Specialist insurance brokers for commercial property owners, developers, investors and property managers requiring well-structured and strategically designed insurance programs.
industries
Commercial Property Insurance
- Tailored advice from specialist commercial property brokers
- Risk-based insurance program design and structured placement
- Comprehensive account & claims management
Commercial Property
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Our Focus
Protecting Your Property Assets and Income
We act for private owners, developers, syndicators, trustees, holding companies, property fund managers as well as property management agencies.
Commercial property insurance is not simply a policy purchase. It is a structured risk transfer program designed to protect both the physical asset and the income it generates.
For property owners and managers, exposure extends beyond material damage. Rental income continuity, tenant profile, lease obligations, lender requirements and asset performance all influence how a program should be designed.
A properly structured commercial property program typically includes:
- Building replacement cover
- Rental income protection (Business Interruption)
- Public & Products liability
However, depending on the asset class and risk profile, programs can extend to include more specialised protections.
Extended Areas of Cover
Modern commercial property programs can incorporate:
Machinery Breakdown
Cover for sudden and accidental loss or damage to plant, mechanical services and equipment, with extension to resulting business interruption losses where required.
Inducements
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.
Loss of Attraction – General Area
Protection against loss of rental income where a major tenant vacates as a result of damage and Cover for loss of income where damage to neighbouring property impacts trading conditions or foot traffic.
Claims Preparation Costs
Covers the cost of professional fees for the preparation, presentation and settlement negotiations for various types of large commercial property claims.
Complementary Risk Solutions
Property owners and asset managers are increasingly exposed to liabilities that sit outside traditional material damage policies.
We advise on complementary protections including:
Environmental Liability
Protection against pollution events, contamination liabilities and clean-up costs arising from owned or managed properties.
Investment Managers Insurance (IMI)
Specialist protection for syndicates, property fund managers and asset managers against claims arising from professional services, fiduciary duties, misrepresentation and regulatory exposures associated with managing investor capital.
Management Liability
Protection for directors, officers and entities against claims arising from governance, employment practices, statutory liability and corporate decision-making.
Title Insurance
Cover protecting property owners and lenders against title defects, encroachments, planning breaches and other historical property risks.
Key Areas of Focus in Commercial Property Insurance
01
Rental Income Calculations
Accurate declaration of rental income is critical to ensuring full recovery following a major loss.
When determining the appropriate sum insured, consideration should be given to:
1. Indemnity Period
Demolition and rebuild timeframe
Council and regulatory approvals
Time required to re-tenant the property
In most circumstances, a minimum indemnity period of 24 months should be considered, subject to asset type and location.
2. Outgoings
Recoverable expenses including utilities, rates and statutory charges.
3. Escalation
Allowance for inflation and construction cost increases during the indemnity period.
02
Insurer to Value
Underinsurance remains one of the most significant risks for property owners.
Properties must be insured for their full replacement cost, not market value. Failure to do so may result in the application of average at claim time.
A replacement cost valuation should be conducted by a certified valuer, typically a qualified quantity surveyor, to ensure reinstatement costs reflect current construction rates, demolition, professional fees and compliance upgrades.
We recommend formal insurance replacement cost valuations be undertaken at least every three years, or more frequently in volatile construction markets.
03
Industrial Special Risk (ISR) Policy vs. Business Package Industrial Special Risk (ISR)
An ISR policy provides broad protection for physical loss or damage and business interruption arising from any cause not specifically excluded.
Typically suited to mid to high-value assets (generally from $5 million and above), ISR allows for structured programs, negotiated endorsements and tailored wording enhancements.
04
Business Package Policy
A Business Package provides cover for defined insured perils such as fire, theft, water damage and vandalism.
While often more cost-effective for smaller properties, it is generally more restrictive in scope than ISR and may not suit complex or multi-tenanted risks.
05
Duty of Disclosure
It is a legal obligation to disclose all information that may influence an insurer’s decision to accept the risk or determine the terms offered.
Failure to disclose relevant matters may entitle an insurer to reduce a claim or avoid the policy.
We work closely with our clients during the placement process to ensure disclosure obligations are properly addressed.
why you need commercial property insurance
Why KBI for Commercial Property Insurance?
KBI is a specialist, employee-owned brokerage focused on structured commercial property insurance programs.
We combine deep market relationships with practical property risk expertise to design and negotiate solutions aligned to your asset profile, contractual obligations and income exposure. From initial program structuring through to claims advocacy, we provide clear, strategic advice and hands-on support to ensure your insurance remains aligned with your portfolio objectives.
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Commercial Property
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