Commercial Building Insurance

Building insurance covers only the physical structure and fixed improvements. Commercial property insurance is a broader term that typically includes both building and contents cover, and may extend to business interruption, liability and other covers. Building insurance is one component within a broader commercial property insurance program.

Flood cover availability depends on the insurer and the property's flood mapping. Some insurers include flood automatically, others offer it as an optional extension, and some exclude flood entirely for properties in high-risk zones. If your commercial property is in a flood-prone area, it is critical to confirm flood cover is included in your policy.

Underinsurance occurs when your sum insured is less than the true replacement cost of the building. If you are underinsured, the insurer may reduce your claim payment proportionally under the averaging clause. To avoid this, obtain a professional building valuation every three years and update your sum insured to reflect current construction costs.

No. Commercial building insurance covers the landlord's structure and fixed improvements only. Tenant fit-outs, partitions, fixtures installed by the tenant, and all tenant-owned property are the tenant's responsibility to insure under their own commercial property or contents policy.

Earthquake cover is included as a standard peril in most Australian commercial building policies. However, some policies apply a separate earthquake excess, which can be a percentage of the sum insured rather than a flat dollar amount. Check your policy schedule for the earthquake excess level.

Your sum insured should include allowances for architect fees, structural engineering, quantity surveying, project management and council application costs. These professional fees typically add 10% to 15% on top of the base construction cost. Failing to include them is a common cause of underinsurance.

Leading commercial building insurers in Australia include CGU, QBE, Zurich, Vero, Hollard, Allianz and AIG. Each insurer has different appetite depending on building type, value, location and occupancy. Shielded compares quotes across our full insurer panel to find the best cover and premium for your commercial building.

Commercial property insurance covers a wide range of property types including office buildings, retail shops, warehouses, factories, shopping centres, hotels, motels, restaurants, cafes, medical centres, child care centres, gyms, salons, laundromats, churches, petrol stations, mixed-use developments and more. Whether you own a single tenancy or a multi-storey complex, we tailor cover to match your property.

Premiums vary based on building value, location, construction type, tenant occupation and risk profile. A small retail shop may cost $1,500 to $4,000 per year, a standard office building $3,000 to $10,000, and a large warehouse or industrial property $5,000 to $25,000+. High-risk tenancies (restaurants, manufacturing) attract higher premiums. Request a free quote through Shielded for an accurate indication.

Commercial building insurance covers the physical structure including walls, roof, floors, fixed fixtures, common areas, car parks, fencing and services (electrical, plumbing, HVAC) against fire, storm, flood, impact damage, malicious damage, theft and accidental damage. It typically also covers demolition and removal costs, professional fees (architects, engineers) and compliance with current building codes when rebuilding.

If you own a commercial building and lease it to tenants, you need commercial landlord insurance. This covers the building structure, landlord's contents (common area furnishings, HVAC systems), public liability for common areas, loss of rental income if the building is uninhabitable after an insured event, and plate glass. Your tenants are responsible for insuring their own contents, stock and fit-out.

Loss of rental income (also called business interruption for landlords) provides replacement income if your commercial property becomes uninhabitable after an insured event such as fire, storm or flood. It covers the rental income you would have received during the repair or rebuild period, typically for up to 12 or 24 months. This is essential for property investors who rely on rental returns.

Plate glass cover is usually an optional add-on, not included in the base building policy. It covers the cost of replacing glass shop fronts, windows, doors, display cases and signage glass that is accidentally broken or vandalised. For retail properties with large glass frontages, this is an important cover to include.

Generally, the landlord insures the building structure, common areas and landlord's fixtures. Tenants are responsible for insuring their own contents, stock, fit-out, trade fixtures and their own public liability. Most commercial leases clearly define these responsibilities. As a landlord, ensure your lease requires tenants to hold adequate insurance and provide certificates of currency.

Contact us at Shielded Insurance on 1800 97 98 99 or reach out to your insurer directly. We recommend notifying us as soon as possible after damage occurs, documenting everything with photos, securing the premises to prevent further damage, and keeping records of all emergency repair costs.

We compare quotes from leading Australian commercial property insurers including CGU, QBE, Zurich, Vero, Hollard, Allianz, AIG and others. The best insurer depends on your property type, construction, tenant occupation and risk profile. As brokers, we do the comparison work to find competitive and suitable cover for your property.

Review your policy annually at renewal, or whenever there are significant changes such as new tenants, renovations, extensions, changes in building use, or updated valuations. Building replacement costs increase over time - if your sum insured does not keep pace with construction cost inflation, you risk being underinsured at claim time. We recommend a professional building valuation every 3 to 5 years.