Commercial Strata
Commercial Strata Insurance provides cover for commercial buildings under a strata title, ranging from retail shops through to multi tenanted industrial sites.
Sourcing Strata Insurance policies for commercial, industrial and mixed tenancy strata buildings can be difficult due to the varying business activities of the occupants.
Buildings or lots that are deemed to be hazardous by insurers, such as manufacturers that use chemicals or plastics, need to be marketed to insurers or underwriting agencies that are experts in multi-occupancy properties as they have the ability to underwrite properties with occupants of varying professions.
Whitbread’s dedicated Strata Insurance Brokers have a depth of knowledge and experience that enables them to assess and market your property to ensure you are comprehensively protected.
Below are some of the more common insurance policy features, however, the list is not exhaustive and some features may not be offered by certain insurers. Please refer to the insurer-specific policy wording for inclusions, exclusions, terms and conditions.
Covered Features
Building Replacement & Reinstatement
Provides cover for the building structure and any fixtures and fittings in Common Property areas.
Public Liability
Covers the legal liability of the Owners Corporation. This does not insure the liability of the unit owner, except where liability relates to the Owners Corporation’s property or common contents.
Common Contents
Covers appliances, equipment, furniture, fittings and works of art in any common area for which the Owners Corporation is responsible.
Personal Accident for Voluntary Workers
Provides compensation to any person who voluntarily works on behalf of the Owners Corporation. The volunteer worker’s name must be recorded in the books of the Owners Corporation.
Loss of Rent and/or Alternative Accommodation
If a unit becomes uninhabitable as a result of an insured peril, the unit owner can claim for loss of rent or alternative accommodation during the period that the premises are unfit for occupancy, based on the rental value of a unit.
Fidelity Guarantee
Protection for the Owners Corporation against fraudulent embezzlement or fraudulent misappropriation of the Owners Corporation’s funds and tangible assets.
Office Bearers
Protects the members of the committee where liability has arisen from an alleged or wrongful act, omission or breach of duty. Covers the liability and legal costs up to the sum insured. Fraudulent acts are not insured under this insurance policy. This is an optional cover and an additional premium will apply.
Machinery Breakdown
Provides cover for sudden or unforeseen physical destruction/damage to machinery. This is an optional cover and an extra premium will apply.
Catastrophe
Provides an additional sum where the building is considered a total loss or partial loss due to catastrophe where a state of emergency is declared such as an earthquake, bushfire, tsunami or cyclone. NB: Coverage varies for this feature. Some insurers provide automatic catastrophe cover (e.g. 15% of building sum insured), while others will charge a premium to offer a selected percentage of the sum insured (e.g. 15% or 30%). Catastrophe cover is a specialised policy feature and should be discussed by the Owners Corporation if protection has not been purchased.
Specialist
Lia de Sousa
Commercial Strata
FAQ's:
Commercial Strata Insurance generally covers material damage as a result of insured peril to structural fixtures including fixed plant, machinery and underground services. This policy also provides cover for proprietors’ fixtures, fittings and improvements which form part of the building.
Commercial Strata Insurance specifically excludes contents within individual lots such as carpets, curtains, blinds, light fittings and electrical appliances not actually wired into the premises. These items should be insured by your Business Insurance policy.
The law requires that buildings are insured for full replacement and reinstatement value. Whitbread recommends that you obtain a professional valuation.
The flood definition has been standardised for all ‘retail’ products which includes residential strata. Refer to your insurer’s Product Disclosure Statement for a full definition.
Strata Insurance policies do provide storm cover but generally do not automatically provide flood cover. Flood cover may be requested by strata owners, however insurers will assess their willingness to offer flood cover based on the location of property and the proximity of rivers, lakes and dams. This extension of cover, if granted, will attract an additional premium.
Commercial Strata property owners need to purchase Commercial Property Owners Insurance as a separate policy to the Strata Insurance. Commercial Property Owners Insurance provides insurance protection for your liability as a Landlord, together with property owner’s fixtures and fittings and other benefits.
As an owner occupier of a unit, you will need to arrange a separate Business/Trade Insurance policy to cover your business. This policy can provide legal liability protection for any third party injuries or damage to third party property that you may be held liable for anywhere in Australia, together with cover for your business contents, stock in trade, money, machinery etc.
