Factory Insurance

Machinery breakdown is typically available as an extension or add-on to factory insurance. It covers the cost of repairing or replacing machinery that fails due to mechanical or electrical breakdown - distinct from damage caused by fire, storm or other external events. Given the reliance on production machinery, this cover is strongly recommended for most factories.

Products liability cover is often included or available as an extension on factory insurance policies. It covers legal liability if a product you manufacture causes injury or property damage after it leaves your premises. The level of cover required depends on your product type, volume and distribution channels. Most manufacturers carry $10M or $20M of products liability.

Yes. Fire damage from welding and other hot works is covered under factory insurance. However, insurers expect factories to have formal hot works procedures including permits, fire watch periods, removal of combustibles and appropriate fire extinguisher access. Failing to follow these procedures could affect a claim.

Business interruption cover reimburses your factory's lost gross profit and ongoing fixed costs if production is halted by an insured event such as fire or storm damage. It also covers additional expenses incurred to minimise the interruption, such as outsourcing production or hiring temporary facilities. The indemnity period typically ranges from 12 to 36 months.

Standard factory insurance policies typically exclude gradual pollution and environmental contamination. However, sudden and accidental pollution events (such as a chemical tank rupture) may be covered under some policies. Factories handling hazardous materials should consider a separate environmental liability policy for comprehensive protection.

Yes. Even if your landlord insures the factory building, you need your own policy to cover your machinery, stock, fit-out, tenant liability, products liability and business interruption. Your industrial lease will typically require you to hold minimum levels of public liability insurance and to insure all tenant property.

Leading commercial insurers offering factory and manufacturing insurance in Australia include CGU, QBE, Zurich, Vero, Hollard, Allianz and AIG. Each has different appetite for different manufacturing types. At Shielded, we compare across these insurers to find the right factory insurance package for your operation.

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.