Insurance Brokers: Preventing the Gamble with Commercial Property Insurance

Many entrepreneurs acknowledge that commercial investments can be a risk at the best of times, particularly in the changing economic climate. So, it is crucial that you protect your interests. Unfortunately, many property owners gamble with their insurance and can end up paying a hefty price. For example, many of the businesses that were affected by the 2011 floods in Queensland were not adequately insured. So, here we’ll explore how insurance brokers can help you to avoid gambling with your insurance coverage.

Why Are there Problems With Commercial Insurance?

Many experienced Perth insurance brokers attribute the lack of coverage to the nature of the insurance industry and marketplace. It can be challenging for business owners to make informed choices about the policies needed due to the complexity of the products. This is where experienced insurance brokers can help. Part of the role of a broker is to help clients understand the exclusions and inclusions of business insurance policies to ensure that you’re adequately protected.

The Importance of Commercial Property Insurance

Commercial property insurance is a specialist type of insurance designed for business premises. These policies can help to prevent financial loss from events occurring during commercial activities. This can cover expenses caused by flooding, fire, burglary, accidental damage or other unforeseen events. The cost of the insurance will be dependent on risk calculations, so properties in high crime areas or in areas prone to flooding will be charged a higher premium.

Insured or Uninsured Against Stormy Weather?

The 2011 floods highlighted why it is vital that your commercial insurance policy needs to be assessed by a professional broker. The wording of policies can be extremely complicated and in some cases, can seem counterintuitive. For example, there have been cases of policies that provide coverage against "water inundation" yet have a flood inclusion.

This type of wording is common, and you need to understand that there are distinct differences that can impact your coverage. Professional insurance brokers deal with these complicated terms and policy details day in, day out. So, they are equipped to analyse policy wording to determine if it provides the best coverage for your business.

Commercial Landlord Insurance

Property issues are not restricted to the premises where you operate your business. If you own property that is leased out, you also need to ensure that your investment is protected. While some leases require a tenant to source their own insurance, many leave this as a responsibility for the landlord.

This means that you need to ensure that your property is protected against accidental damage, fire, theft or weather damage. While your tenant may have insurance to cover their stock and equipment, this will not help you if water damage creates a need for flooring, walls or other building materials to be replaced.

If you are in need of commercial insurance and need to speak to experienced insurance brokers, you can rely on us. As established Perth insurance brokers, we would be delighted to discuss your circumstances and help you to find the best possible deal.