Protect Your Building, Equipment, and Inventory
The building you work from, the equipment you use, the inventory you sell – are the backbone of your operations. Imagine a burst pipe flooding your office or a fire tearing through your warehouse. Could your Ontario business withstand the financial hit? Commercial Property Insurance is the safety net that makes sure you’re covered when disaster strikes, so a broken furnace or an overnight theft doesn’t become a business-ending catastrophe.
At Roughley Insurance Brokers, we’ve seen firsthand how proper coverage can mean the difference between a minor setback and a major loss. With a proud legacy of serving Ontario businesses for over eight decades, our team brings an engineer’s precision and a broker’s savvy to protecting what you’ve built. This comprehensive guide will walk you through how commercial property insurance safeguards your buildings, equipment, and inventory – and why Ontario business owners trust Roughley as their expert guide in securing the right coverage.
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Coverage: Guarding Your Buildings, Equipment, and Inventory
What does commercial property insurance cover? In short, it covers the tangible assets your business depends on. If something unexpected damages or destroys your property, this insurance provides the funds to repair or replace it. Commercial property policies typically protect against losses from perils like fire, smoke, wind or ice storms, theft, vandalism, and certain types of water damage. Here’s a look at the key assets and perils covered:
Buildings and Structures:
Whether you own an office, a storefront, or a warehouse, the policy covers damage to the building itself, from the foundation and walls to fixed installations like HVAC systems. Even fixtures such as windows and glass doors are included in standard coverage. If you’re a tenant, you can insure any leasehold improvements you’ve made (like custom interiors or upgrades) so you’re protected for the value you’ve added to the space.
Equipment and Machinery:
From computers and specialized tools to manufacturing machinery, commercial property insurance covers your equipment against insured risks. If an electrical surge fries your office electronics or a machine is damaged in a fire, you can recover the cost of repairs or replacement. (Mechanical breakdowns are usually not covered by a basic property policy, but we’ll address add-ons for that later.
Inventory and Stock:
For retail and manufacturing businesses in Ontario, your inventory is often your livelihood. Property coverage protects your stock – whether it’s merchandise on shelves or raw materials in a factory – if it’s destroyed by a covered event. For example, if a burst pipe ruins the products in your Durham Region store, your policy can compensate you for that lost inventory.
Contents and Other Property:
Beyond big-ticket equipment and inventory, think about all the other contents at your premises. Furniture, office supplies, computers, phone systems, documents, and even your décor are typically included in coverage. Commercial policies can also extend to things like outdoor signs, fencing, landscaping, and even others’ property on your premises (e.g. customers’ or employees’ personal items).
Covered Perils: Standard commercial property insurance in Ontario protects against a broad range of risks. Fire and smoke damage, burst water pipes, windstorms, hail, lightning strikes, explosions, vandalism, and theft are commonly covered. Some natural disasters – for instance, an ice storm that collapses your roof or a windstorm that blows out your windows – are included as well.
If you own a business in Ontario, you know we see our share of wild weather, from heavy snow to summer thunderstorms. Commercial property insurance ensures that when nature (or human mischief) damages your property, you have financial support to recover.
What’s not automatically covered? It’s important to note that flooding from external sources (like a river overflowing or surface water from heavy rain) is not included in a basic policy and requires an added endorsement.
Similarly, earthquake damage, general wear-and-tear, and mechanical breakdown of equipment are not covered by standard property insurance.
And while commercial property insurance covers your stuff, it doesn’t cover liability if someone is injured on your premises or commercial vehicles – those are protected by other policies (like a Commercial General Liability insurance policy for injuries or lawsuits, or a Commercial Auto Insurance policy for company vehicles).
All-Risk vs. Named Perils: Choosing the Right Policy Type
Not all commercial property policies are identical. In fact, one of the most important decisions is whether to opt for an “all-risk” policy or a “named perils” policy:
- All-Risk (All-Perils) Policies: This type of policy (sometimes called a comprehensive form) is “everything is covered unless excluded”
- Named Perils Policies: A more basic form, this covers only the risks that are explicitly named in the policy (plus usually some very basic coverage like fire by default). If it’s not named, it’s not covered.
