Duncan & Stoker
Commercial Insurance Solutions Inc.

What types of insurance do I need for my

commercial building?

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Commercial building owners typically need commercial property insurance for the building and its contents, general liability for third-party injuries or damages, and loss of rental income coverage. Workers’ compensation is required if you have employees, and additional policies like flood or umbrella insurance may be needed based on location and risk.

What does commercial property

insurance cover?​

 

Commercial property insurance covers damage to the building, fixtures, and equipment from perils like fire, storms, vandalism, or burst pipes. It excludes tenant property, floods, and earthquakes, which require separate policies.

Do I need flood or earthquake insurance for my commercial property?

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Standard property insurance excludes floods and earthquakes. If your building is in a flood zone or seismic area, separate flood or earthquake insurance is recommended to cover structural damage and avoid costly repairs.

Does my insurance cover tenant improvements or their property?

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Property insurance typically covers the building and landlord-owned fixtures, not tenant improvements or personal property. Lease agreements should require tenants to carry their own insurance for improvements and belongings to reduce your liability.​

Am I covered for vacant

commercial buildings?​​​​

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Standard policies may limit or exclude coverage for vacant buildings due to increased risks (e.g., vandalism). Vacant property insurance or a vacancy endorsement is needed to maintain coverage during unoccupied periods, often at higher premiums.​​

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How much does commercial building insurance cost?

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Premiums typically range from $1,400 to $5,000 annually for smaller properties, depending on building size, location, tenant types, and coverage limits. Larger or high-risk properties (e.g., in urban or disaster-prone areas) may cost $10,000 or more annually.

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Is general liability insurance necessary for commercial buildings?

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Yes, general liability insurance is essential to cover tenant, visitor, or contractor injuries, property damage claims, or lawsuits related to the premises. It’s often required by lenders or lease agreements and protects against significant financial risks.

What is loss of rental income insurance,

and do I need it?

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Loss of rental income insurance covers lost rent if the building becomes uninhabitable due to a covered event (e.g., fire or storm damage). It’s highly recommended to maintain cash flow for expenses like mortgages or maintenance during repairs.

What is a certificate of insurance,

and why is it requested?

 

A certificate of insurance proves your property has active coverage, detailing policy types and limits. Lenders, tenants, or regulators request it to ensure compliance with loan terms, leases, or local regulations. Your insurer can provide this document.

Do I need umbrella insurance for

extra liability protection?

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​Umbrella insurance provides additional liability coverage beyond standard policies, ideal for large or multi-tenant properties with higher risk exposure. It’s recommended to protect against large lawsuits or claims exceeding general liability limits.