Commercial Strata Insurance for Melbourne Companies

Commercial strata insurance typically covers the following:

• Building structure: Protection of the building and components of a common area from various damages such as fire, storm, flood, or collision. It doesn’t cover the contents of individual units or tenants’ belongings.
• Public Liability: Covers legal expenses and compensation if an injury occurs on a property owned by either party.
• Equipment breakdown: Security of objects accessible to all tenants, such as lifts, HVAC systems, and security systems.
• Loss of Rent: Provides reimbursement for missed rental income when tenants are unable to occupy the property due to a covered event.
• Legal Expenses: Coverage for specific legal costs, such as property disputes or non-compliance issues, often included in an insurance plan for easy understanding.

We can help YOU understand YOUR policy specifics and ensure appropriate coverage.

Key differences include:

• Coverage amount: Commercial policies, including strata, offer broader coverage than residential due to:
  1. Higher business activity risks
  2. Increased liability exposure
  3. More valuable common assets
• Public liability: Commercial buildings need higher public liability limits than residential ones since more people visit such places, and the risk of an accident is higher.
• Business interruption: Unlike standard homeowner’s insurance, most commercial property policies typically include coverage for business interruption or rental income loss.
• Equipment protection: Commercial buildings often contain shared, high-value, and complex equipment, necessitating more specialised insurance coverage than residential properties.
• Regulations: Insurance policies for commercial properties may vary widely, often incorporating specific requirements and safety protocols tailored to the business environment.
• Risk assessment: The range of risks in commercial settings is more extensive, encompassing factors such as the types of businesses operating within the building, stored inventory, and industry-specific hazards.

Premiums are based on factors including:

• Building value: The cost to rebuild the property often determines the premium the policyholder pays.
• Location: A property in regions that experience natural calamities or high levels of criminal activities could attract higher premiums.
• Building age and construction: Old or uniquely built structures typically face higher insurance premiums.
• Occupancy Type: The type of business operations conducted in the building affects insurance risk and cost. For example, a restaurant poses risks different from those of an office, influencing premiums accordingly.
• Claims history: If claims have been filed irregularly in the past, premiums are likely to be higher.
• Safety and security measures: Some factors, such as good security installations or benefits in case of a fire accident, may lead to low premium rates.
• Coverage limits and deductibles: Opting for higher coverage limits will increase YOUR premium, but choosing higher deductibles could lower YOUR costs.
• Size of the property: Large risks are usually attached to large properties, which is why they attract higher premiums.

Yes, individual unit owners should consider:

• Contents insurance: This covers the owner’s belongings and business items stored inside the storage unit.
• Business interruption insurance: If the unit is being used for business, it can reclaim lost income if it cannot be used because of an insured event.
• Public liability insurance: The building insurance only covers common areas, while the unit owners need personal liability insurance for accidents within their units.
• Glass insurance: Certain events, such as broken glass, may not be covered, and unit owners might want to purchase additional insurance.
• Improvements and additions: Modifications or improvements made by unit owners typically aren’t covered by strata insurance and may require separate personal coverage.