Commercial Strata Insurance Specialists
Tailored Protection for Complex Commercial Properties
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GET A STRATA QUOTE
Complete the form to request a QUOTE. Call us at 1300 900 207 for an immediate response.
What Is Commercial Strata Insurance?
Commercial strata insurance covers the building and shared property of a strata-titled scheme where the lots are used for commercial purposes, office buildings, retail complexes, industrial units, and mixed-use developments with a significant commercial component. It’s arranged by the owners corporation or body corporate on behalf of all lot owners, not by individual tenants or lot owners themselves.
Coverscope works with owners corporations, body corporates and property managers to arrange this cover, backed by over 25 years of experience.
Which Strata Product Is For You?
| Residential Floor Space | Commercial Floor Space | Typically Falls Under |
|---|---|---|
| 80% or more | Up to 20% | Residential Strata |
| Less than 80% | More than 20% | Commercial Strata |
This is a general guide only, some insurers apply a different split, or assess mixed-use schemes on a case-by-case basis.
What Does Commercial Strata Insurance Cover?
- Property Damage: Covers the building and common property against fire, storm, flood, theft, vandalism, impact or accidental damage.
- Public Liability: Covers legal liability for injury or property damage on shared commercial property, standard limit up to $20 million.
- Theft: Covers loss of common property contents and equipment from break-in or burglary, separate from the building’s material damage cover.
- Business Interruption / Loss of Rent: Covers lost rental income when premises become unusable due to insured damage, particularly important where the scheme’s income depends on continued tenancy.
- Office Bearers’ Liability: Covers committee members personally against claims tied to their management decisions, written on a claims-made basis.
- Fidelity Guarantee: Covers money that goes missing through fraud while an office bearer or building manager was personally holding it for the scheme.
- Machinery Breakdown: Covers plant essential to commercial operations, lifts, HVAC, security gates and escalators.
- Legal Expenses: Covers legal costs for day-to-day disputes not covered by the main policy sections.
- Government Audit Costs: Covers legal and professional costs responding to a government audit or investigation.
- Catastrophe Cover: Additional rebuilding funds after a declared disaster, helping offset increased construction costs.
- Glass Breakage: Covers fixed glass on common property, including shopfronts and foyers.
Who Is Commercial Strata Insurance For?
- Office buildings with multiple lot owners
- Retail complexes and shopping centres under strata title
- Industrial and warehouse units within commercial schemes
- Mixed-use buildings with a significant commercial component
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Mixed-Use Buildings Sit Between Two Products
A building with both residential and commercial lots doesn’t automatically fall under one product or the other, the split usually comes down to the proportion of floor space used for each purpose. This isn’t a one-time classification either, a change in that floor space mix, or a change in the type of business occupying a lot, is typically something you’re contractually required to notify your insurer about, not something to leave until renewal. If your scheme is genuinely mixed-use, it’s worth confirming which product actually applies and staying on top of it as tenancies change, our Strata Insurance page covers the residential side and the state-by-state legislative detail in full.
Office Bearers' Liability Protects Volunteers, Not the Scheme
Committee members are usually volunteers making real decisions, approving budgets, awarding contracts, managing disputes, without professional training in governance or the legal exposure that comes with it. Office Bearers’ Liability protects them personally, but it’s written on a claims-made basis, meaning it only responds to a claim first made during the period the policy is active, not necessarily when the decision was actually made. A gap in cover, or switching insurers without care, can leave a past decision unprotected even if it was properly insured at the time.
Loss Of Rent Is Tied Directly To Continued Tenancy
A commercial scheme’s income depends on continued tenancy, so damage that makes a unit unusable doesn’t just cost repair money, it costs the rental income the scheme was relying on. Business Interruption / Loss of Rent cover exists specifically for this gap, and it’s worth checking your indemnity period reflects how long a genuine rebuild or re-tenanting would actually take, not just the physical repair time.
Fidelity Guarantee Covers a Risk Few People Think About
Strata funds are usually managed by a strata manager or committee member, not a professional custodian of money, and fraud is a real, if uncomfortable, risk to plan for. Fidelity Guarantee responds specifically when money was in an office bearer’s or manager’s own hands, acting for the scheme, separate from the property and liability sections that respond to physical damage or third-party claims.
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Our team continues to work remotely but you are welcome to arrange an appointment with one of our consultants.
Find The Right Cover
Complete the form to request a QUOTE. Call us at 1300 900 207 for an immediate response.
