Commercial Property Insurance in Australia

The cost of commercial building insurance in Australia can vary widely depending on several factors. Here are the key elements that influence the pricing:

• Building Value and Replacement Cost: The insurance premium will largely depend on the value of the building and the cost to rebuild it in case of a total loss. Higher-value buildings will naturally attract higher premiums.

• Location: The location of your building significantly impacts the cost. Buildings in areas prone to natural disasters (like floods, bushfires, or cyclones) or high crime rates will generally have higher insurance costs.

• Building Usage: How the building is used also affects the cost. For instance, a building used for manufacturing might have a different risk profile compared to one used for retail or office space.

• Construction Materials and Age: Older buildings or those made with less durable materials might have higher premiums due to increased risk of damage and higher repair costs.

• Coverage Level: The extent of coverage you choose—basic coverage, including just the building structure, versus comprehensive coverage, which might include contents, equipment, and liability—will affect the overall cost.

• Claim History: Your business's history of insurance claims can influence premiums. A history of frequent or high-value claims can lead to higher costs.

While it's challenging to provide a precise cost without specific details, here are some rough estimates for commercial building insurance in Australia:

• Small to Medium-Sized Businesses: Premiums can range from $1,000 to $5,000 per year for a small to medium-sized business property.

• Large Commercial Properties: For larger properties, premiums can range from $5,000 to $20,000 or more per year.

If you’re wondering about the cost of commercial property insurance in Australia, ask us for a quote today.

ACS Financial provides market-leading protection for your commercial property. For a commercial insurance quote that’s tailored to the specific needs of your business, speak to the team today.

Our experienced team will guide you through each stage of the claims process. Once you report and document the incident, the insurer will assess your claim and provide a settlement offer. This offer can be negotiated if you believe the settlement is too low. The property claim is then settled once all parties are satisfied with the outcome. 

Some commercial real estate insurance exclusions include gradual deterioration of the building, general wear and tear, mould, damage to the property’s foundations, and design defects. 

It’s important for property owners to have public liability insurance so they can protect themselves for personal injury or property damage to third Parties. This includes tenants the landlord is liable for.