The KEY thing here is that with all risk the onus to prove the claim is not payable is on the INSURER and with named perils the ONUS of proof is on the INSURED.
At Roughley, we’ll walk you through these options and advise on the best fit – ensuring you’re not paying for coverage you don’t need, but also not leaving your business exposed to a surprise gap.
Beyond the Basics: Key Endorsements and Add-Ons
A standard policy is just the starting point. You can customize your commercial property insurance with endorsements (add-ons) to address specific risks that your business faces.
Ontario business owners often consider:
Business Interruption Insurance:
Also called Business Income Coverage, this is a crucial companion to property insurance. It’s designed to cover the loss of income and ongoing expenses if your business is temporarily shut down due to an insured property loss. For example, if a fire damages your restaurant and you have to close for two months for repairs, business interruption coverage can pay for your lost profits, ongoing expenses like rent and payroll, and even help you set up a temporary location.
Flood (Overland Water) Coverage:
Given the increasing frequency of heavy rainfall and flooding events, Ontario businesses should evaluate this add-on. Overland flood coverage protects you if water from an external source – be it spring runoff, an overflowing creek, or a torrential downpour pooling into your property – causes damage. Standard property insurance will not cover overland flood by default. If your location is near a flood-prone area or you just want an extra layer of protection (many remember the Toronto floods of 2013 or Ottawa/GTA flooding in recent years), this endorsement is worth discussing. Keep in mind that insurers may limit this coverage in high-risk zones.
Sewer Backup Coverage:
Distinct from general flood coverage, sewer or drain backup is a common risk everywhere from downtown Toronto to smaller towns in Durham Region. Aging infrastructure or sudden heavy rains can overwhelm sewers, sending water (and worse) back up through drains into your property. The damage can be extensive – think ruined floors, equipment, inventory, and severe cleanup costs. Sewer backup coverage is an inexpensive add-on that specifically covers this messy scenario. We highly recommend Ontario business owners include this, as even properties on high ground aren’t immune to sewer line issues.
Equipment Breakdown Insurance:
Your property policy covers external risks like fire, but what if a key piece of machinery or an electrical system suffers an internal breakdown? An electrical motor burnout, a boiler explosion, or a compressor failure can halt your operations just as surely as an external disaster, yet these aren’t covered by standard property insurance (which excludes internal failures and electrical breakdowns). Equipment breakdown insurance (also known as boiler and machinery coverage) fills that gap. It will pay for repair or replacement of the broken equipment and often cover associated losses like spoiled inventory (say, if your refrigeration unit fails) or even business interruption resulting from the breakdown. For any business reliant on specialized equipment or climate control (restaurants, manufacturers, print shops, etc.), this endorsement is a wise addition.
By-law and Ordinance Coverage:
One often overlooked factor in rebuilding after a loss is the cost of meeting updated building codes. Ontario’s building codes and municipal bylaws evolve over time. If your older commercial building is damaged, you might be required to upgrade things like wiring, sprinklers, or accessibility features during repairs. Standard insurance typically covers rebuilding to the condition just prior to loss, not the additional code-required improvements. By-law coverage steps in to cover the extra costs of rebuilding to current codes or demolition of undamaged portions if required. This endorsement is especially important if you own an older building anywhere in Ontario’s cities or towns, where code upgrades could significantly increase rebuild costs.
Inland Marine / Off-Premises Coverage:
Do you have business assets that leave your main location? For contractors, mobile businesses, or anyone who transports tools and stock, it’s vital to cover property that might not always be at your insured address. Inland marine coverage (despite the name, nothing to do with boats!) covers movable property: for example, a contractor’s tools at a job site, a photographer’s cameras on a shoot, or samples and equipment you take to trade shows. It can be written as a separate policy to extend your property coverage beyond the premises. Roughley offers specialized Contractor Insurance packages that include property coverage for tools and equipment in transit, so you’re protected on the go.
