It is just common sense to have adequate commercial property insurance in place, no matter the size of your business.
Commercial Property Insurance is designed to protect your business against damage or loss of business equipment.
The aim of commercial property insurance is to return your business to the same financial position it was in, before the catastrophic event took place.
The two ways to determine what sort of cover you need, are done by either calculating Actual Cash Value or Replacement Cost.
The Actual Cash Value (the present day value of your property) is arrived at, by calculating the amount it would take to replace a property, then deducting depreciation caused by wear and tear.
Replacement Cost calculates the replacement cost of the property as new, rather than the depreciated value.
Generally, this type of insurance covers:
- Damaged or Lost property and/or contents
- Fire & Theft, earthquake, lightning, explosions, storms, wind, water
- Some policies cover removal of debris, fire extinguishment, capital additions to buildings & contents
- Vandalism, riot, industrial dispute
- Goods damaged while being transported
Here are the general exclusions:
- Loss or damage caused by war, rebellions, invasions, terrorism, revolution and looting
- Intentional acts by your or someone else with your insight
- Flood- this is generally an optional extra in most policies
- Loss or damage caused by the sea and/or tidal waves- unless caused by an earthquake/seismological origins
- Fraud & embezzlement by you or your employees
- Storm surges, cyclones & bushfires (some policies may cover these)
- Clerical & accounting errors, faulty workmanship, non compliance issues, architectural errors
- Erosion or subsidence unless by earthquake or storm
- Damage caused by termites, insects, vermin, mould, rust, oxidation
- General wear & tear
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