What is Commercial Landlords Insurance?

As the name would suggest, this type of insurance has been specifically designed for owners of commercial investment properties. 

As a commercial landlord, you want to ensure your investment is protected. With a commercial landlords insurance policy, you can cover your:

  • Commercial Fit out
  • Contents if you own a Furnished Suite or Store
  • Rental Income for Loss of Rent following damage and Rent Default by your tenant
  • Legal Liability for damage or injury occurring inside your suite or unit
  • Glass in tenanted areas in the event of damage to your suite between tenants or if your tenant hasn't correctly arranged glass insurance and you are responsible for glass damage in your suite.
  • Defence costs in the event of an alleged workplace health & safety breach inside your suite
  • Tax Audit costs in the event of a Tax Audit relating to your commercial investment



Whilst your Body Corporate / Owners Corporation Strata Plan policy will provide protection for the common property, in many cases it doesn't provide full protection for your investment. As the lot owner, you are responsible for your fittings and what happens inside your lot.


Doesn't the Strata Insurance cover my Unit?

Unfortunately, in many cases commercial investment owners rely solely on the Strata Insurance provided by the Body Corporate or Owners Corporation. It is important to recognise that in most cases you as the lot owner are responsible for your unit's fixtures and fittings (like bathrooms & kitchens or commercial fit outs in the case of a commercial unit) and for any injury or damage that occurs inside your suite.

The Strata Insurance policy is designed to protect the common interest and not your individual needs.


Our Strata Insurance covers Loss of Rent and Lot Owners Fixtures, Why do I need more cover?

In some cases you dont need extra cover for the fitout or fixtures and in other cases you will. Let's say your owners corporation has cover for $250,000 lot owners fixtures and fittings within the strata plan and you estimate your fixtures to be worth $75,000; would you need another policy? Maybe not for fixtures, but what about loss of rent, rent default, or your lot owners legal liability inside of your suite?

In most cases these are not covered by Strata Insurance, and where they are covered, such as loss of rent, the cover is shared accross all lot owners meaning that you may not have the protection that you thought you had at the time when you need it most.

Arranging a policy of your own provides you with greater certainty about the type of cover you have for your investment property.


I have a business insurance package, is that the same?

No. Business Insurance packages are designed with business owners in mind. This is great if you own and occupy the premise, but it isnt designed for commercial landlords who rent out their investment property.

In some cases, a commercial landlords insurance policy may not be available due to the tenancy type, the construction or age of the premise, or some other underwriting decision, in that case a business package is better than no option; but a business package in most cases will not provide cover for Rent Default, Glass in a tenanted area or eviction costs of a tenant.