Written by
Nolan Wilson
Updated on September 11, 2025
min read
Save on commercial property insurance tailored to your needs
If you rent or own a physical location, you need commercial property insurance coverage.
Your business has a lot to gain. But it also has a lot to lose if your property is not protected against inherent threats. Loss or damage to your property can bring your operations to a standstill. When you have commercial property insurance, you don’t have to worry that your livelihood is in peril. You’ll have the financial protection you need when the unexpected happens.
Proper coverage protects your place of business and physical assets. Compare the best quotes for commercial property insurance from the top insurers in Canada. We'll find you an affordable policy for your business property and ensure it's adequately insured.
Top things to know about business property insurance
Commercial property insurance is not mandatory but recommedend and may be required by your lender or commercial landlord.
Commercial property insurance protects your physical assets - building, structure, equipment, and more.
The average range of commercial property insurance is from $1,000 to $10,000 per year.
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What is commercial property insurance?
Commercial property insurance provides financial protection when your building is damaged. It protects the physical assets of your business from threats - water damage, fire, theft, vandalism, and more. This includes the physical structure of your building and its contents. This policy may also be known as business property or commercial building insurance.
Do I need commercial property insurance?
The simple answer is yes! All companies should have business property insurance if they have a physical location. It protects your company's physical assets from loss or damage. Having a policy is very important, whether you have a home office, storefront, coffee shop, or large building. There are many different solutions to meet the demands of small, medium and large organizations.
You’ll want a policy if the following applies to your situation:
You operate in a commercial space.
You own or lease a building.
You have equipment or inventory.
You do business off-site.
You use computers, machinery or electronics for business purposes.
Get commercial property insurance for all types of businesses
All company types and industries can benefit from protection against an unplanned event. We customize options and packages for your specific situation. Get coverage for these industries:
Auto Repair
Large Office
Contractors and Skilled Trades
Home-based business
Small business
Real Estate
Hospitality
Retailers
Transportation
Wholesale
Manufacturing
Professional Services
What does commercial property insurance cover?
Commercial property insurance covers your physical property, building, equipment, and disruptions in operations related to insured claims.
Loss or damage to your location can be devastating. Imagine the cost of replacing manufacturing machinery, your computers or several months of inventory. It could be a situation you could not recover from without business property insurance. Here is what commercial property coverage includes:
Physical building: Any damage to your building by an insured peril. This includes landscaping, signage, and other physical structures on your land.
Contents: All inventory, materials, furniture, supplies, and contents within the building.
Equipment: All tools, equipment, machinery and computer systems. Get protection from breakdowns with equipment breakdown insurance
Even though some things are not included in your property policy, you can add other types of coverage to round out your plan.
What threats does business property insurance protect against?
Commercial property coverage protects your business dwelling against a long list of threats, including the following:
Fire and smoke
Water damage
Break ins and theft
Hail, lightning, and windstorms
Explosions and gas leaks
Vandalism
Review your coverage for a complete list of what is covered in your policy.
Expert commercial property insurance advice
Protect your business premises and assets with building and contents coverage. I also recommend considering business interruption insurance to cover lost income if you can't operate due to damage. For savings, explore a higher deductible and implement security measures like alarms.
Anne Parker
|
Commercial Insurance Broker (RIBO)
Speak with a business property insurance expert today!
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How much does commercial property insurance cost?
The average range of commercial property insurance is from $1,000 to $10,000 per year or more. This would be from $80 to $800 per month. Average costs can vary, and no two properties are the same. The business type, size, location, equipment, and more are all part of premium calculations. It is easier to estimate the costs after first exploring your insurance options.
For example, the cost to cover a small restaurant would differ greatly from a large warehouse. Property values, equipment, and risks to operations are very different. Plan limits and inherent threats based on your industry are also factors. Speak with a ThinkInsure expert to assess your needs and find the best rates.
What factors affect commercial property insurance premiums?
Insurers use a variety of factors to assess and set premiums. They include:
Location
If you have more than one property
Age of your property
Building size, construction type, and features
Replacement cost
Coverage options and limits
Plumbing, electrical and building upgrades
Theft and fire security systems
The type of operation
Value of assets and equipment
Security systems and business risk reduction practices
Your insurance history
What are the top benefits of getting commercial property insurance?
Peace of mind: You never know when a disaster could strike. Having insurance gives you peace of mind. You’ll be covered if you have a flood, fire, or experience a loss.
Financial security: You’ve invested a lot. Protect this investment and maintain your financial security when times get tough.
Recovery expenses: Recovering from damage or loss can be crippling. Insurance assists with the recovery process. Get financial compensation for repairs, replacement, and recovery.
Business disruption protection: Get compensation if you have had to close due to an unforeseen event. Get funds to help you make up for lost revenue and sales.
How do I get cheaper commercial property insurance?
Here are some useful tips to save on commercial property insurance:
Review your policy: Assess your needs each year. This is important if you are in a growth phase or have recently changed locations.
Secure your business: Being proactive will help protect against threats and lower your insurance. Installing security systems, inventory control systems, hiring security, and other preventive measures could qualify you for savings.
Avoid too many claims: Filing too many will increase your insurance payments. Make sure it is worthwhile before you open a claim with your insurer.
Review your options each year: A lot can change in a year. Get a quote to assess your insurance needs annually.
Work with an expert: A commercial insurance broker can help you find the right solution. Get help assessing your needs, finding cost savings, and choosing a plan.
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Examples of commercial property insurance claims
Here are some examples of typical commercial property claims:
A kitchen fire in a restaurant damaged the ovens and other kitchen equipment. Your policy covers the cost of replacing the stove and other equipment.
Overnight, someone breaks into your office building and steals computers and other electronic equipment. Your policy covers the cost of replacing the broken window and the stolen items.
A pipe breaks and floods the storage room, ruining thousands of dollars in inventory. Your policy covers the cost of replacing the inventory.
Commercial property insurance FAQs
Commercial property insurance is not legally required in most instances in Canada. However, banks and lenders typically require it as a condition of property financing. The landlord also requires it in the lease agreement. So, even though it's not mandatory, it's still required in most situations.
It depends on your business type. Some inherently require more than others. Your plan is based on location, size, industry, operations and more. Speak with an insurance expert to assess your situation and choose the right solution.
It protects your physical location. It helps you reduce potential issues associated with operating and running your business. Protect your location, assets, equipment, and inventory. It helps to safeguard your organization's existence.
All commercial property insurance policies include a deductible. Choosing a higher deductible will reduce your premiums. Some insurers offer deductible options—a flat amount or a percentage for catastrophic events, and some require a waiting period before they activate.
Each insurer uses a unique formula to calculate property insurance premiums. They consider different variables and offer various insurance packages. So, looking at policies from multiple providers is essential to ensure you find the right coverage at the best premiums.
Yes. Theft coverage is part of your plan. The amount, type of plan, and limits will vary based on your provider. However, employee theft is typically not covered. Theft from third parties is included.
All types of business properties should have it. If you have an unoccupied dwelling, you should insure it. You’ll require a vacant property plan. Speak with your insurance expert about requirements.
There is not one specific insurer that is the best provider. The best insurers offer solutions that meet your company’s unique requirements. Shop around for solutions with multiple insurers to find lower payments.
Get protection with commercial property insurance
Protect your business property. Our experts will compare quotes from the leading providers in Canada to ensure you get the best rates and coverage. Get started online, or give us a call to get a quote.
Nolan is a content marketing manager and writer at ThinkInsure. He has 15+ years of experience in the insurance industry, working with brokerages and direct insurers to create compelling insurance content, specializing in auto, home, and commercial.
