Whether expanding warehouse capacity, enhancing office areas, or investing in a larger retail space, choosing the right commercial property is essential for growth. One of the roles we can play as commercial insurance brokers is helping you choose the right property for your needs and one that will help you mitigate business risks.
The Canadian Underwriter details some of these risks as insufficient sprinkler systems, aging infrastructure such as asbestos insulation or outdated plumbing, and tenant-specific risks that expose your business to liability losses.
Inadequate sprinkler systems
Aging, outdated or improper sprinkler systems are an issue we see often in our business. It’s not uncommon for sprinkler systems to have been poorly installed, or for the sprinkler layout and design to be inadequate. Fire safety systems requirements have been updated and changed over the years, and many buildings have not kept up.
One example is the 2018 Empress Hotel Fire in Victoria, BC. A fire broke out in a section of the hotel where the sprinkler system was either not present or insufficient to suppress the flames. Thankfully the fire did not result in any injuries or deaths. It did, however, result in extensive damage and costly repairs.
Before purchasing commercial property, it is highly recommended to bring in a fire safety expert to ensure the building’s system is up to snuff and meets all of the standards laid out in Alberta’s Fire Code. Fire codes are extremely complicated and require a higher level of expertise than a regular building inspector may be able to provide.
Older buildings add additional challenges. Corroding galvanized plumbing can result in expensive water damage and mould growth, while frayed electrical wiring heightens the risk of fires. Many commercial real estate clients may not realize that the true cost of a property extends beyond the purchase price and includes necessary costs to update old systems and ensure compliance.
How brokers can help
Certified insurance brokers such as us at Lane’s are experts at assessing risk. Here are some tips for helping to choose the right commercial property for your business. A clear and complete understanding of your business operations is essential to start.
- We can assist in evaluating your business activities, storage methods, and occupancy type to understand how they may affect fire protection, safety, and overall liability.
- We recommend assigning resources for the maintenance and upkeep of your sprinkler systems and burglar alarms.
- Aging plumbing and electrical components are a leading cause of water damage and fires. Keep a close eye on these. It is essential to regularly maintain its systems (plus HVAC) to prevent costly failures. Maintenance schedules are key, and there are many advanced technologies such as sensors for water leaks to detect risks before they escalate.
- Keep a detailed record of all building equipment and infrastructure, including make, model, serial numbers, and locations. This sort of inventory helps keep maintenance, repairs, and replacements organized while ensuring no asset is overlooked.
- Minimize slip, trip, and fall hazards by maintaining safe, accessible environments year-round. This is especially important in the winter, obviously, when snow and ice increase risks, and for properties frequented by older people. Ensure walkways, curbs, and lighting are designed for everyone, particularly in commercial buildings with medical or retail tenants catering to an aging population.
- Your contracts with your service providers should include proof of insurance and also name you (the business) as an additional insured. This reduces financial and legal exposure while promoting responsible property management.
Brokers such as us at Lane’s work for you and your company
Partnering with an experienced commercial insurance broker is one of the best ways to navigate the ever-evolving insurance landscape. Brokers can help you understand complex coverage options, identify cost-saving opportunities, and ensure your policies align with your business’s needs.
Canada’s commercial insurance market has become much more competitive as of late, meaning businesses have a greater opportunity than ever to find favourable rates combined with comprehensive coverage. By staying informed and working with a trusted insurance professional, you can position your business for success and resilience in an ever-changing market. With experts stationed in Calgary, Banff, Edmonton, and across Alberta, we at Lane’s work hard to find you the very best commercial insurance coverage at the very best rates.
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