Business Property Insurance

Do you lease or own office space, manufacture products, manage inventory, lease equipment or maintain the property of others? If so, Property Insurance can help protect your business in the event of a loss. Your business can face the same unpredictable events your home does, including fire, vandalism, water damage and theft, so you want to make sure you’re covered against these risks and more, with the right insurance for your business.

Keep in mind, you’re not only responsible for your own property, you may also be responsible for damage done to the personal property of employees and customers. Keep reading to learn more about Property Insurance for your business.


What is commercial property insurance?

Commercial Property insurance, (also known as Business Property insurance) provides coverage for your business and its contents or physical assets, as well as exterior fixtures, such as a fence or outdoor sign. It can help cover your repair or replacement costs if your business property is damaged or destroyed as a result of a covered loss.

Commercial Property Insurance can protect your company’s physical assets from fire, explosions, burst pipes, storms, theft and vandalism. It typically does not cover events such as earthquakes and floods, unless those perils are added to the policy. Check with your insurance advisor to understand what is covered under your policy to ensure you have what you need.

Commercial Property Insurance is purchased by the following professions and businesses:

  • Electricians
  • Contractors
  • Home builders
  • Carpenters
  • Construction
  • Bakeries
  • Clothing stores
  • Restaurants
  • Gift shops
  • Florists
  • Pet stores
  • Book stores
  • Furniture stores
  • Graphic designers
  • Photographers
  • Accountants

What does Commercial Property insurance cover?

Commercial Property Insurance covers many physical assets essential to the operation of a business, including physical assets, for example:

  • Your premises (buildings)
  • Equipment and tools used in the business
  • Inventory
  • Furniture
  • Computers
  • Exterior signs
  • Fence and landscaping
  • Important documents
  • Inventory
  • Others’ property

It’s important to note there are typically two types of insurance coverage offered: replacement cost and actual cash value.

  • Replacement cost – Covers property repair or rebuild with materials of the same or comparable quality.
  • Actual cash value - Covers the current value of the damaged property minus the depreciation.

Benefits of Commercial Property insurance:

Your business is unique, which is why we can tailor Commercial Property insurance to meet your needs. Make sure you have the right coverage for your business, which may include the following options:

Recovery from a loss

This can help mitigate the long-term effects of property damage caused by an insured peril, allowing you to get back up and running quickly.

Repair costs

In the event of a covered loss to your business, this can help you recover the repair costs in order to get your business up and running as quickly as possible.

Replacement costs

In many cases, this can cover the replacement costs of damages if the loss is too great to repair.

Business interruption coverage

This coverage can mitigate your loss of income and enable you to pay your bills, payroll, and other expenses.

Unexpected losses

Often, natural disasters are out of our control and can cause significant property damage. A commercial property insurance policy may include coverage for fire damage, winter storm damage, hail damage and some forms of water damage in these unforeseen situations.

Additional coverage options to consider for your business

Product liability insurance

This coverage extension can provide further protection from customer claims made against your products and services after the sale, including legal expense and defence cost reimbursement.

Cyber insurance

Big or small, if you store sensitive data, you can be a target. With the cyber insurance coverage, unique to your organization’s needs, we can help protect your business from first and third party losses, including:

  • Income loss from disrupted online sales
  • Electronic data loss and damage
  • Threat to reputation
  • Credit monitoring
  • Cost of defence

Professional liability

Also known as Errors and Omissions Insurance, this coverage can protect you in the event of damages from your acts, errors or omissions in providing professional services. Professional Liability can cover legal fees, settlement agreements and loss of wages due to the lawsuit process.

Equipment breakdown insurance

As a business owner, you may rely on your equipment or machinery on a daily basis. If that equipment were to suddenly stop working, your daily operations and overall business could suffer. Equipment breakdown insurance protects you in an event like this by helping with the repair and replacement costs of your machinery.

Commercial auto insurance

Whether you have one vehicle or an entire fleet, Commercial Auto Insurance can cover you financially in the event of an environmental incident, like a hailstorm or tornado, or damage caused by theft or vandalism.

BrokerLink tip:

Before calling for a quote, have all your business information available so we can provide the most accurate quote.

Factors that can affect your commercial property insurance premiums

In determining the premium you'll pay for your business, a variety of factors are taken into consideration, including:

  • Location
    • Depending on where your business operates, you may need a specific or different level of coverage. For example, if you live in an area susceptible to forest fires, then your premiums and coverage must be tailored accordingly.
  • Replacement costs
    • The amount of money it would cost to replace both your commercial space and its contents will help determine how much coverage you need and how much your premium will cost.
  • The age of your property
    • An older building may be more expensive to cover in the event of a loss. It is generally more affordable to insure newer buildings than older ones. Your insurer may need to know if you decide to do renovations or enhancements to your property if your business is located in an older building. These changes may impact your insurance coverage and premiums.
  • Electrical work and plumbing
    • Insurance claims for water damage are among the most common in Canada. As a result, the type of plumbing in your building may play a significant role in calculating your premiums.

Get In touch with BrokerLink

Our expert Commercial Insurance Advisors will ask you the right questions to ensure your business has the Property Insurance it needs. We do all the research, source competitive quotes and make sure your business property has the right coverage at the best price possible.

You can get your business back up and running quickly after you suffer a loss to your property with the right commercial property policy. BrokerLink’s experienced Insurance Advisors are ready to assist you in finding the right policy for your business.


Commercial Property Insurance FAQs

What insurance do I need for a commercial property?

Business insurance protects you from the things you can’t predict, including unforeseen incidents and risks. Luckily, our experienced insurance advisors understand the right questions to ask in order to get you the right coverage against the risks you may not see coming.

How does commercial insurance work?

Your business is unique, and so is your business insurance. Our expert insurance advisors will get to know your business and the risks associated, so you get the right coverage without gaps that can leave you financially responsible for damages.

What is the difference between commercial and residential property insurance?

While business owners and home owners face many of the same property risks, including fire, vandalism, water damage and theft, they have different financial thresholds for liabilities; taxation and other legal requirements to consider. No matter what type of business owner you are, it’s a good idea to research what type of commercial insurance you need to cover potential damages, liabilities, cyber threats and more.