How do I help my commercial clients find the right building for their needs and protect their property investment?

Navigating the evolving risks of commercial properties means brokers require a proactive approach to helping clients select the right building and adequately safeguard their investment. Jason Ostapeic, Unica Insurance’s Senior Risk Control Consultant, discusses hidden exposures and risk control strategies your clients need to mitigate risks they may not know they have.

As businesses grow and new opportunities arise, many are expanding their footprints.

Whether it’s securing additional warehouse space, upgrading office environments, or investing in a bigger retail plaza, selecting the right commercial property is a critical part of their growth strategy.

By guiding clients through complex real estate decisions and risk management strategies, brokers have an important role to play as trusted advisors.

Understanding Commercial Property Risks

“Businesses may miss crucial exposures when selecting a building,” says Jason Ostapeic, Senior Risk Control Consultant at Unica Insurance. “Not addressing these risks could pose significant challenges down the road.”

Risks often include inadequate sprinkler systems, aging infrastructure like asbestos insulation or outdated plumbing, and tenant-specific risks that leave your clients vulnerable to liability losses.

Aligning Tenant Needs with Property Protections

“Tenant selection is key,” explains Ostapeic. “Understanding what commodities a tenant stores and how their operations align with a building’s existing protections — like sprinkler systems — is vital. Without this alignment, you’re looking at increased risk and potential insurance challenges.”

Changes in building occupancy can also pose significant hazards. For example, a space previously used for metal manufacturing may now store rubber tires — a shift that could render its existing sprinkler system inadequate. Tires are combustible, do not absorb water, and their hollow centers enable fire to spread quickly and produce toxic smoke. These characteristics make firefighting especially difficult. These specific tire-related fire risks require special considerations when managing occupancy changes in any commercial property.

“We often see tenants move in without realizing the building’s infrastructure doesn’t meet their needs,” says Ostapeic.

Aging buildings add further complexity. Corroding galvanized plumbing can lead to costly water damage and mould, while frayed electrical wiring increases the risk of fires. “Clients may not realize that the true cost of a property isn’t just its purchase price but also the investment required to bring it up to safe standards,” notes Ostapeic.

The Importance of COPE in Risk Control

To help brokers and their clients navigate these challenges, Unica reminds brokers to utilize COPE (Construction, Occupancy, Protection, and Exposure) as a best practice to assess and mitigate risks in commercial properties.

“Using COPE as a mental checklist ensures buildings are evaluated for risks before tenants move in,” Ostapeic explains. “For example, we assess construction materials to identify combustible elements, evaluate occupancies for specific hazards, and ensure sprinkler systems are adequate for the intended use.”

Unica provides hands-on risk control expertise, offering guidance to clients on finding buildings that meet their operational needs while conforming to National Fire Protection Association safety codes and standards that addresses considerations such as sprinklers, flammable and combustible liquid storage and life safety codes. This includes helping clients identify risks like aging infrastructure, inadequate fire safety measures, and hazards posed by tenant operations.

“When you consider retail plazas with tenants that cater to seniors — like those with medical offices, pharmacies, or home-comfort retailers — it’s essential to evaluate accessibility and safety features, such as elevated curbs and walkways,” Ostapeic says.

Value of Risk Control Programs

“Many business owners view risk control programs as an added expense or a precursor to higher premiums, but brokers can explain that the true value of these programs lies in identifying exposures that might otherwise go unnoticed,” Ostapeic says.

He adds, “It’s about having a fresh set of eyes to uncover potential hazards your client might not be aware of. These programs help prevent losses that could be devastating, not only financially but also to a business’s reputation.”

Unica’s risk control service is designed to proactively safeguard clients by addressing risks before they turn into costly claims.

Comprehensive Protection for Their Investment

With Unica, your clients can operate in their new buildings confidently, knowing their investments are well protected by a comprehensive insurance offering.

Unica’s Commercial Building Owners Connection™ provides robust protection tailored for owners of office buildings and commercial, retail, and industrial plazas. Key benefits include coverage for rental income, debris removal, mortgage rate guarantee, equipment, and employees.

This protection is backed by Unica’s best-in-class claims experience, ensuring your clients can recover quickly after a loss. Prioritizing response times and communication means over 97 percent of new claims receive contact within the first two hours. “With a dedicated team of technically trained adjusters, Unica is committed to helping brokers protect their clients’ investments and providing peace of mind when it’s needed most,” Ostapeic adds.

What to Tell Your Clients

Helping clients find and protect the right commercial property demands a collaborative approach to risk management. Unica recommends these tips brokers can share with their clients:

1. Know your tenants: Understanding the operations and needs of your tenants is critical to assessing potential risks. Evaluate how their business activities, storage practices, and occupancy type may impact fire protection, safety, and overall liability.
2. Develop a Preventative Maintenance Plan: Proactively maintain your property’s critical systems — like plumbing, electrical, and HVAC — to prevent costly failures. Incorporate time/usage-based maintenance schedules and advanced technologies such as sensors to identify risks before they escalate.
3. Inventory your assets: Keep a detailed list of all equipment and infrastructure in your building, including make, model, serial numbers, and locations. This can help streamline maintenance, repairs, and replacements while ensuring no asset is overlooked.
4. Prioritize critical equipment and infrastructure: Focus resources on maintaining and upgrading essential systems, like sprinkler systems and safety alarms, to minimize potential disruptions. Pay special attention to aging plumbing and electrical infrastructure, which are leading causes of water damage and fires.
5. Reduce liability and improve accessibility: Minimize slip, trip, and fall risks by maintaining safe, accessible building environments year-round. This is especially important in winter months when snow and ice add hazards, and even more so where senior citizens will have access. Ensure features in commercial buildings, such as walkways, curbs, and lighting, are suitable for all visitors — especially buildings with medical or retail tenants that attract an aging population. Secure agreements with contractors and tenants that include proof of insurance and being named as an additional insured.

Discover how Unica Insurance can help you protect your clients with tailored commercial coverage backed by claims and risk expertise.

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