Expert Advice from The Commercial Property Insurance Brokers
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What is
Industrial Building Insurance
?
Industrial building insurance is crucial for owners of facilities like factories and warehouses. It covers the building, equipment, and materials against events such as fires, explosions, and structural damage.
This insurance differs from commercial insurance by addressing the unique risks of hazardous materials and heavy machinery. It includes business interruption cover to minimise financial loss and downtime during operational disruptions. Additionally, it can cover specific machinery breakdowns and environmental liabilities.
Accurate valuation is essential to prevent underinsurance. Consult with a specialised insurance broker to ensure proper cover tailored to your industrial needs.
Policy features of
Industrial Building Insurance
can include:
What Can Be Covered
Accidental, malicious damage and perils (eg. fire)
Loss of rent
Injury to third parties
Damaged glass or signage
Landlord legal liability
Machinery breakdown
Tax audit
What Cannot Be
Flood, unless requested
Tenant default
Deterioration (wear& tear)
Neglect, lack of maintenance
Properties vacant for continuous periods (varies by insurer)
Industrial Building Insurance
Claim Example
Giovanni built a commercial shed in 2010 for $1.0M and each year the insurance company had indexed it a little so that by 2023 it was insured for $1.46M. Giovanni was introduced to a specialist building insurance broker who helped arrange a building replacement estimate that suggested the cost of rebuilding today would be $2.1M, plus there should be allowance for $200,000 for removal of debris costs too.
Giovanni accepted the broker’s recommendations and took out a new policy at the higher limits.
A few months later, a storm came through which severely damaged the roofing and a repair bill was estimated at $500,000. Giovanni got speaking to the insurance assessor and mentioned to him that he had only recently increased his cover from $1.46M to $2.3M. The assessor explained to Giovanni how lucky he was, as otherwise the assessor would have had to apply the underinsurance clause - and - based on this particular policy wording – he would only have been paid $396k instead of the full $500k they were paying for him now.
Until then, Giovanni had not realised he had dodged a bullet – and was very thankful to his broker for giving him proper advice!
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Navigating
Industrial Building Insurance
Answering your most asked questions.
It should cover the building structure, contents, loss of rent, public liability, machinery breakdown, and tax audit expenses. Get a comprehensive industrial building insurance policy tailored to your needs.
Industrial insurance is tailored for machinery and property risks in industrial settings, whereas commercial covers a broader range of building types. Find out which insurance suits your property best by contacting us.
Covers factories, warehouses, and manufacturing facilities among other industrial structures. Secure your industrial property with the right insurance policy.
Protects against property damage, machinery breakdown, and public liability. Ensure your industrial property is fully protected.
Costs vary based on location, property size, and coverage options, typically ranging from a few hundred to several thousand dollars annually. Get a tailored quote for your industrial property insurance.
Factors include location, property size, specific risks, and coverage options. Let us help you understand the factors affecting your insurance costs.
Yes, policies can be customised to meet specific needs. Customise your industrial insurance policy with our help today.