Industrial Property Insurance

Standard property insurance covers machinery damaged by external events like fire, storm or theft, but it does not cover internal mechanical or electrical breakdown. Machinery breakdown cover is available as an endorsement and is strongly recommended for any industrial operation that relies on plant and equipment for production.

Industrial property insurance is a form of commercial property insurance specifically tailored for factories, warehouses, workshops and manufacturing facilities. It addresses risks that are more common in industrial settings, such as machinery breakdown, hazardous materials, high-value stock, heavy vehicle movements and extended business interruption periods.

Flood cover is available on most industrial property policies, though it may be subject to a higher excess in flood-prone areas. Some industrial estates built on floodplains may face limited flood cover options or sub-limits. It is important to confirm whether your policy covers riverine flood, stormwater runoff, or both.

Business interruption cover is strongly recommended. A major fire or flood can shut down an industrial operation for 6 to 18 months while the building is rebuilt and machinery replaced. Without business interruption cover, you would need to continue paying rent, wages, loan repayments and other fixed costs from your own funds during that period.

Automatic sprinkler systems provide the largest premium discount, often 30 to 50 per cent. Other measures that reduce premiums include fire detection and alarm systems, fire hydrants and hose reels, compliant emergency exits, separation of high-risk activities, proper storage of flammable materials and regular fire safety audits.

Many older industrial buildings in Australia contain asbestos in roofing, wall cladding or insulation. The presence of asbestos does not prevent you from obtaining insurance, but insurers need to be made aware of it. Some policies include limited cover for asbestos removal following an insured event, while others exclude it. Your Shielded broker will ensure this exposure is properly addressed.

Yes. If you own or lease multiple industrial premises, they can be covered under a single policy with separate sums insured for each location. This often provides administrative savings and may result in a lower overall premium than insuring each property individually. Shielded regularly arranges multi-site industrial insurance programs.

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.