best coverage. The excess you set will also impact your premiums, but it should be a realistic amount you can afford if the worst does occur.

On that note, underinsurance is becoming a prevalent concern in today’s market. Having a replacement cost valuation completed will help you determine the amount you need to insure your property for. Also, stay vigilant with property market changes and keep your policy up to date if you make any alterations or additions to your premises or if tenancies change.

At the end of the day, the best insurance for commercial property and how much it costs will come down to your individual space and your business’s specific needs. Fortunately, a qualified insurance broker can assist you in determining those.

What should I watch out for with commercial property insurance?

Make sure you gather as much detail about your property and its construction as possible, as insurers will expect full disclosure of anything that is a concern. This could be something common like asbestos, or something less obvious like a specific brand of cladding or machinery that has a higher risk factor.

Remember that commercial property insurance is separate to liability insurance, while there may be some overlap, it is good practice to have both types of cover to protect your business.

A solid piece of general advice is to review all documents as soon as you get them, you should also be provided a certificate of currency that stipulates your cover limits. Continue to revisit them regularly, particularly if you make a change to the building or tenants.

Finally, revisiting the issue of underinsurance, if you are found to have failed to insure your property for a reasonable value you could be held accountable for a percentage of the repair or replacement costs in the event of a loss. Using a qualified insurance valuation expert to make sure your property is insured for an appropriate amount can protect you against this risk.

Where should I go from here?

If you have determined that you may need commercial property insurance, having a broker do the heavy lifting can be a good assurance, and help make the process easier and more efficient. There are a lot of policy wordings to read after all.

At East West Insurance Brokers our team has several decades of combined experience in commercial property insurance, and we are here to assist you through the process of getting your business appropriately covered, and keeping it that way.

From the initial identification of your unique risks, to customising a policy to suit you and your business, you can trust our friendly and knowledgeable insurance advisors to aid you on your journey.

Get in touch today for a commercial property insurance quote tailored to suit you.