Commercial city buildings

Commercial Buildings Insurance

Comprehensive protection for your business property. NOT covered by EQC.

Critical: Commercial Buildings Are NOT Covered by EQC

The Earthquake Commission (EQC) only provides cover for residential and farm buildings. Commercial buildings must rely entirely on private insurance for protection against earthquakes, floods, and other natural disasters.

This makes buildings insurance not just recommended—it's essential for any commercial property owner.

Why Commercial Buildings Insurance Matters

No EQC Coverage for Commercial

EQC only covers residential and farm buildings. Commercial properties are entirely dependent on private insurance for natural disaster protection.

High Asset Protection

Commercial buildings often house expensive equipment, stock, and fixtures. Insurance protects against structural damage and business interruption.

Liability & Legal Compliance

Public liability risks are significant. Comprehensive insurance protects against third-party claims and meet legal requirements.

Business Continuity

Add business interruption cover to protect your income if your premises becomes uninhabitable due to insured damage.

What's Covered in Commercial Insurance

Building structure (walls, roof, foundation)Covered
Permanent fixtures and fittingsCovered
Landlord's fit-out and improvementsCovered
Shop fronts and signageCovered
Interior decorations and finishesCovered
Glass and glazingCovered
Air conditioning and HVAC systemsCovered
Security and alarm systemsCovered
Tenant's stock and merchandiseNot Standard
Business interruption (optional add-on)Covered
Material damage and lossCovered
Permanent structures (carparks, outbuildings)Covered

Note: Most policies offer optional add-ons for items like glass breakage, signage, and business interruption. Review your policy for specific inclusions, exclusions, and limits.

Coverage by Commercial Building Type

Building TypeFeaturesPremium FactorKey Considerations
Office BuildingStandard construction, open plan, multi-levelModerate–HighLocation and security features affect premium
Retail ShopShop front, customer access, display windowsModerate–HighBusy locations and night security are key
Warehouse/StorageLarge open space, racking systems, climate controlHighStock value and contents affect rates significantly
Industrial BuildingHeavy machinery, manufacturing, hazardous materialsVery HighSpecialised cover required; machinery may need separate policy
Hospitality (Cafe/Bar)Kitchen, customer seating, licensed areaHighCommercial kitchen requires specialist cover
Medical/ProfessionalMedical equipment, specialist fit-outHighEquipment insurance separate from buildings

Key Considerations for Commercial Buildings

Building Valuation

Get a professional valuation of replacement cost including structure, permanent fixtures, and any fit-out improvements. Undervaluation leaves you exposed.

Business Interruption Insurance

If your business depends on operating from this location, consider business interruption cover to protect your income during repairs.

Stock and Contents Insurance

Buildings insurance covers the structure and permanent fixtures, not your stock, merchandise, or equipment. Get separate contents cover.

Material Damage & Loss

Ensure your policy covers all types of material damage including fire, theft, weather damage, and vandalism.

Public Liability

Separate public liability cover protects against third-party injury claims. Often required by landlords and regulatory bodies.

Natural Disaster Risk

Commercial buildings are NOT covered by EQC. Your buildings insurance must include comprehensive earthquake, flood, and landslide protection.

Commercial Claims Process

1

Report immediately

Contact your insurer within 48 hours of discovering damage.

2

Document everything

Photograph all damage, secure the premises, and prevent further loss.

3

Mitigating actions

Take reasonable steps to prevent further damage (e.g., tarps, temporary repairs).

4

Loss assessor

Your insurer appoints a loss assessor to evaluate damage and estimate repair costs.

5

Claim settlement

Settlement by direct repair, rebuilding, or cash payment (less excess and agreed limits).

6

Ongoing support

Track claim progress through online portal; complex claims may take 8–12 weeks.

Commercial claims can be complex due to stock assessments and business interruption calculations. Choose an insurer with a strong commercial claims team.

Premium Estimates (Annual)

Small office (up to $500k)

$1,500–$2,500/yr

Estimate based on standard construction

Retail shop ($500k–$1M)

$2,000–$3,500/yr

Estimate based on standard construction

Warehouse ($1M–$2M)

$3,000–$5,000/yr

Estimate based on standard construction

Large industrial building (2M+)

$5,000–$10,000+/yr

Estimate based on standard construction

Note: Premiums vary significantly based on building age, construction, location, security features, claims history, and occupancy type. Get a professional valuation and quotes from multiple providers.

Protect Your Commercial Property

Get a customised quote for your commercial building. Our specialists understand the unique risks facing NZ businesses.

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Key Facts

  • NOT covered by EQC
  • Essential for business continuity
  • Often required by landlords
  • Premium depends on building type
  • Business interruption add-on available

Don't Underinsure

Many commercial property owners underestimate replacement costs. Get a professional valuation to ensure adequate cover.

Underinsurance can leave you significantly out of pocket during a major claim.

Expert Guidance

Our commercial specialists can help you understand complex coverage options.

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