5 Common Misconceptions About Commercial Property Insurance

Don’t Let These Myths Hurt Your Business

Running a business is hard work. You have many things to worry about. Insurance should not be one of them.

But there is a problem. Many business owners believe wrong things about their commercial property coverage. These myths can cost you a lot of money.

Do you own a store? Do you run an office? You need to know the truth. Your business needs the right protection.

Let’s fix these myths right now.

Why You Need to Know This

Here is a scary fact. 73% of businesses do not have enough insurance. That’s what Hub International found in 2025.

Even worse? 96% of companies do not check their property values each year.

In Canada, this is a big deal. Insurance companies paid out $7.6 billion in 2024. Why? Bad weather and natural disasters.

At Reliant Insurance, we see this every day. Business owners do not understand their coverage. Then something bad happens. They are not protected.

We want to help you. Let’s talk about what your policy really covers.

Myth #1: General Liability Covers Property Damage

This is the biggest myth we see. Many people think general liability protects their building. It protects their equipment too.

It does not.

Here is the truth:

General liability helps when someone else gets hurt. It helps when you damage their property. But your own things? That is different.

You need commercial property insurance for your stuff. Your building. Your equipment. Your products.

Here is an example. A customer falls in your store. General liability pays their doctor bills. But what if a fire burns your inventory? That is when business property insurance helps you.

What you should do:

Talk to an insurance broker. Look at both policies. Make sure you have enough coverage. Know the difference between the two types.

Myth #2: All Natural Disasters Are Covered

Many business owners think this. They believe their commercial property coverage protects them from everything.

This is not true.

Here is what happens:

Your policy covers some things. Fire? Yes. Wind damage? Yes. Theft? Yes.

But floods? No. Earthquakes? No. You need extra coverage for these.

This is important in Canada. We get more bad weather now. Insurance companies paid $1.6 billion for natural disasters in 2025. And we are only in October.

Many business owners learn this too late. The disaster happens first. Then they find out they have no coverage.

What you should do:

Read your policy. Ask about what is not covered. Do you live near water? Do you worry about earthquakes? Buy the extra coverage.

It costs more money. But it is cheaper than paying for everything yourself.

Myth #3: The Landlord’s Insurance Covers Me

You rent your space. Your landlord has insurance. So you are safe, right?

Not really.

Here is the truth:

Your landlord’s insurance covers the building. The walls. The roof. The floors.

But it does not cover your things. Not your equipment. Not your inventory. Not your furniture.

It does not cover the changes you made to the space. It does not cover lost income if you must close.

Think about this. A pipe breaks. Water floods your store. The landlord’s insurance fixes the building. But what about your damaged products? What about your broken equipment? What about the money you lose when you are closed? You pay for all of that.

Unless you have your own commercial property insurance.

What you should do:

Get your own policy. Even if you rent. Cover your business items. Include the changes you made to the space. Add coverage for lost income too.

Myth #4: My Coverage Amount Stays the Same

Here is a big mistake. Business owners buy insurance. They pick a coverage amount. Then they never change it.

This is bad.

Here is why:

Research shows 68% of buildings do not have enough insurance. Many are short by 25% or more. Almost 90% of buildings are worth more than their insurance.

Why does this happen?

• Property values go up
• You buy new equipment
• Building costs go up
• Your inventory grows
• You make improvements

All of these things cost money. But your insurance stays the same.

What you should do:

Check your policy every year. Talk to your broker.

Get replacement cost coverage. This pays to replace things at today’s prices. Not old prices.

At Reliant Insurance, we help businesses check their values every year. Do not wait until it is too late.

Myth #5: Small Businesses Cannot Afford This Insurance

Many small business owners skip insurance. They think it costs too much. They think they do not need it.

This is wrong.

Here is the truth:

Commercial property insurance costs less than you think. It is a small part of what you spend on your business. Much less than what you would lose in one disaster.

Think about this. Can you afford to lose everything?

Good news. Insurance costs are going down. Prices dropped 3% to 7% in 2024 and 2025. You can get coverage for less money now.

You can also pick what you need. You do not need the most expensive policy. You need the right one for you.

What you should do:

Get prices from different companies. Talk to a broker. Many things change your cost:

• Where your business is
• How old your building is
• What security you have
• Your history with claims
• What type of business you run

A good broker can help you save money. You will not lose important coverage.

Here are ways to pay less:

• Pick a higher deductible
• Add security systems
• Put in fire alarms
• Buy all your insurance from one company
• Keep a clean record
• Be careful to avoid claims

Know the Truth to Stay Safe

Now you know the facts. You know what commercial property insurance really does. You know what it does not do.

These five myths cost business owners a lot of money. Do not let this happen to you.

Insurance can be hard to understand. But you do not have to do it alone.

At Reliant Insurance, we help Canadian business owners. New businesses. Old businesses. All businesses.

We look at your coverage. We find problems. We give you answers that work for you. And fit your budget.

Ready to protect your business?

Call Reliant Insurance today. Let us check your commercial property insurance. We make sure you have what you need.

Your Questions Answered

Q1: What is the difference between commercial property insurance and general liability insurance?

Commercial property insurance covers your building and things. It protects against fire and theft. General liability insurance protects you when someone gets hurt. Or when you damage their things. You need both kinds.

Q2: How much coverage do I need?

You need enough to replace everything at today’s prices. Not old prices. Things cost more now. A broker can help you find the right amount.

Q3: Does this insurance cover lost income?

Not unless you add it. You can add business interruption coverage. This pays your lost income. It helps with bills too. This is good if you must close for repairs. It can take months to reopen.

Q4: What about floods and earthquakes?

Most policies do not cover these. You need extra coverage. Canada gets more bad weather now. Talk to your broker about your risks.

Q5: How can I pay less for insurance?

You can do many things. Pick a higher deductible. Add security. Put in fire safety equipment. Buy all your policies from one place. Keep a good history. Be smart about risks. But do not cut coverage you need. A broker can help you find the right balance.

Need commercial property insurance in Canada? Visit Reliant Insurance today. Call our team. We protect your business.