Commercial landlord insurance protects the building and rental income for the property owner. Business Pack Insurance protects the tenants contents, stock, and equipment. Commercial landlord insurance covers the building and owner’s financial interests, while Business Pack Insurance protects the tenant’s assets; both are commonly held together to ensure comprehensive coverage.
Difference between commercial landlord insurance and business pack insurance
For the purposes of this article, the term business pack insurance refers to insurance coverage designed to protect the contents, equipment, stock, and business operations within a commercial property. Commonly known by other names such as business property cover, or business contents insurance, we will use business pack insurance consistently throughout this article to maintain clarity.
If you own, manage, or lease a commercial property, insurance can seem confusing. The terms commercial landlord insurance and Business Pack Insurance mean different things. Knowing the difference helps you pick the right protection whether for the building you own or the business you run in a leased space.
This guide explains these cover types in simple language, with examples to show where each fit.
Key differences at a glance
Feature |
Commercial landlord insurance |
Business pack insurance |
Who its for |
Property owners, rental portfolio managers, owners of retail, office, or industrial buildings |
Business tenants, businesses operating in commercial spaces, businesses owning assets, equipment, or stock |
What it covers |
Building structure, landlord’s fixtures, loss of rent, liability for property ownership |
Business contents, stock, equipment, theft, accidental damage, liability for business operations |
Loss of rent coverage |
Yes |
No |
Liability cover |
For property ownership risks |
For business activities and premises |
Protects tenant’s assets? |
No |
Yes |
What you should know about commercial landlord insurance and business pack insurance
Commercial properties face daily risks such as storms, fire, theft, accidental damage, or malicious damage. These can interrupt rental income or affect the business inside.
Landlords and business owners have different responsibilities, so they need different insurance.
- Commercial landlord insurance protects the building and the owners financial interests.
- Business pack insurance protects the businesss assets, contents, and stock.
Both are important but not interchangeable.
Understanding commercial landlord insurance
Commercial landlord insurance is designed for people or organisations who own commercial buildings and lease them to tenants.
It protects the building itself and the owners income stream. Cover can include:
- Building damage: Damage from fire, storms, accidental events, or malicious damage. This aligns with the building cover shown in the Marsh commercial property insurance offering.
- Contents owned by the landlord: Fixtures or fittings that belong to the landlord, such as carpets or fixed cabinetry.
- Loss of rent after an insured event: If the building becomes unusable after an insurable event, rental income may be interrupted.
- Liability risks associated with property ownership: For example, if someone is injured in common areas managed by the landlord.
Commercial landlord insurance generally does not cover the tenants equipment, stock, or business contents.
Understanding business pack insurance
Business Pack Insurance supports the business operating inside the building, regardless of whether the business owns or leases the premises.
It helps protect the assets the business relies on each day. This may include:
- Contents and stock damage: Items such as glass, stock, furniture, machinery, and indoor fittings. The Marsh Business Pack Insurance page outlines this clearly as a core part of the cover.
- Theft following forced entry: Loss of contents or stock after a break-in.
- Fire and insurable perils: Damage from storms, fire, and other insurable events.
- Accidental damage: Sudden and unexpected physical damage to business assets.
Business interruption
Business interruption cover helps protect a tenants income if their operations are disrupted by an insured event, such as fire or storm damage. It compensates for lost earnings during the period the business cannot operate, helping maintain financial stability.
Public Liability
Public liability insurance protects both landlords and tenants against claims if someone is injured or property is damaged due to business activities or property ownership. For landlords, it covers common areas and building-related risks; for tenants, it covers risks related to their business operations. This cover helps manage legal and compensation costs arising from third-party incidents.
These protections focus on business operations rather than the building itself.
Why this difference matters
If you own the building but lease the premises as an owner, commercial landlord insurance helps you meet your responsibilities, protect your asset, and stay compliant with lease obligations.
If you run a business inside the building, Business Pack Insurance helps protect your day-to-day operations.
Many incidents affect both the landlord and the tenant, but the financial impact is different for each party. Separating responsibilities helps avoid gaps in protection.
Where the covers overlap
Both policies can apply to the same incident but respond to different parts of the loss. For example:
- A fire damages the building (covered by commercial landlord insurance)
- The business loses equipment and stock (covered by Business Pack Insurance)
- Temporary closure affects business turnover (covered by business interruption, if selected)
This separation ensures that each party protects what theyre responsible for.
What each cover usually does not include
Commercial landlord insurance generally does not cover:
- The tenants stock or equipment
- Damage caused by poor maintenance
- Gradual wear and tear
Business pack insurance generally does not cover:
- Structural building damage (unless the business owns the building)
- Loss of rent to the landlord
- Issues caused by poor upkeep or unreported hazards
Always check the relevant Product Disclosure Statement (PDS) to understand exclusions and policy terms.
What to consider when choosing the right cover
- If youre a property owner: Think about building risks, tenancy risks, and your reliance on rental income.
- If youre a business owner or tenant: List the equipment, stock, and systems your business depends on. Consider how you would keep operating if they were damaged.
Frequently asked questions
Yes. Tenant cover protects their assets only. It does not cover the building, common areas, or rental income, which landlord insurance protects.
Often, yes. Landlord insurance covers the building, while Business Pack Insurance protects your business assets. Your needs depend on how responsibilities are structured.
No. Business Pack Insurance protects contents and equipment. Building insurance covers structural damage to the property.
Coverage depends on the policy and circumstances. Some accidental damage may be covered, but deliberate or illegal acts are usually excluded.
Typically, it covers contents, stock, glass, accidental damage, theft after forced entry, and damage from insurable perils like storms or fire.
No. Business interruption cover protects the tenants business operations and must be purchased separately by the tenant.
There is no universal legal requirement, but many leases and local councils mandate certain insurance covers. Always check your lease terms.
Fixtures owned by the landlord, such as fixed cabinetry or carpets, are usually covered. Tenant-installed items are generally covered under Business Pack Insurance.
Most policies require forced entry for theft claims, but this varies by insurer. Check the Product Disclosure Statement (PDS) for details.
Some accidental or malicious damage by tenants may be covered, depending on the policy. Damage from wear, ageing, or poor maintenance is usually excluded.
Yes. Each party faces different risks. Landlord insurance protects the property asset; Business Pack Insurance protects the tenants operations.
Public liability insurance covers legal costs and damages if someone is injured or property is damaged due to your business activities. It is essential for both landlords and tenants to consider.
Business interruption insurance compensates for lost income if your business cannot operate due to an insured event, such as fire or storm damage.
Yes. Insurance policies can often be tailored with additional covers or endorsements to address unique risks related to your property or business operations.
References
Australian Government, "Manage your business insurance", https://business.gov.au/risk-management/insurance/manage-your-business-insurance, accessed 23 March 2026.
Marsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238369) (“Marsh”) arranges the general insurance (i.e. not the Discretionary Trust Arrangement) and is not the insurer. This page contains general information and does not take into account your individual objectives, financial situation or needs. For full details of the terms, conditions and limitations of the covers, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh on request. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). Any advice or dealing in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226 827) (“JLT”). JGS and JLT are businesses of Marsh McLennan. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions.
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