What is Commercial Property Insurance?

Whether you are a Developer, Property Manager, or Property owner, it is important to ensure you have the most relevant insurance coverage to protect your investments from the many risks affecting Commercial Properties in Australia. The foundation of a Commercial Building Insurance policy is based on Building Insurance (option for Contents Insurance), Rental Income, and Public Liability; however, Commercial Property Insurance has evolved to include a wider scope of cover options, such as:

Machinery Breakdown

Complex coverage for loss or damage to large machinery, plant, and mechanical equipment, with options to include coverage for the resultant business interruption costs.

Lease Incentives

Coverage for the costs required to attract new tenants to a property following a loss, including cash payment, reduction of rent, and additional fit-out expenses.


This covers the expenditure necessary to induce tenants to lease or re-lease a building following reinstatement after a loss (including partial leases) from insured events.

Covers the cost of professional fees for the preparation, presentation and settlement negotiations for various types of large commercial property claims.

Loss of Attraction – Anchor Tenants

Provides coverage option for the loss of rental income or disruptions in normal business operations should a key tenant vacate the premises (ex. A large supermarket in a small suburban shopping centre).

Loss of Attraction – General Area

Coverage for loss of rental income or disruptions in normal business operations if caused by the damage to a property adjacent from the insured property.

Key Areas of Focus in Commercial Property Insurance

Calculating Rental Income

When calculating the annual rental income for a property, one should factor in

1. Indemnity (recovery) Period, consider the following:

  • Time to demolish and rebuild.
  • Time for Council approvals.
  • Time to re-tenant the building
  • Minimum of 24 months recommended, your rental income will be covered for the period you select.

2. Outgoings, which includes parking and utilities.

3. Escalation costs over this period.

Insurer to Value

To ensure a claim is fully paid by the insurer, it is important that the property is valued at its full replacement cost.

We recommend having a professional insurance replacement cost valuation completed every 3 years to keep the value up to date.

An Industrial Special Risk policy provides cover for Buildings and Contents damage and Business Interruption cover by any cause not specifically excluded by the policy. This all-encompassing policy is designed for mid to high-value properties, typically from $5,000,000 upwards.

The Business Package offers protection for small to medium size properties, or small business owners against insured perils stated in the policy wording (fire, theft, vandalism, property damage, water damage, etc ). Typically not as comprehensive as the ISR policy, but can be more price competitive if the property is valued under $8,000,000.

Knowing your Duty to Disclose

It is the legal responsibility of the person applying for insurance to disclose relevant information to the insurer before an insurance quote is accepted and the contract is entered into.

The insurer is within their rights to remove themselves from a policy if they become aware of a risk they did not previously know of.

Please contact us for general advice on your duty of disclosure if clarification is needed.

The Commercial Property insurance market is becoming increasingly challenging.
As insurers become more risk averse and tightening up coverages, owners face price increases and more restrictive terms and conditions.
Watch this short video from KBI’s Commercial Property Insurance broker, Tyson Jeffrey, on what strategies you can do to manage this shift and best prepare for your next renewal.

Why should I contact KBI?

At KBI we have leveraged our networks, strong relationships and our depth of knowledge of the Commercial Property space to customise insurance solutions for Property Owners, Developers and Property Managers. As experts in this area of insurance, we work closely with our clients to understand their unique needs. We approach insurance companies on your behalf to get a range of coverage and pricing options. We present these options through our Commercial Property insurance comparison, highlighting what the insurance covers you for, along with our recommendations for the most relevant insurance product for you. We then secure the insurance that you select and revisit the process annually in an attempt to keep your Commercial Property insurance costs down.

Commercial Property Insurance Team

Account Manager
Khale Richards
Associate Account Broker – Property
Claims Manager
travis kenzle kbi
Managing Director

Commercial Property Insurance Blogs

Commercial Property Insurance Newsletter Sign Up

Want to keep up to date with all our latest Commercial Property news and information? Enter your email to be added to our mailing list.

Commercial Property Insurance Testimonials

Knight Frank Australia

Truly experts in their field, I have no hesitation recommending Travis, Phil and the team at KBI. I trust them implicitly with not only the strata insurance for my investment property but the insurance policies for all the commercial properties I manage. Their superior knowledge and high level of service makes them a pleasure to deal with.

Alex Meneghello
Property Manager

I’ve been working with the KBI team for four years and their service has been excellent. They take the time to answer all my questions and give me great guidance when renewing my policies and making a claim. I would strongly recommend KBI.

Ryan Budge
Property Owner

Lever Property Group

"Since being introduced to KBI, I have found their professionalism to be second to none in the industry. I strongly recommend KBI as the insurance broker of choice regarding Commercial Property Insurance. They know the Commercial sector inside out and operate on a different level to any other broker I’ve worked with. When it comes to service, they always go above and beyond and ensure my clients are provided with the best available insurance options every year - 10/10."

Toby Bridges

Lansbury & Associates

"Being a Property/Strata Manager in a demanding boutique real estate agency my time management is enormously important. Phil and the KBI team offer a solution to outsource the insurance policies for my clients, providing multiple options which allow the Strata Companies to make an informed decision for the best policies for their property. KBI also assist with the processing of claims, recommend trades and services for those unexpected after hours emergencies and at the renewal of existing policies again send through quotes so my clients are offered the best policies in this very competitive market. Their process saves me time and allows me to focus on my clients in other areas. For quality and friendly customer service KBI is a company highly recommended by myself and the agency in which I am employed."

Lisa Myles-Taylor
Property/Strata Manager


"I have been working with the Property Team at KBI for some time now and I wouldn’t hesitate to say that they make my job as a property manager easier. They have always managed to improve the cost and/or the cover on all the policies I have sent through. Their level of service is fantastic, especially the claims process and enquiry response time. I’d recommend Phil Hughes and the team at KBI to anybody who works in the commercial property industry if they have any insurance requirements."

Tami Bennett
Property & Strata Manager

Commercial Property Insurers

Contact Info

Street Address:

Level 18, 140 St. Georges Terrace, Perth, WA, 6000

Postal Address:

PO Box Z5102, St. Georges Terrace, Perth WA 6831

Get in Touch with our Brokers:

Click the button below to find out more about our people, their experience and their accomplishments.

Get in Touch