If you own an office building, you need to ensure it’s protected. Commercial insurance can help you do just that, and ALIGNED can help you find it. Keep reading to learn more about how the right insurance policy can safeguard your office building against all kinds of risks.
Protect your commercial office buildings
If you want to make sure your commercial office buildings are well protected, we recommend speaking with an ALIGNED commercial insurance broker/expert. Here at ALIGNED, our specialty is commercial insurance, and all of our brokers are fully licensed. When you get in touch with us, we take the time to understand your individual needs and find insurance coverage tailored to them.
Beyond the standard commercial general liability insurance and commercial property insurance, machinery breakdown insurance, crime insurance, business interruption insurance, and more, can all be used to keep your office building and investment in it…safe.
Ultimately, commercial insurance for office buildings is designed to safeguard your business assets against unforeseen events. Contact ALIGNED and let one of our expert brokers help you navigate the complexities of insurance for your office building.
What risks do office buildings face?
Owning and renting an office building to tenants comes with many risks, which is why commercial is so important. The experts at ALIGNED have put together a list of some of the most common risks that owners of office buildings face (all of which can be mitigated with the right insurance coverage):
- Storm, fire, or water damage to the physical office space
- Sewer back up
- Break-ins, theft, or vandalism
- Unforeseen breakdown of machinery, such as HVAC systems, mechanical, or electrical machinery
- A tenant’s customer injures themselves while visiting their office
Insurance coverage for office buildings explained
At this point, you might be wondering what insurance coverage your office building needs. While the needs of each office building will vary, it is generally recommended that commercial properties have policies with the following coverage:
- Commercial general liability insurance: Commercial general liability insurance, sometimes referred to as “slip-and-fall insurance,” protects against the day-to-day risks that come with owning an office building. For example, if a tenant slips and falls on a wet floor or an icy walkway leading up to the building, they could sue you. In such an instance, your insurer might help pay for medical bills, along with legal defence fees, settlement fees, and more. Overall, commercial general liability coverage may cover the cost of medical expenses, repair bills, legal fees, etc. for claims related to third party injury, property damage, libel or slander, and more.
- Commercial property insurance: Protect the physical structure of your office building from unforeseen circumstances like theft, vandalism, fire, water damage, etc with commercial property insurance. When you add commercial property coverage to your office building insurance policy, your insurance provider may pay for repairs or replacements in the event of loss or damage caused by an insured peril.
- Business interruption insurance: Business interruption insurance can protect your office building from lost income if it is forced to close due to an insured peril. Insured perils covered by business interruption insurance vary but can include theft, fire, vandalism, windstorms, water damage, and more.
- Machinery breakdown insurance: Machinery breakdown insurance is specialized insurance coverage that effectively provides HVAC insurance and electronic equipment insurance for a unique set of perils like electrical arcing, power surges, etc. It can be an important type of coverage for office buildings.
- Crime insurance: Crime insurance can help mitigate the financial losses of employees or customer crimes related to your office building, such as employee dishonesty, fraud, burglary, robbery, theft, etc.
- Umbrella liability insurance: Umbrella liability insurance takes effect when regular liability limits are reached, meaning it can protect your strip mall against unforeseen or catastrophic events.
Why does my office building need commercial general liability insurance?
If you own an office building that you lease out to commercial tenants, then you are a landlord, and as such, commercial general liability insurance is a must. Commercial general liability coverage protects you as the building owner against claims made by both tenants and customers of your building. More specifically, it can provide coverage for third party claims of bodily injury, advertising and personal injury liability, and property damage related to your property, operations, and products. Some of the most common claims include slip and fall incidents or damage to your physical office building caused by perils like floods or fires. As the owner and landlord of an office building, you have a duty to make your property safe for those who access it and lease space from you.
What is and isn’t covered by commercial property insurance for office buildings?
As mentioned above, commercial property insurance is an important element of insurance for office buildings. It can protect against property damage to your office building caused by a whole host of incidents. Though the exact terms of your coverage will vary, commercial property insurance policies for office buildings may provide coverage for:
- Building: Commercial property insurance may cover the cost of replacing or repairing damage to your office building that was caused by insured perils (insured perils will be clearly stated in your policy and may include fires, floods, theft, vandalism, etc.)
- Business contents (e.g. equipment, electronics, fixtures, furniture, etc.): Commercial property insurance may cover the cost of replacing or repairing any equipment, fixtures, electronics, or furnishings that are lost, stolen, or damaged due to insured events.
Now that you know what commercial property insurance covers, let’s consider what isn’t covered by this type of insurance. The following is typically not included with commercial property insurance:
- The disappearance of an item where the cause of the loss cannot be determined.
- Office buildings that are left vacant or unoccupied for more than a certain stretch of time (often 30 days).
- Regular wear and tear to equipment due to regular usage.
- Losses of cash, securities, or precious metals (you will need to add crime insurance to your office building policy if you want to be covered for this).
Does insurance for office buildings cover vacant office buildings?
Commercial property insurance does not typically cover vacant non-residential buildings. Such buildings are considered vacant after 30 days. Vacant buildings are generally considered to be high-risk, as they are more vulnerable to property damage (especially theft and vandalism). Therefore, if your office building will be vacant or unoccupied for a prolonged period of time, you must notify them right away as this may change your coverage or require a specialized placement. For example, an insurance company may remove certain coverages (such as vandalism or theft as insured perils) once the vacancy period begins. Failure to notify your insurer about a vacant office building could result in your coverage being voided in the event of a claim.