Commercial Strata Cover Types Explained
Property Damage
Covers the building and common property against fire, storm, flood, theft, vandalism, impact, explosion, earthquake or accidental damage, on a reinstatement basis reflecting the actual cost to rebuild.
Public Liability
Covers legal liability for injury or property damage arising on shared commercial property, up to $20 million as standard, this is the cover most commercial tenants and lenders will expect to see in place.
Theft
Covers loss of contents, fittings and equipment on common property from a break-in or burglary, a distinct trigger from general material damage, which responds to accidental or weather-related loss instead.
Business Interruption / Loss of Rent
Protects the scheme’s income when premises become unusable due to insured damage, covering lost rent or the ongoing costs of running the building while repairs take place.
Office Bearers' Liability
Covers committee members personally against claims tied to their management decisions, written on a claims-made basis, so it responds to when a claim is made, not when the decision was made, meaning continuous cover matters. It doesn’t extend to fraud, criminal acts, circumstances already known before the policy started, an intentional decision not to maintain required insurance, or claims that belong under the main strata policy (building defects) or public liability (injuries in common areas) instead.
Fidelity Guarantee
Responds if scheme funds go missing through fraud, specifically money that was in an office bearer’s, committee member’s, or building manager’s own hands at the time, acting for the scheme rather than any personal transaction, a distinct risk separate from third-party liability or property damage.
Machinery Breakdown
Covers plant and equipment essential to commercial operations, lifts, HVAC systems, security gates and escalators, if they fail unexpectedly.
Legal Expenses
Covers legal costs for day-to-day disputes the scheme may face that aren’t covered by the main policy sections, giving the committee somewhere to turn for legal advice without an unplanned cost.
Government Audit Costs
Covers legal and professional costs incurred responding to a government audit or investigation into the scheme’s affairs.
Glass Breakage
Covers fixed glass on common property, shopfronts, foyers and display windows, against accidental breakage.
Catastrophe Cover
Provides additional rebuilding funds specifically for use after a declared natural disaster, when construction costs across an entire region can spike due to sudden demand.
What's Not Covered By Commercial Strata Insurance?
- Tenant Contents and Fit-Out: A tenant’s own fixtures, stock, and business contents sit outside the scheme’s policy, that’s the tenant’s own responsibility to insure.
- Wear and Tear: Gradual deterioration of the building or common equipment through normal use.
- Undeclared Alterations: Structural changes or additions made to common property without being disclosed to the insurer.
- Individual Lot Owner Liability: A lot owner’s personal liability for something happening inside their own tenancy sits outside the scheme’s cover.
- Flood, In Some States: Flood cover isn’t always automatically included; ask your Coverscope broker to confirm whether it’s included.
- Asbestos: Treatment varies by insurer; some exclude it outright, others will consider cover with a current asbestos report or management plan in place. Ask your Coverscope broker what your scheme needs to provide.
What does it mean that Office Bearers' Liability is "claims-made"?
It means the policy responds based on when a claim is first made against a committee member, not when the decision itself was made. Practically, this means continuous, unbroken cover matters, a gap in cover or an insurer switch handled carelessly could leave a genuinely covered past decision unprotected if a claim only surfaces later.
What happens if my building is mixed residential and commercial?
The proportion of floor space used for each purpose usually determines which product applies. Ask your Coverscope broker to confirm this directly rather than assuming, since getting it wrong can leave a scheme under-insured or holding the wrong type of cover.
Who arranges commercial strata insurance?
The owners corporation or body corporate is legally responsible, in practice this is often managed by an appointed strata manager or broker acting on the committee’s instructions.
What is commercial strata insurance?
Cover for the building and shared property of a strata scheme used for commercial purposes, arranged by the owners corporation or body corporate on behalf of all lot owners, not individual tenants.
Does commercial strata insurance cover car parks and parking spaces?
Common property car parks, driveways and shared parking structures are covered like any other common area. But if a car space is titled as part of an individual lot rather than common property, it’s treated like the rest of that lot, a vehicle parked there or anything stored in it sits outside the strata policy, that’s the owner’s own responsibility.
Get in Touch
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Suite 10B, Level 10, 2 Corporate Court, Bundall QLD 4217
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PO Box 7005, Mount Crosby QLD 4306
Our team continues to work remotely but you are welcome to arrange an appointment with one of our consultants.
Please complete the form to submit an enquiry.
