Owning high-value commercial property in Canada—properties valued at over $10 million TIV (Total Insurable Value)—presents unique insurance challenges and opportunities. Whether it’s an office tower, manufacturing facility, or a large retail complex, insuring these assets requires a comprehensive approach to ensure full protection. Here’s what you need to know.

Risks of High-Value Commercial Properties

• Natural Disasters: Large properties are at greater risk of damage from catastrophic events like floods, earthquakes, or wildfires.
• Vandalism & Theft: With high-value properties, the potential for break-ins or vandalism increases, leading to higher financial risks.
• Business Interruption: If a high-value commercial property is damaged, the business interruption loss can be significant, affecting revenue and operations.

Insurance Considerations for Properties Over $10M

• Customized Coverage: High-value properties require customized insurance policies to account for their unique features and high replacement costs. Standard policies may not offer adequate coverage.
• Rebuilding Costs: Insure for full replacement costs, including the latest building codes, specialized materials, and labor to restore the property.
• Risk Management Plans: Insurers often require a detailed risk management plan that includes security systems, fire suppression systems, and other loss prevention measures.

How to Protect Your High-Value Property

• Regular Property Valuations: Conduct regular valuations to ensure the insurance policy reflects the true market value of the property.
• Loss Prevention: Implement advanced security features like surveillance cameras, alarm systems, and access control.
• Business Continuity Planning: Develop a business continuity plan to minimize downtime in case of property damage or loss.

Final Thoughts

Insuring high-value commercial property is essential to protect your investment. Tailor your policy to your property’s unique needs, manage risks proactively, and stay ahead of potential threats.

Brokers can contact Total Risk Managers to discuss a risk.

This article is general information for insurance brokers. It is not advice, and it is not a quote or an offer of coverage. Policy wording decides what is covered. Coverage is arranged through a licensed insurance broker.