Landlord Commercial Insurance

Steadfast Eastern provides comprehensive Landlord Commercial Property Insurance in Australia, ensuring the protection of your investments and your property.

With our reliable coverage options and experienced team, Steadfast Eastern is the go-to provider for landlord insurance in the commercial property market. Our Commercial Landlord Property Insurance can cover you for loss of rental income, property damage caused by insured events, and more.

But my tenant has insurance. Isn’t that enough?

Leaving your commercial property insurance to be managed by your tenants is risky and could have disastrous effects. Sums insured may not be insured correctly, a tenancy description may be inaccurate, or premiums may not be paid on time, leaving your assets exposed. In addition, the liability policy taken out by your tenants will not cover you for liability. Hence, as a landlord, you should be responsible for your own commercial property insurance.

Commercial Landlord Insurance

Commercial landlords require unique commercial property insurance coverage. The following sections highlight the coverage that is generally specified in lease agreements for tenants.

(Note that the below list of policies may not encompass all the forms of insurance you may need as a commercial landlord. Additional forms of insurance may be required, depending on your situation.)

Fire and Perils Insurance

This section will cover your business property such as landlord buildings and/or contents against fire and other perils such as water, storm damage, malicious damage and accidental damage. It also provides automatic cover for removal of debris (clean-up costs associated with damage to a property). When reviewing this section of your policy, check to ensure the automatic removal of debris limit provided by the insurer is adequate for your situation.

Business Interruption Insurance

This section covers your loss of rent. Most insurers will offer you 12 months loss of rent cover following a loss. However, depending on the size of your building, the type of construction (e.g. if asbestos is present it may require more construction time) and location, you may need to consider 18 or even 24 months loss of rent cover in your commercial landlord insurance.

Glass Insurance

The concern for most landlords tends to be the external glass on buildings, as it is generally the most expensive. Some landlords allow the tenant under the lease agreement to insure the glass. This allows the tenant to also cover any signage they may have put on the glass (e.g. retail shops) and insure, under the same section, all internal glass which the landlord may have, or the tenant may bring with them as part of their tenancy. Again, in this situation you are relying on the tenant to take out the appropriate insurance and be up to date with their premiums, which may be risky. Hence, you may wish to insure the glass yourself.

Burglary Insurance

Many commercial property owners will question why burglary is needed, when the property held within the building is owned by the tenant.  In our experience, we have found that property owners do experience theft of their assets, including things like copper piping, expensive fixtures, nostalgic signs and so on. Therefore it is certainly worth getting burglary cover as part of your commercial property insurance package.

Commercial Property Owner’s Liability Insurance

A tenant who purchases legal liability cover in a rented property does so to protect the business activities of their business. Their legal liability cover does not cover the landlord for their liability as the owner of the premises. Landlords must ensure they have their own property owner’s coverage in case incidents arise at their property.

The level of cover you will need as a property owner will depend on a number of factors, including the type of commercial property. As a minimum, we recommend no one should insure below $10,000,000.

If your building is part of a commercial body corporate general insurance, you may wish to review the loss of rent and property owner’s liability cover in relation to your unit.

Landlord building insurance

Landlord building insurance provides coverage for the physical structure of a building owned by a landlord. This coverage can help protect a landlord’s financial situation in the event of damage or loss to the building. It is important for landlords to consider obtaining landlord building insurance as part of their overall risk management strategy.

Machinery Breakdown

This section covers sudden and unforeseen loss to your plant and machinery.

You may wish to consider this cover where you have large machinery such as air conditioning units on office buildings, or equipment in a manufacturing plant, warehouse, factory, or other type of premises. A breakdown of machinery can mean that the premises may not be used for a period of time. In such cases, you may need to wait for repairs and your tenant may not be able to operate their business from the premises.

The importance of a Business Continuity Plan

As part of taking out insurance with Steadfast Eastern Insurance Brokers, we will ask to see your Business Continuity Plan (BCP). Even if you are insuring just one property and don’t see yourself as a ‘business’, you still need a BCP, as it helps see you through unforeseen circumstances where you may experience a major loss. Such an event can have large financial implications, and could consume a lot of your time, so it’s smart to be prepared.

We will ask questions like, have you allowed for additional costs that may accrue during the repair or rebuilding phase? Do you have a plan in place to protect your business reputation?

We will also want you to confirm what kind of maintenance schedules you have in place for the ongoing upkeep of machines and equipment on your premises.

Discussing your BCP can help identify exposures you may not have thought of, and will help to create a more solid and all-encompassing package of insurance to give you peace of mind.

Why choose Steadfast Eastern Insurance Brokers?

At Steadfast Eastern Insurance Brokers, we understand the unique exposures faced by commercial property landlords, and are thus able to tailor insurance services to your specific needs and circumstances.

We provide insurance solutions to businesses of all sizes across Australia, and have become one of the most reliable and trusted brokers in our industry. Our experienced team will work with you to ensure your business is well protected with quality coverage that meets your unique needs.

Contact us today to learn how we can help you secure a comprehensive and cost-effective Landlord Commercial Insurance policy.  With our expertise, you can be sure you’re getting the right protection at an affordable price. Get in touch now to get started!