Every business is unique, so these are just a few of the more common additions. Part of our role as your broker is to analyze your specific risks and recommend the right endorsements and coverages. We’ll never suggest unnecessary add-ons, but we also don’t want you finding out after a loss that something critical wasn’t covered. Our approach is to tailor a policy as precisely as an engineer drafting a blueprint – no gaps, no overlaps, just solid protection where you need it.
How Much Does Commercial Property Insurance Cost in Ontario?
As a business owner, you’re naturally concerned about the bottom line – so what will this insurance cost? Commercial property insurance premiums in Ontario can range widely, from a few hundred dollars a month for a small business to significant sums for large corporations with high-value properties. Insurers calculate your premium based on details unique to your property and operations. Key factors include:
Value of Property and Assets:
The total replacement value of the building and contents you’re insuring is a primary cost driver. Insuring a $5 million building with expensive equipment will cost more than a $500,000 workshop. It’s crucial to insure at full replacement cost (what it would cost to rebuild new), which might be higher than the market value. Underinsuring to save on premium is risky – if you suffer a major loss, you could be left footing part of the rebuild cost. We help determine the proper coverage limits so you’re fully protected without over-insuring.
Location and Environment:
Insurers take into account where your business is located. Are you in a major city like Toronto or Ottawa, a suburb like Whitby, or a rural part of Ontario? Urban locations might face higher theft/vandalism rates; rural ones might be farther from fire stations or hydrants, affecting fire risk. Weather patterns can also matter – a low-lying area near a flood plain, or a region prone to tornadoes (yes, parts of Ontario do see the odd tornado) could influence rates or coverage availability. Durham Region example: If your business is in Durham Region, you know our area has experienced severe windstorms in recent years. Insurers have data down to your postal code; for example, after the May 2022 derecho windstorm that hit Uxbridge and much of Ontario, underwriters became more attentive to wind damage potential in our region. While you can’t change your location, being aware of local risks helps in choosing the right coverages (like adding flood or sewer backup if you’re in a known risk zone).
Construction and Building Features:
The building’s construction type, age, and safety features heavily affect premiums. A fire-resistive concrete or brick building will generally cost less to insure than a wood-frame structure. Updated electrical, plumbing, and heating systems mean a lower risk of fire or water damage. Insurers will ask: Do you have a sprinkler system? Fire and burglar alarms? What type of roof? A building with a new roof, modern wiring, and a monitored alarm may earn discounts. Conversely, an older building with knob-and-tube wiring or no sprinkler could face higher rates or requirements to upgrade for coverage. As brokers with engineering-minded expertise, we often advise clients on risk improvements to not only better protect their property but also reduce premiums.
Occupancy and Business Type:
What you do at the premises is crucial. An office or retail shop is generally lower risk than, say, a restaurant (with cooking fire hazards) or a woodworking shop (lots of flammables). Insurers group businesses into classes – a bakery, an auto repair garage, and a tech firm each face different property risks. If your business involves hazardous processes, open flames, chemicals, or high-value goods, expect higher premiums. Even within a building, different operations matter – e.g., if you share a building with a high-risk tenant, that can affect your policy. Roughley’s brokers understand the nuances of different industries (we provide Manufacturing Insurance, coverage for contractors, retail, professional offices, and more), and we’ll place your policy with an insurer that best understands your industry, often leading to more competitive rates.
Claims History:
Just like your personal auto or home insurance, your claims history can impact your commercial premiums. If you’ve had frequent or severe property claims in the past few years, insurers may consider you a higher risk and charge more. Conversely, a clean claims record can make you eligible for better rates. Don’t let this deter you from making legitimate claims, but it’s something to be aware of. At Roughley, we can sometimes negotiate with insurers or suggest risk management strategies if past claims are affecting your premiums.
