01 / The meaning
What it means.
Damage to the business’s own building, contents or equipment is different from alleged liability for damaging a customer’s property. The first usually raises a property insurance question; the second may involve liability cover. Property being worked on, goods in custody and hired equipment can require particular attention because ownership alone does not settle how exclusions or extensions apply.
Not every financial loss involves physical property damage. Corrupted data, defective work requiring correction and lost trading opportunities can raise different issues under different policy sections. Where damage occurs, record what changed, when it was discovered, the suspected cause and the property’s prior condition. Photographs and technical reports may assist, but the insurer still needs to assess the wording and evidence.
02 / Put it in context
A practical example.
Hypothetical example: A plumber’s work allegedly causes water damage to a customer’s cabinets. Repairing the plumbing work and repairing the resulting cabinets may be treated differently. The plumber records the facts and refers the allegation for assessment without assuming both costs are insured.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Identify whose property was damaged and who had custody or control.
- Separate faulty work itself from resulting damage to other property.
- Check the definition, insured cause and relevant property exclusions.
04 / Start a useful conversation
A question for your broker.
Is this damage to our own asset, property we hold or someone else’s property?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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