Industrial Property Insurance
Industrial property insurance, also called commercial property insurance, protects businesses and organisations against financial losses to their physical assets, such as buildings, equipment, inventory, and other property used in their industrial operations.
Industrial property insurance covers various perils, including fire, theft, vandalism, natural disasters (such as storms, floods and earthquakes), explosions, and other unforeseen events that can cause damage or destruction to the insured property.
Industrial property insurance is relevant for businesses and organisations across various industries that own or operate physical property. Manufacturing companies, warehousing and logistics companies, construction companies, retail and wholesale businesses, and IT companies should consider industrial property insurance. This insurance is suitable for Educational Institutions, the healthcare sector and the hospitality sector, such as hotels, restaurants and event venues.
These Businesses with physical assets need to consider industrial property insurance to protect against potential property damage, loss, or liability. Lifecycle Fire and General are insurance brokers who can assess your risk and offer you an insurance plan to cover all your assets.
The market size, measured by revenue, of the Commercial Property Operators industry is $27.9bn in 2023.
The market size of the Commercial Property Operators industry in New Zealand has grown 2.4% per year on average between 2018 and 2023.
The market size of the Commercial Property Operators industry in New Zealand increased faster than the Rental, Hiring and Real Estate Services sector overall.
The specific types of coverage available may vary depending on the insurance provider and policy, but here are some common types of industrial property insurance covers
- Building Coverage: This type of coverage protects the insured’s physical structures, including manufacturing plants, warehouses, offices, and other buildings used in their industrial operations. Any damages caused by fire, theft, vandalism, storms, and natural disasters get coverage.
- Contents Coverage: Contents coverage protects the contents within the insured property, including machinery, equipment, furniture, inventory, stock, and other tangible assets used in the business. It provides coverage against damage or loss resulting from covered perils.
- Business Interruption Coverage: Business interruption coverage compensates the insured for the loss of income and additional expenses incurred due to a covered event that disrupts business operations. It assists in covering ongoing expenses and replacing income loss during the interruption period, including rent, employee pay, and other fixed costs.
- Equipment Breakdown Coverage: This coverage protects against the cost of repairing or replacing equipment and machinery due to mechanical breakdown, electrical failure, or other covered perils. It can include coverage for repair costs, replacement costs, and business interruption losses caused by equipment breakdown.
- Extra Expense Coverage: Extra expense coverage provides reimbursement for additional expenses incurred by the insured to minimise business interruption or continue operations after a covered loss. It covers costs such as renting alternative facilities, purchasing temporary equipment, or outsourcing operations during the restoration period of the building.
- Inland Marine Coverage: Inland marine coverage protects goods and equipment in transit or temporarily stored off-site. It provides coverage for the property while it is in transit, loaded or unloaded, or in temporary storage during transport.
The specific coverage and policy terms can vary depending on the insurance provider and policy, but here are some key aspects typically covered under industrial property insurance
- Coverage for the insured’s inventory or stock of raw materials, work-in-progress, and finished goods. It covers replacing or repairing the cost of damage or content lost resulting from covered perils, such as fire, theft, or natural disasters.
- Coverage for loss of income resulting from damage or loss of property. This coverage compensates the business for the revenue loss due to unwanted incidents.
- Additional coverage options or endorsements for goods in transit, equipment breakdown, pollutant cleanup, or liability protection for third-party property damage.
- Fee reimbursement for architects, surveyors, and engineers who assist with building alterations and temporary stock removal.
- Covers the loss of perishable goods due to equipment failure, power outage, or temperature-related issues, especially in the food processing, cold storage, or perishable goods industries.
- Removal coverage for the cost of removing debris after a covered loss, such as cleaning up and disposing of damaged materials following a fire, storm, or other destructive event.
Industrial property insurance does not offer coverage
- For perils or events, such as acts of war, terrorism, nuclear accidents, or intentional acts of the insured.
- For damage resulting from wear and tear, gradual deterioration, or lack of proper maintenance.
- For business losses that are not relevant to property damage. It includes loss of market share, loss of customers, or other indirect financial losses not resulting from physical damage to the insured property.
- For intangible assets such as intellectual property, patents, trademarks, copyrights, or trade secrets.
- For Pollution-related damages or environmental liabilities.
Lifecycle Fire and General can help business organisations to protect their valuable assets by offering a suitable Property Insurance Plan. It has several benefits for businesses and organisations.
We are experts in offering coverage options, limits, and deductibles that align with their unique property, operations, and risk profiles. Our customising plan ensures that the insurance coverage is adequate and aligns with the needs of an organisation.
Having industrial property insurance provides peace of mind to business owners and stakeholders. It lets them focus on their core operations without worrying about unexpected property-related risks. Without any delay, contact LIfecycle Fire and General to discuss your requirements.