Coverage Choices (Deductibles & Extensions):
The deductible is the portion you agree to pay out of pocket on each claim. Choosing a higher deductible (for example, $5,000 instead of $1,000) will typically lower your premium, because you’re retaining more of the small-loss risk. We’ll discuss deductible options with you – it can be a smart move to take a slightly higher deductible to save on annual costs, especially if you don’t anticipate small claims. Additionally, the specific endorsements you add (flood, earthquake, etc.) will affect the cost. Flood and earthquake coverage, in particular, come with their own rates based on risk. The good news is that many insurers offer package pricing or bundles, which brings us to the next point.
In short, a well-designed insurance program can be very cost-efficient for the amount of protection it delivers.
Ontario rates in context: Property costs have been on the rise due to factors like inflation in construction costs and a notable increase in extreme weather events. However, while personal lines have increased 10% commercial insurance has DECREASED by 5%.
Ontario has seen everything from record-breaking windstorms to heavy rainfalls in recent years, which inevitably impacts premiums across the province. While you can’t control the broader market, you can control how well you present your business to insurers.
That’s where our brokerage’s expertise is invaluable – we know which insurers are hungry for certain business classes, and how to showcase your risk management measures to get you the most competitive rate. The rates right now for new business are “soft” in commercial space so its the perfect time to shop – there are deals to be had.Our goal is to secure you robust coverage at a fair price.
Ontario’s Unique Risks and a Durham Region Example
Operating a business in Ontario comes with its own set of opportunities and challenges. We have a strong economy and diverse industries, but we also have a climate that loves to keep us on our toes! When tailoring your commercial property insurance, we always account for Ontario-specific considerations that might affect your coverage needs:
Climate and Weather Events: Ontario businesses face a four-season climate, which means a variety of weather-related risks. In winter, heavy snow and ice buildup can lead to roof collapses or ice dam leaks. Every Ontarian remembers events like the 1998 Ice Storm or, more recently the ice storm in 2025 – such extreme ice events can knock out power and cause extensive property damage.
Come spring, we deal with thaw and flood risks. Summers bring lightning storms, the occasional tornado (yes, they happen here), and windstorms. Wind is one of the biggest causes of property damage in Ontario.
A recent example many in Durham Region won’t forget is the May 2022 derecho windstorm that tore across the province. It hit Uxbridge particularly hard, ripping off roofs and bringing down buildings. Many local businesses suffered major damage. Those with solid commercial property policies – including the right endorsements for wind and power outage-related damage – were able to rebuild with insurance footing the bill. It’s a sobering reminder that freak weather can strike anyone, and having coverage in place is like having a financial storm shelter.
Let’s consider a more everyday local scenario: a Durham Region example that could happen to any business. Imagine you run a manufacturing facility in Oshawa. Late one night, an electrical fault in a machine sparks a fire that spreads through a section of your plant. The fire department extinguishes it, but not before a portion of the building is charred and some expensive CNC equipment is ruined by fire and smoke. This is a devastating incident, but with the right insurance, it’s manageable. Your commercial property insurance would pay for the building repairs (contractors to rebuild the damaged structure, smoke cleanup, new electrical wiring to code), and also cover the replacement of the destroyed equipment and any inventory that was lost in the blaze. If you have business interruption coverage, it would compensate you for the production downtime and lost income while that section of the plant is being restored. In contrast, without insurance, an event like this could easily cost millions out of pocket and might force the business to close permanently. We’ve helped clients in Durham Region and across Ontario recover from fires and other disasters just like this – getting them back on their feet quickly, with insurers covering the heavy costs.
