Commercial Property Insurance Ontario

commercial property insurance ontario
Feb 03 2022 2 min read

While liability insurance usually comes to mind first when insuring a small business, protecting the brick and mortar building is often a close 2nd.

Insurance for a commercial building in Ontario is not the same as a residential property.

Although both face many of the same types of property risks (i.e. fire and theft) they have different levels of liability thresholds, taxation factors and other legal requirements at play.


Commercial property insurance claims have been on the rise in Canada over the past few decades.

In 2020, there was an approximate total of $5.54 billion worth of commercial property insurance claims compared to a much lower approximate of $1.31 billion back in 1990. (1)

What has caused this increase?

While there are several contributing factors, the primary cause is said to be the increased frequency and severity of natural disasters. (2)

The number of climate-related disasters in Ontario tripled during the 1900s, with the frequency of winter storms having an especially sharp rise in the latter 3rd of the century. (3)

While insurance companies now face the growing unpredictability of volatile weather and insurance claims, it’s the business owners themselves who must deal with the higher levels of uncertainly and insurance costs when it comes to their business insurance.


Commercial property insurance is meant to protect the physical assets of a business from loss or damage caused by risks such as:

  • Fire
  • Natural disasters (i.e. wind or ice storms)
  • Vandalism
  • Water
  • Burglary & Theft

Examples of the types of physical assets that can be covered are:

  • Building (including windows and doors)
  • Equipment
  • Stock and inventory
  • Furniture
  • Outdoor signs and fencing
  • Lighting and security systems
  • Customer and employee property

You should speak with your insurance provider about combining commercial property insurance with other commercial insurance products like commercial liability insurance and commercial auto insurance.

commercial property insurance quote


What a business pays for commercial property insurance can vary based on their industry, size and construction type of building, amount of equipment stored on-site, whether or not it’s bundled with other business insurance products like liability insurance, or other types of businesses located in the same or neighbouring building.

While some smaller businesses may pay as little as only $1,000 per year for their commercial property insurance, major corporations can be paying as much as thousands more.

The average small to medium-sized business in Ontario is typically looking at around $2,000 to $4,000 per year on average to insure their commercial property but if you’re looking for a more accurate quote please submit a commercial property insurance quote request here.

Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.

Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.



1 – statista.com/statistics/470885/net-claims-incurred-commercial-property-insurance-canada/
2 – businessinsurancehelp.ca
3 – acer-acre.ca


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