Your livelihood is dependent on the survival of your business, so it’s imperative that you protect it against any potential property threats – big or small – with commercial property insurance.

For instance, a fire could destroy your business’ warehouse and the contents inside, or a burst frozen pipe could damage important documents and valuable papers. Worse, you could have trouble paying your employees during a loss because your funds are devoted to repairing damages.

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What is commercial property insurance?

Commercial property insurance is a type of insurance that provides coverage for physical assets and property used for business purposes. It is designed to protect businesses against financial losses resulting from damage or loss of their property due to various perils such as fire, theft, vandalism, or natural disasters.

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Is commercial property insurance mandatory?

In most cases, commercial property insurance is not mandatory by law in Canada or Ontario. However, it is often required by lenders or landlords as a condition of a lease or financing agreement. Additionally, some industries or professional associations may require businesses to have specific insurance coverage.

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What does commercial property insurance cover?

Commercial property insurance typically covers the following:

Building structures
Business equipment and inventory
Furniture and fixtures
Tenant’s Improvements
Personal property used for business
Loss of income due to business interruption
Liability for injuries or damage to third parties on the property

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How is commercial property insurance calculated?

The cost of commercial property insurance is calculated based on various factors, including the value of your property, the location of your business, the construction of the building you are in, if there are other businesses close by or sharing the same location, the type of coverage, limits insured, and the deductible amount you choose. Insurance companies will also consider the level of risk associated with your specific industry.

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What is an example of a commercial property?

Commercial properties can include office buildings, warehouses, retail stores, manufacturing facilities, restaurants, hotels, apartment or condominium buildings, schools, fitness centers, tech companies, construction companies, and many other types of structures where business operations take place.

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Is it the same as business property insurance?

Commercial property insurance and business property insurance are often used interchangeably. They both refer to insurance coverage that protects a business's physical assets and property.

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How do I ensure people in my business or on my business property aren't injured?

To minimize the risk of injuries on your business property, you should:

Maintain a safe and clean environment including the use of logs to demonstrate that you have taken proper steps to do so. Such as an Ice and Snow Log.
Implement safety protocols and training for employees.
Regularly inspect and maintain your property.
Address potential hazards promptly.
Carry liability insurance to protect against claims from injured parties.

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What are ice and snow logs?

An ice and snow log serves as a documented record of all ice and snow removal or maintenance activities performed on your property throughout the winter season. This record is of paramount importance as a defensive measure in the unfortunate event of a slip and fall incident. It not only provides an accurate account of the prevailing conditions but also serves as compelling evidence that responsible measures were diligently taken to mitigate potential hazards.

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Who is responsible for commercial building insurance?

The responsibility for obtaining and maintaining commercial building insurance typically falls on the property owner. If you are leasing or renting a commercial space, it's common for the property owner (landlord) to have insurance for the building's structure, while you, as the tenant, would need to obtain insurance for your business property and liability. The specific responsibilities may vary based on lease agreements and local regulations.

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Why Your Business Needs Commercial Property Insurance

If self-insuring is not an option to combat these risks of loss, it is wise to obtain Commercial Property Insurance. This coverage comes in many forms to suit your specific needs. Before placing coverage, take a complete inventory of all your business property to determine how much you need to insure. This important step ensures you will have adequate coverage to continue your business in the event of a covered commercial property insurance loss.

Types of property you may need to insure: