Machinery Breakdown Insurance

No. Standard commercial property insurance covers machinery damaged by external events such as fire, storm or theft, but does not cover internal mechanical or electrical failure. Machinery breakdown insurance is a separate cover that specifically addresses internal failures such as motor burnout, bearing seizure and electrical short circuit.

Yes. HVAC and air conditioning systems are one of the most commonly insured items under machinery breakdown policies. Cover includes compressor failure, refrigerant leaks caused by mechanical failure, fan motor burnout and control system malfunction. Given the high replacement cost of commercial HVAC systems, this is one of the most valuable covers for property owners.

Deterioration of stock cover pays for the loss of temperature-sensitive stock if refrigeration or cold storage equipment breaks down. This is essential for restaurants, supermarkets, pharmaceutical businesses, medical practices and any business storing perishable goods. It is usually available as an add-on to the machinery breakdown policy.

Yes. Lifts and escalators are standard items that can be listed on a machinery breakdown policy. Cover includes motor failure, gearbox breakdown, control system malfunction and other sudden mechanical or electrical failures. Given that a lift motor replacement can cost $30,000 to $80,000, this cover is important for any multi-storey commercial building.

Some insurers impose age restrictions, typically declining cover for equipment over 15 to 20 years old, or requiring an inspection report before agreeing to cover older items. Well-maintained equipment with documented service history is more likely to be accepted regardless of age. Discuss the age of your equipment with your Shielded broker.

Hiring temporary replacement equipment while the insured item is being repaired may be covered under the expediting expenses or additional cost of working section of the policy. This is particularly relevant for production machinery, generators and commercial kitchen equipment where downtime directly impacts revenue.

Machinery breakdown insurance is offered by major commercial insurers including CGU, QBE, Zurich, Vero, Hollard, Allianz and AIG. It is typically available as a standalone policy or as an add-on section within a broader commercial property package. Shielded compares options across our insurer panel to find the best cover for your equipment.

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.