The cost of insurance for office buildings
Now that you know more about what coverage is included and excluded with office building insurance policies, you might be wondering how much such a policy costs. You probably won’t be surprised to learn that ALIGNED brokers are often asked about the specific costs associated with the many commercial insurance products and services we offer. In fact, “How much is insurance for an office building?” is a common question that our expert commercial insurance brokers are frequently asked. Let’s face it, price matters. Cost is a significant factor for all policyholders, and you never want to spend more than you have to on insurance. Unfortunately, it’s difficult to determine the cost of insurance for office buildings without knowing some key details about your property. This is because insurance companies use many factors to calculate premiums. These factors can range from the location and size of your office building to the age and condition of the building. Therefore, commercial insurance policies for office buildings vary in price. The following is a list of some of the main factors impacting the cost of insurance for office buildings:
- The location and size of your office building
- The age and condition of your office building
- The number of tenants in your office building
- The type of businesses leasing space in your office building
- Your insurance claims history
- The amount of rental income generated by your office building
- The revenue generated by your office building
- Your policy coverages, limits, and deductibles you choose
Since the cost of insurance for office buildings varies so widely, we recommend contacting an insurance brokerage for an estimate. ALIGNED is pleased to offer commercial insurance quotes to all business owners, including owners of office buildings. Simply give us a call, provide us with some basic information about your office buildings and overage needs, and one of our licensed brokers will provide you with an accurate, competitive, and obligation-free quote in no time. Regardless of the size and occupancy of your office building, ALIGNED can help you obtain multiple commercial insurance quotes. We work with more than 65 of Canada’s top insurance companies and operate independently, allowing us to represent you and your business. Plus, when you get in touch, we can also offer some tips on how to save money on commercial insurance for your office building.
When discussing the cost of commercial insurance for office buildings, it is important to note that insurance companies are responsible for setting premiums, not brokers. So while ALIGNED can help you find a great policy and even unlock discounts on your behalf, we do not determine rates. Give us a call or continue reading to learn more about the advantages of working with an insurance broker. Our ALIGNED insurance brokers help clients across Canada with commercial insurance for office buildings. Our insurance brokers in Vancouver, Calgary, and Toronto and across Canada are supported by our National Operations headquarters in Cambridge, Ontario.
How insurance policies for office buildings are priced
Certain coverages, like commercial property insurance and machinery breakdown insurance, are primarily priced based on the total insured value of the office building being insured. The total value of the building includes everything, including any improvements made to the building, etc. The amount of rental income generated by the office building may also come into play. Meanwhile, the cost of adding commercial general liability insurance to your policy is mainly based on the revenue generated by your business operations. However, other factors, like the type, location, and size of the building will also be relevant.
Why does the value of the office building matter?
The value of your office building forms the basis of your insurance policy cost and will determine the coverage you need. When identifying your coverage need, both the replacement cost value of the office building and its actual cost value are considered. An adequate policy should provide the replacement cost of the office building using similar materials to rebuild it.
How to reduce your risks as the owner of an office building
As the owner of an office building, you might be curious to learn how you can reduce your potential risks. The reality is that one of the most effective ways of mitigating risk is by purchasing a commercial insurance policy for your office building. If you currently lease your office building to a tenant or multiple tenants, we strongly recommend purchasing a comprehensive commercial insurance policy to protect against unforeseen events. To learn more about the financial risks of operating an office building and how insurance can help you protect against them, contact ALIGNED today.
Why purchase commercial insurance for your office building from an ALIGNED broker
If you’re ready to purchase insurance for your office building, you may be wondering where to get it. Commercial insurance for office buildings can be purchased directly from insurance companies. However, it can also be purchased through insurance brokers. Many office building owners choose to buy coverage through a broker owing to the many benefits that come with doing so. We outline three benefits of buying commercial insurance for your office building from an ALIGNED broker below.
- ALIGNED brokers have the necessary resources and expertise: ALIGNED insurance brokers are not only fully licensed but they are experts in their fields. They can help you find any type of commercial insurance coverage and are eager to share their resources and expertise.
- ALIGNED brokers provide unbiased, objective advice: ALIGNED brokers work independently of insurance companies, which allows us to offer unbiased, objective advice to each of our customers. If you want an insurance specialist that will put your office building’s needs first, contact ALIGNED.
- ALIGNED brokers handle everything from start to finish: One last benefit of working with an ALIGNED broker is that they do all the heavy lifting. You get to sit back, relax, and spend your free time however you like while your dedicated ALIGNED broker works behind the scenes to find you a great policy. From contacting top insurance companies and obtaining quotes to comparing policies and unlocking discounts, you can rely on us for all your commercial insurance needs.
ALIGN your office building with the right commercial insurance policy
Contact ALIGNED to find your office building the protection it deserves. Our team of friendly and licensed insurance brokers is eager to help find the right coverage for your office building. We will listen to your office building’s unique needs and promise to put them first. Get in touch with ALIGNED today to learn more about commercial insurance for office buildings or click here for a free quote.