Fergusons Insurance Brokers

39B Davey St Frankston, Victoria
Phone: (613) 9783-3200

Fergusons has been providing the ENZED Franchising network with insurance cover since 1982, when ENZED commenced franchising in Australia…

-  Dennis Johnson

   ENZED Franchise Manager

   Emergency After Hours

   0409 411 235

Commercial Property (Fire, Storm, Flood, Burglary)

Commercial Property Insurance is distributed/ marketed via a number of different names;

  • Fire & Nominated Perils
  • Property Insurance
  • Business Pak Insurance
  • Burglary Insurance
  • Glass Breakage Insurance
  • Industrial Special Risks Insurance (Refer to separate information page for this policy)

Unlike your domestic householders insurance where fire, water damage, burglary, glass breakage and electric motor breakdown risks are automatically included, with commercial property insurance you need to effect separate covers and pay a premium for each risk.

The cover provided by fire and nominated perils or property insurance is generally damage as a result of fire, lightning, storm and tempest, rainwater, fluid leaking from pipes, explosion, malicious damage, riots, civil commotions, earthquake, impact, accidental damage.  Flood cover can be added but Insurers will normally charge an extra premium for flood cover.

Note flood damage is generally defined as water escaping from rivers, creeks, canal, natural waterways, lakes, dams, reservoirs. Flood is not an accumulation of rainwater entering your premises (all insurers will generally include cover for rainwater). Should you feel that you may have an exposure to flood (as defined above), please contact your broker and they can provide you with quotation for flood cover.

Before selecting your sum insured for buildings (definition includes fences, gates, outbuildings, underground services, bitumen, concrete, sealed surfaces), stock, plant machinery and other contents, you should understand the co-insurance clause or underinsurance clause and its implications should you choose to underinsure.

Buildings are insured on a replacement basis so sum insured must represent replacement value.

Plant machinery and all other contents is also insured on a replacement basis (provided you purchased items new) and again sum insured should represent replacement value.

Stock sum insured should represent value shown in your accounting books and records – not replacement value.

Co-Insurance requires you to select a sum insured of at least 80% (percentages can vary depending upon quality of product you purchase) of the basis of settlement – should you choose not to insure within the 80% of the full value, insurers can reduce any claims by percentage of underinsurance.

When selecting your sums insured you should also ensure your insurer automatically includes additional provision for removal of debris, extra costs of re-instatement, rebuilding fees and costs, catastrophe, firefighting costs, unpacking expenses, seasonal increase of stock extension and temporary removal.

Burglary Insurance – Defined as theft as a result of forcible and violent entry to a building at your nominated location/ situation. Unlike fire and nominated perils or property insurance you do not have to insure for full value. You select a sum insured that you feel is sufficient to protect you should thieves target your locked premises. In some circumstances as little as $5,000 or $10,000 may be an adequate sum insured. Please note theft of money, cash negotiables, does not fit within burglary policy and a separate money insurance cover should be effected if you feel you have an exposure to a loss of cash.

Glass Breakage – probably does not need a lot of explanation other than breakage must be through entire thickness of glass. Glass breakage policies will also include costs temporary shuttering and any signwriting costs. Most commercial leases require tenants to insure glass breakage or to reimburse landlords for the cost of glass breakage cover.

Business Interruption or Loss of Profits Cover, refer to seperatate Business Interruption page under the Business Insurance heading.