Industrial & Warehouse Property Insurance for Ontario Owners.
Protect the building, rental income and liability exposures behind your warehouse or industrial property. Verdant helps eligible Ontario owners and landlords insure industrial real estate around the operations taking place inside it.
The building matters. What happens inside it can matter even more.
Industrial properties can contain very different operations. A warehouse used for low-hazard distribution may present a very different insurance exposure from a property occupied by manufacturing, automotive, woodworking or other industrial operations.
Building Coverage
Coverage for insured physical damage to the warehouse or industrial building, subject to the policy's terms, conditions and exclusions.
Property Owner Liability
Protection against certain third-party bodily injury and property damage claims involving the insured premises.
Rental Income
Coverage may protect eligible rental income following a covered loss that interrupts tenant occupancy.
Equipment Breakdown
Coverage may be available for sudden mechanical or electrical breakdown involving insured building systems.
Water & Sewer Backup
Available water-related protection varies depending on the property, location and insurer.
Umbrella / Excess Liability
Additional liability limits may be appropriate depending on the property owner's assets and overall exposure.
Industrial occupancies can change the underwriting completely.
For a landlord, identifying the tenant as simply a “warehouse” may not give an insurer enough information.
Underwriters may want to understand exactly what the tenant does, what products or materials are stored, whether manufacturing or repair work takes place and whether higher-hazard processes are present.
Storage, sprinklers and fire protection can materially affect the risk.
Industrial and warehouse properties can concentrate substantial building and property values in one location. The nature of the occupancy and how materials are stored may therefore be important to an insurer.
Underwriters may review sprinkler protection, fire alarms, storage height, racking configuration, heating systems and the combustibility of products or materials at the premises.
Owning the warehouse doesn't necessarily mean you insure what's stored inside it.
For a landlord-owned property, the building owner's policy and the tenant's business insurance generally address different exposures. The lease and insurance arrangements should make clear which party is responsible for insuring the building, tenant improvements, business contents, inventory and operations.
Landlord's Building
The property owner may insure the building and other property for which the owner is responsible.
Tenant's Inventory
Stock, inventory, machinery and business contents may instead be the responsibility of the operating tenant.
Lease Requirements
Commercial leases may contain insurance, indemnity and additional insured requirements that should be reviewed by the appropriate parties.
What will an insurer want to know about the property?
Industrial property submissions are stronger when the building, occupancy and protection information is organized before approaching the insurance market.
Building Construction
Construction type, age, square footage, roof, storeys and building characteristics.
Occupancy
A detailed description of each tenant or owner-occupied business operation.
Replacement Value
The applicable reconstruction exposure for the insured industrial building.
Building Updates
Roofing, electrical, plumbing, heating and other major systems.
Fire Protection
Sprinklers, alarms, hydrants and other fire-protection features.
Storage & Materials
Products stored, combustibility, storage height and racking configuration.
Vacancy
Vacant space or an unoccupied building may affect insurer appetite and coverage.
Rental Income
Annual rental revenue and the potential financial impact of a major property loss.
Claims History
Previous fire, water, property and liability losses may affect underwriting.
A serious property loss can interrupt more than the tenant's business.
When an industrial building suffers a major insured loss, the property owner may also lose rental income while repairs are completed. Mortgage payments, taxes and other ownership expenses may continue during the restoration period.
Depending on the policy, rental-income or business-interruption coverage may help protect eligible lost rental revenue following a covered property loss.
Industrial real estate can be part of a larger property portfolio.
Commercial real estate investors may own a combination of warehouses, industrial buildings, plazas, medical buildings and other income-producing properties.
Verdant can review eligible individual industrial properties as well as broader multi-location commercial property portfolios in Ontario.
Industrial property insurance built around the actual occupancy.
Understand the Building
We review construction, values, building systems, protection features and prior losses.
Understand the Operation
The activities taking place inside an industrial property can be critical to insurer appetite and underwriting.
Understand the Investment
Rental income, ownership exposure and future property acquisitions can be considered as the portfolio grows.
Industrial & Warehouse Property Insurance FAQ
What insurance does a warehouse property owner need?
Coverage depends on the building and occupancy. A property owner may require commercial building insurance, property-owner liability, rental-income or business-interruption coverage, equipment breakdown and other property-specific protection.
Does the tenant's business affect warehouse property insurance?
Yes. The activities taking place inside an industrial or warehouse property can materially affect property and liability exposures and insurer appetite.
Does the landlord insure the tenant's inventory?
Not necessarily. A landlord's building policy and a tenant's business insurance generally address different exposures. Responsibility for inventory, contents, tenant improvements and other property should be determined from the insurance arrangements and applicable lease.
Why do insurers ask about warehouse sprinklers and storage height?
Fire protection and storage configuration can affect the severity of a potential property loss. Insurers may therefore review sprinklers, racking, storage height and the materials being stored.
Can industrial property insurance cover lost rental income?
Depending on the policy, rental-income or business-interruption coverage may help protect eligible income lost following certain covered property losses.
Does vacancy affect industrial property insurance?
It can. Vacant space or a fully unoccupied industrial property may affect insurer appetite, coverage and underwriting requirements.
Can Verdant insure multiple industrial properties?
Depending on the properties, ownership structure and insurer, multiple eligible locations may be reviewed as part of a broader commercial property portfolio.
Does Verdant provide industrial property insurance throughout Ontario?
Verdant Insurance is based in Markham and serves eligible commercial insurance clients throughout Ontario.
Protect the building, rental income and industrial investment.
Tell us about the property, tenant operations and current insurance. A Verdant commercial broker can review the risk and available Ontario insurance options.