Material Damage

Material Damage

Covers your commercial buildings, contents, fixed plant and stock, growing structures, money or growing plants and portable plant and equipment as shown on your certificate.

What we cover

The FMG Material Damage automatically includes these covers and benefits.

You can select cover for accidental loss to your commercial buildings, contents, fixed plant and stock.

There’s also the option of limiting your accidental loss cover to defined events listed in the policy wording, or to fire only. Check the policy for the full list and to see what additional benefits are provided by this cover.

Cover for your growing structures for accidental loss caused by a defined event, excluding a flood.

You can select cover for your money, including other people’s money that’s under your control, is covered for accidental loss in some circumstances including when it’s held at your premises, in transit, or at your, or your employees, dwelling.

Cover for accidental loss anywhere in New Zealand to portable plant and equipment used for your business.

Insures your plants in growing houses for accidental loss caused by a defined event, or smoke from a faulty furnace used at the premises, or water leaks, or overflows from any water system in the building.

Covers your grape plants, olive trees and/or live shelter belt plants for accidental loss caused by fire, lightening or explosion.

Additional cover

The following Additional Benefits are automatically included in your policy.  

Cover for additional buildings, machinery or plant you purchase or have built, as well as additions, alterations or improvements to existing buildings, machinery or plant, up to $100,000.

Covers up to $10,000 for professional help, for example an accountant, to prepare and present your claim. 

Covers you up to $10,000 for accidental loss to your customers’ goods at the premises, if they’re not insured elsewhere. You can choose to set a higher limit.

Up to $10,000 cover for accidental loss to electric motors and starters under 7.46kW, and distribution switchboards and electrical reticulation, caused by the failure of electrical insulation, abnormal current or electrically induced self-heating.

For policies effective from 1 July 2019, we have extended cover for motors, pumps, electrical equipment and mechanical equipment under this automatic benefit. Cover up to $15,000, and includes any reasonable additional costs (e.g. lifting and lowering, overtime charges and refrigerated replacement).

Covers your employees’ personal belongings, including tools of trade, while at the premises or being used by them on the job anywhere in New Zealand, for accidental loss. Cover is up to $2,000 for any one employee, and up to $5,000 for any one event. You can also choose a higher level of cover.

We’ll cover your additional and reasonable costs, up to $2,000, for express freight and overtime labour if it’s needed to speed up the reinstatement of your commercial property after a loss.

Up to $5,000 of cover for accidental loss to your forklifts, fork hoists, or fork trucks provided they are not registered to travel on public roads.

Covers up to $3,000 of cover for the spoilage of frozen goods stored in chambers at your premises, provided this was due to a loss under the Electrical Breakdown benefit causing a change in temperature. 

Marine insurance cover for General Average and Salvage charges that you may need to pay in accordance with a contract of carriage within New Zealand.

If you’re renting a premises this covers up to $10,000 for loss to fixed glass, toilet pans or hand basins as a result of burglary, if you have to pay this under your lease agreement. 

Up to $2,000 cover for accidental loss to lawn, flowers, trees or shrubs at your premises provided your commercial building at those premises also suffer a covered loss.

If keys you use to access your insured property are lost or stolen, we’ll pay up to $5,000 to replace them and the locks, and you won’t need to pay an excess. This also covers devices like electronic access cards and remote door openers.

We’ll pay up to $20,000 if you need to take action to protect your property from a potential loss that would be covered under this policy, or for resulting damage to your property. 

Covers up to $5,000 for the cost of refilling fire-fighting appliances, shutting off water supply if it accidentally discharges from fire fighting equipment, and repairing and replacing property that’s damaged while protecting your property from a loss which is covered by this policy.

We’ll pay up to $5,000 if you offer a reward to protect or recover your commercial property following a loss covered under this policy, provided we agree prior to the award being offered.

Cover for up to $5,000 for accidental loss to the property of a club that chiefly benefits your employees, like a social or sports club.  You can also choose a higher cover limit.  

Up to $100,000 of cover for accidental loss to any commercial property caused by subsidence of land beneath or adjacent to it.

If we agreed that residential accommodation can’t be lived in after a covered loss, we’ll pay up to $10,000 for alternative accommodation.

Covers up to $2,000 for labour and hire charges for the installation and removal of loan equipment, after a covered loss.

Covers your property, except for stock on consignment to a customer and portable plant and equipment, for accidental loss while it’s temporarily removed from the premises, including in transit, anywhere in New Zealand. 

Covers up to $10,000 for loss from theft, provided the theft does not involve, you, your employees or any fraudulent activity. You can also choose a higher cover limit if required.

Cover for burglary is automatically included up to the sum insured on the certificate.

The difference between burglary and theft is that burglary typically involves forcible and violent entry or exit from a securely locked building or theft accompanied by violence or threat of violence to you, your employees or customers.  Conversely, theft is opportunistic, with no forcible or violent entry or exit required for an item to be taken (e.g. taking something from an unlocked and unsecured premises).”


If you need to demolish, damage or remove any property in order to reinstate your commercial property, we’ll cover the cost of this and the cost of reinstating the property. 

Optional extras

You can purchase this Optional Benefit for even more comprehensive insurance.

Your wine, honey or olive oil in vats is covered for contamination caused by the accidental leaking of refrigerant from the refrigerant artificially or temparature controlled plant or vats.  Cover also applies for spoilage or deterioration after an accident to refrigeration artificially or temparature controlled machinery, controls, electrical switchboards or reticulation, or due to natural disaster. 

Cover for accidental loss to your indoor plants caused by frost, if the growing house has an adequate, working heating system and a monitored alarm.

Cover for accidental loss to your commercial property caused by natural disaster.  This excludes indoor plants and property covered under the Earthquake Commission Act 1993.

The sum insured for your stock will be automatically increased by 25% for a four-month period shown on your certificate.

What we pay

For buildings and contents you can choose from three levels of cover - Present Day Value, Nominated Replacement or Functional Replacement.

You can choose to have your growing structures and plastic or cloth-cladded buildings covered on a Nominated Replacement basis. Portable plant and equipment is covered for replacement provided the item is up to 2 years old or otherwise Present Day Value. For glass, money, growing plants and stock what we will pay will depend on the particular qualities and requirements for these items in the event of a loss.

Repair or replacement of your items to the same condition they were in just before the loss, think of it as similar to a second hand value.

Repair or replacement of your items to the same condition as when they were brand new.

Repair or replacement of your items with the modern functional equivalent using construction methods and materials in common use at the time of repair or replacement.

Download policy

Please note this is only a summary of the product and is subject to our specific product documentation. For full details please download the policy wordings using the links below, or you can get a free copy by calling us on 0800 366 466.


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