Commercial Strata Insurance

This is insurance designed specifically for Commercial Property Owners and is ideally suited to commercial properties of any size.

The Commercial Strata Body Corporate can be insured ordinarily in different ways but depending on its size. There are specific packaged policies for properties up to a value of $35,000,000. Above these amounts, an Industrial Special Risks policy tailored to the risk is taken.

What does it cover?

The special package policies available generally have the following sections:

• Section 1 – full accidental damage property cover with an automatic 30% loss of rent benefit in addition to the sum insured.
• Section 2 – provides property owner’s liability cover up to a maximum of $20,000,000
• Section 3 – Machinery Breakdown where electric motors suffer stoppages.

These policies are aimed at the Strata owner with lower risk type tenants. They do always include cover for high hazard tenant occupations, such as Wood Work, Tattoo Parlours and Large deep frying or Wok Cooking risks.

What are the benefits within the cover?

The following are an example of the types of benefits you might find in these policies

Section 1 – Property Insured

• Accidental Damage – no sub-limit
• Property sum insured is not subject to a co-insurance clause
• Additional Benefits (in addition to sum insured)
   Loss of Rent Receivable, Failure of Supply Services, Infectious or Contagious Diseases, Murder or Suicide, Reletting Costs, Maintenance Fees – up to 30% of Property sum insured (in addition to sum insured)
   Property in the Open Air – $10,000 to $30,000 sub limit
   Replacement Locks & Keys – between $2,000 and $5,000 per incident
   Fire Extinguishment Costs – Costs and expenses reasonably and necessarily incurred
   Arson Reward – from $10,000 to $20,000 per Incident
   Personal Property – from $5,000 to $20,000 per Incident
   Claims Preparation Costs – up to $50,000 per Incident
   Mortgage Discharge – between $5,000 and $20,000 per Incident
   Removal of Water from Basement – between $10,000 to $50,000 per Period of Insurance
   Additional Utility Charges – from $2,000 to $5,000 per Incident
   Exploratory Costs – Costs and expenses reasonably and necessarily incurred
   Alterations and Additions – Covered when the cost of the alteration or addition is up to $500,000
   Fusion (motors up to 5 kw) – Costs and expenses reasonably and necessarily incurred
   Increase Sum Insured by the Consumer Price Index
  Additional Benefits Included in the Sum Insured
   Removal of Debris – Costs and expenses reasonably and necessarily incurred
   Architect and Professional Fees – Costs and expenses reasonably and necessarily incurred
   Government Fees, Contributions or Imposts – Costs and expenses reasonably and necessarily incurred
   Legal Fees – Costs and expenses reasonably and necessarily incurred
   Temporary Protection – between $10,000 and $20,000 per Incident
   Storm Damage to Gates and Fences – Costs and expenses reasonably and necessarily incurred
  Optional Additional Benefits
   Catastrophe cover (Sum Insured increased as a result of a government-declared catastrophe or emergency) – options available up to 30% of Property sum insured

Section 2 – Property Owners Legal Liability

Cover for compensation the Insured becomes legally liable to pay for Personal Injury and Property Damage

• Legal Costs & Expenses – up to 30% of the limit of liability, in addition to the limit of liability
• Liability in connection with the Insured’s ownership of any underground or overhead services, roads, footpaths or bridges that form part of the property at the Situation – included
• Liability in connection with the hire by any person of sporting or recreational facilities owned by the Insured – included
• Includes liability in connection with the application of pesticides, herbicides or fertilizers at the Situation or the Property Insured
• Includes liability in connection with the Insured’s ownership, use, control or possession of garden appliances, wheel chairs and golf buggies that do not require registration by any legislation or competent authority
• Sums Insured available up to $20m

Section 3 – Machinery Breakdown

• Option A – Unspecified Machine(s) driven by motors not exceeding 5HP or 4kW – limit any one incident as specified in the schedule
• Option B – Machines and Boilers and Pressure Plant individually listed and described in the Schedule

Who can help me?

These policies do vary between insurers and they can be fussy with the regions they are prepared to offer these covers in. The best person to ask for the right cover at the best possible price is your Insurance Broker and if you are looking for a good one, then call

CPR Insurance Services – experts who will save you