Commercial Property Insurance for Ontario Owners & Investors.
Protect the building, rental income and liability exposures behind your commercial real estate investment. Verdant works with eligible owners and investors of income-producing commercial properties across Ontario.
What kind of commercial property do you own?
Different properties create different underwriting considerations. Tenant operations, building construction, rental income, fire protection, vacancy and property values can all affect how insurers evaluate the risk.
Commercial Plazas
Insurance for retail and service plazas where tenant mix, rental income, common areas, vacancy and commercial cooking exposures may influence underwriting.
Explore Commercial Plaza Insurance →Medical & Professional Buildings
Property insurance for buildings occupied by medical, dental and professional tenants, including rental income and property-owner exposures.
Explore Medical Building Insurance →Industrial & Warehouse Properties
Insurance for warehouses, distribution properties and industrial real estate where tenant operations and building characteristics matter.
Explore Industrial Property Insurance →The building is only one part of the exposure.
Commercial property owners can face financial loss from physical damage, interrupted rental income, liability claims, equipment breakdown and other insured events. The insurance program should reflect both the physical asset and the income it is intended to produce.
Commercial Building
Coverage for insured physical damage to the commercial building, subject to policy terms.
General Liability
Protection against certain third-party bodily injury and property damage claims.
Rental Income
Coverage may protect eligible rental income following a covered property loss.
Equipment Breakdown
Protection may be available for sudden mechanical or electrical breakdown.
Water & Sewer Backup
Available water-related coverage varies by property, location and insurer.
Additional Protection
Bylaw, crime, umbrella and excess liability options may be appropriate depending on the risk.
What happens inside the building matters.
A commercial property occupied entirely by professional offices may be viewed very differently from one containing restaurants, automotive businesses, manufacturing or other higher-hazard operations.
Insurers may review each tenant's operations, the percentage of the property they occupy, fire protection, vacancy and other building characteristics.
For multi-tenant properties, maintaining an accurate tenant schedule can make the underwriting process substantially easier.
Protect the income the property was purchased to generate.
For many commercial real estate investors, rental income is one of the largest financial exposures after the building itself.
If an insured event prevents tenants from occupying part or all of the property, the owner may continue to face mortgage payments, taxes and other expenses while rental income is interrupted.
Depending on the policy, rental-income or business-interruption coverage may help protect eligible lost income during the restoration period.
Market value and insurance value are not the same thing.
The sale price of a commercial property does not necessarily represent the amount required to insure the building. Insurance values may need to reflect reconstruction costs, materials, labour, building systems, construction type and other physical characteristics.
Market Value
The amount a buyer may pay for the land, building and investment opportunity.
Replacement Value
The applicable cost exposure associated with repairing or reconstructing the insured building.
Co-Insurance
Some policies contain insurance-to-value requirements that can affect how a property claim is settled.
What will a commercial property underwriter want to know?
Better submissions start with accurate information about the property, tenants and ownership exposure.
Building Construction
Construction type, age, square footage, roof, storeys and physical characteristics.
Tenant Schedule
Tenant names, business operations, occupied space and vacancy.
Replacement Value
The insured value should reflect the applicable reconstruction exposure.
Building Updates
Roofing, electrical, plumbing, heating and other major building systems.
Fire Protection
Sprinklers, alarms, extinguishing systems, hydrant access and other protection.
Rental Income
Annual rents and expected restoration time can affect required income protection.
Vacancy
Vacant units or buildings may materially affect insurer appetite and coverage.
Claims History
Previous property, water, fire and liability losses may affect underwriting.
Property Management
Maintenance, inspections and how the property is managed may be relevant.
Start the insurance review before closing.
A commercial property purchase or refinance can create insurance requirements from lenders, lawyers and other parties involved in the transaction.
Beginning early gives your broker time to review the building, tenant occupancies, property values, rental income and available insurance markets before the transaction deadline.
The relationship shouldn't stop at one building.
Commercial real estate investors often grow through additional acquisitions, refinancing, development and new partnerships.
An owner may begin with one plaza and later acquire medical, professional or industrial properties.
Verdant can review eligible individual buildings as well as multi-location commercial property portfolios as the ownership relationship grows.
Commercial insurance built around the property owner.
Understand the Building
We review construction, building systems, values, protection features and claims history before approaching markets.
Understand the Tenants
Tenant operations can materially affect property underwriting, so occupancy is treated as a central part of the risk.
Understand the Investment
Rental income, ownership structure and future acquisitions matter when insurance is being built around a commercial real estate investor.
Commercial Property Insurance FAQ
What does commercial property insurance cover in Ontario?
Coverage depends on the property and policy. Commercial property insurance can protect insured buildings and other property against covered causes of loss. Property owners may also require liability, rental-income, equipment-breakdown and other coverage.
Is market value the same as the amount I should insure my building for?
Not necessarily. Commercial property insurance values are generally concerned with the applicable basis of settlement and reconstruction exposure rather than simply the property's real estate sale price.
Can commercial property insurance cover lost rental income?
Depending on the policy, rental-income or business-interruption coverage may help protect eligible income lost after an insured event makes part or all of the property unusable.
Does tenant occupancy affect commercial property insurance?
Yes. Restaurants, automotive businesses, professional offices, retailers, warehouses and other occupancies can present very different property and liability exposures.
Can Verdant insure a commercial plaza?
Verdant can review eligible commercial plazas and multi-tenant properties in Ontario. Visit our Commercial Plaza Insurance page.
Can Verdant insure medical or professional buildings?
Verdant can review eligible properties occupied by medical, dental and professional tenants. Visit our Medical Building Insurance page.
Can Verdant insure warehouse and industrial properties?
Verdant can review eligible Ontario warehouse, distribution and industrial properties. Visit our Industrial & Warehouse Property Insurance page.
Can multiple commercial properties be insured?
Depending on ownership structure, property characteristics and insurer, multiple locations may be reviewed as part of a broader commercial property portfolio strategy.
What information should I prepare for a commercial property quote?
Useful information can include construction, age, square footage, replacement value, tenant schedule, rental income, building updates, fire protection, vacancy information and claims history.
Protect the property. Protect the income. Build the portfolio.
Tell us about your commercial property and a Verdant broker can review the building, tenant mix, rental-income exposure and available Ontario insurance options.