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Insurance Bureau of Canada/nt/Business/Risk Management/Commercial Property/Commercial Property Risk Management

Commercial Property Risk Management

​​The physical location where you conduct business can be critical to your organization’s success. When insuring your commercial property, there are many opportunities to identify and reduce risks as well as control the cost of insurance.

A Systematic Approach

To manage risk, follow these steps:

  1. Identify and analyze potential loss exposures
  2. Examine the feasibility of alternative risk management techniques
  3. Select the best risk management technique
  4. Implement the technique
  5. Monitor the program.

Examples of Loss Exposures

While every industry is different, potential losses to consider include:

  • Physical property, such as buildings, stock and equipment
  • Valuable information that is critical to business operations
  • Reductions in the value of your products or services after a loss
  • Costs to repair or replace damaged property or equipment
  • The impact a loss could have on your ability to conduct business
  • Loss of revenue in the event of a business interruption
  • Extra business-related expenses
  • Direct and indirect losses
  • The personal property of employees while on-site.

General and industry-specific risk management activities can help to prevent losses associated with commercial property. Your insurance representative can be a helpful resource for appropriate risk management activities that your organization can undertake.