Regional Infrastructure and Crime: Apart from weather, consider factors like local infrastructure. Older downtown cores (e.g. in Kingston or parts of Toronto) might have antiquated water mains that occasionally burst, leading to flooding in basements. If your business is in such an area, water damage coverage (and sewer backup protection) is critical. In fast-growing suburbs, construction activity could pose risks (construction vibration causing cracks, for example, usually covered if sudden and accidental). Crime rates also vary: a business in a high-theft area of a city might invest in better security and needs to ensure theft is covered with appropriate limits. Ontario doesn’t have the same crime challenges as some jurisdictions, but no place is immune to break-ins. The good news is that commercial property insurance covers theft of your contents, and even damage from attempted theft (like a pried-open door or broken window).
Legal and Regulatory Factors: Unlike auto insurance, commercial property insurance isn’t mandated by law in Ontario. However, that doesn’t mean it’s truly optional in practice. If you have a mortgage on a commercial building, your lender will require you to have insurance on it (to protect their interest). Similarly, if you lease a space, most commercial landlords in Ontario stipulate in the lease that the tenant carry property insurance on their contents and often for any improvements. They may even ask to be included as an additional insured or loss payee. So while you won’t get a ticket for not having property insurance, you might be in breach of contracts and, frankly, taking an enormous unnecessary risk by going without it.
Ontario also has regulatory standards for insurance companies (through FSRAO – the Financial Services Regulatory Authority of Ontario), meaning insurers here are well-regulated and claims must be handled in good faith. The policies themselves can vary, but many insurers use standard wording that aligns with industry norms (often based on IBC – Insurance Bureau of Canada – forms).
Local Expertise Matters: What all this boils down to is that local knowledge is a big plus. A policy from a generic online provider might not consider the nuances of, say, lake-effect snow in the Snowbelt regions, or the higher water table in parts of Durham. Roughley Insurance is based in Oshawa, and our team lives and works in communities across the GTA and Durham Region – we know the terrain. We’ll remind you of risks you might not have thought of as a business owner, whether it’s that creek behind your building that could overflow, or the fact that your street has a history of sewer backups.
We also understand the local construction and repair landscape, so we insure you for realistic rebuild costs in Ontario (which have been rising with material and labour costs). Our role is not just to sell you a policy, but to be a risk advisor attuned to Ontario’s environment. When the unexpected happens – be it an ice storm or a vandal smashing your storefront – you’ll be glad to have a seasoned local broker ensuring your claim is handled and your business bounces back.
Ontario’s Unique Risks and a Durham Region Example
Securing commercial property insurance isn’t just about buying a policy – it’s about partnering with the right advisor who understands your business and has your back. This is where Roughley Insurance Brokers truly stands out. When you work with us, you’re tapping into a wealth of expertise and a service philosophy that puts your needs first.
Expert Guidance with Precision:
That means our leadership approaches risk protection with analytical rigour and attention to detail akin to an engineer designing a safety system. We take the time to truly understand the intricacies of your operations, from the construction of your building to the layout of your production line, so we can identify vulnerabilities and craft insurance solutions that fit hand-in-glove. Our team of brokers is highly trained and experienced across a wide range of industries. We love digging into the technical details, so you don’t have to. With Roughley, you get recommendations that are both clever and practical, based on real insight. We won’t blanket you with generic coverage; we’ll build a coverage portfolio that is structurally sound and uniquely optimized for your business.
Comprehensive, Customized Coverage:
Roughley Insurance Brokers offers more than just commercial property insurance – we’re a one-stop solution for all your business insurance needs. This is important because property coverage is just one aspect of safeguarding your enterprise. Our brokerage can integrate your property policy with other coverages like general liability, professional liability, commercial auto, cyber insurance and more, ensuring there are no gaps. By seeing the big picture of your exposures, we can advise you on what policies and endorsements you truly need. For example, if you’re a manufacturer in Ontario, you might benefit from our Manufacturing Insurance package that combines property, liability, and equipment breakdown coverage tailored to manufacturing risks. A tech startup in Toronto might need robust property coverage for expensive electronics and servers, plus cyber insurance – we can arrange both. Customization is key. We negotiate with Canada’s top insurers on your behalf, finding the best coverage terms and pricing. If one insurer isn’t the right fit, we’ll know which other ones to approach – that’s the beauty of working with an independent broker rather than being tied to a single insurer.
Local Roots, Ontario-Wide Service:
Roughley has been serving Ontario since 1945, originating right here in the Durham Region. Our clients aren’t just numbers to us – they’re our neighbours, our fellow local business community members. We have offices and a strong presence in Oshawa and beyond, meaning you can talk to a real person who understands your market. Planning to expand your operations to a new location in the GTA? Need advice on insuring a historic building in downtown Peterborough? We have the local insights to guide you. At the same time, we are fully licensed and active across Ontario – from Ottawa to London to Thunder Bay. Wherever your business grows in the province, Roughley can continue to be your trusted broker. Our long-standing relationships with insurance providers and our reputation in the industry mean we can often secure favourable terms for our clients. Insurers know that a Roughley client is well-informed and well-managed, which can lead to smoother claims and underwriting.
Claims Advocacy and Support:
The true value of insurance is only seen when there’s a claim. That’s when you need your broker the most. Roughley Insurance prides itself on exceptional claims support. Should you suffer a loss, we guide you through reporting the claim, coordinate with the insurance adjusters, and advocate for you to receive a fair and prompt settlement. We’ve been through countless claims scenarios – from minor water damage to large industrial fires – and we know how to navigate the process so you can focus on getting your business back on track. Our team will follow up, keep you informed, and if any issues arise, we’ll be the squeaky wheel to make sure you’re looked after.
Ongoing Risk Management and Reviews:
Businesses evolve, and risks change. We don’t “set and forget” your policy. As part of the Roughley advantage, we regularly review your coverage with you. Got new equipment? Let’s ensure it’s added to the policy. Did you renovate or expand your premises? We’ll adjust your building coverage.
Maybe you implemented a new sprinkler system or security cameras – great, we’ll see if that can reduce your premium. We proactively keep you informed about emerging risks (for example, if there’s a spike in a certain type of claim in Ontario, or a new endorsement that could benefit you).
This continuous partnership means your insurance program stays effective and up-to-date at all times. Ultimately, our mission is to empower Ontario business owners with knowledge and confidence. You can lean on us to handle the nitty-gritty of insurance, while you concentrate on running and growing your business.
Experience, integrity, and a client-first approach – that’s the Roughley way. We go beyond the role of a typical brokerage to be your strategic partner in risk management. When you work with Roughley Insurance Brokers for your commercial property insurance, you’re not just buying a policy – you’re gaining a dependable ally dedicated to protecting your company’s future.
Secure Your Business Assets Today: Get a Quote
Your Ontario business deserves the best protection available. You’ve worked hard to establish it – now let’s make sure it’s resilient against whatever challenges come your way. Don’t wait until after a disaster to realize the value of solid insurance. The peace of mind you get from knowing your buildings, equipment, and inventory are properly insured is truly priceless.
Ready to protect your business with a tailored commercial property insurance plan? The Roughley team is here to help right now. Contact us today to discuss your needs or simply click below to get started on a customized quote. We’ll ask the right questions, shop the market on your behalf, and find you the coverage that fits like a glove – all at a competitive price.
🎯 Protect Your Business Now: Request a Commercial Property Insurance Quote 🎯
Or, if you prefer, give us a call at (905) 576-7770 to speak directly with one of our expert brokers. Let’s have a conversation about safeguarding your business assets. No pressure, no obligation – just friendly, professional guidance from the team at Roughley Insurance Brokers.
Don’t let the unexpected jeopardize your livelihood. With Roughley by your side, you can face the future with confidence, knowing that your buildings, equipment, inventory – everything you’ve built – are protected by the very best commercial property insurance Ontario has to offer. We look forward to helping you fortify your business and providing the peace of mind you deserve. Let’s get started!
