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Finding the Right Warehouse or Industrial Property Insurance in May 2025
Learn how to get great (and affordable!) insurance for your industrial property with our comprehensive guide.
Industrial investments have been hot in recent years — even if they've started to cool a bit.
If you've gotten in on the right deals, you know that they're still not easy investments. Whether you own a manufacturing facility or a distribution center, industrial assets are specialized.
It turns out that industrial property insurance can be just as specialized — and complicated. There's no one-size-fits-all policy out there, and a wide range of factors (your tenants, your location, and even the age of your building) influence what insurance is the best for you.
Industrial property insurance is quite often a lot more expensive than you might like to believe. And premiums are jumping every year. Maybe not by as much as your average multifamily policy, but increases of 50% year over year are far from unheard of.
In this article, I'll walk you through the key types of insurance for industrial properties, factors affecting premiums, and best practices for managing risks.
Essential Types of Insurance for Industrial Properties
Industrial properties require a comprehensive insurance package to protect against various risks. Property insurance is a fundamental component, covering the physical structure of your warehouse or industrial building, as well as any permanently installed equipment or machinery.
Liability insurance is equally important, safeguarding your business against claims of bodily injury or property damage that may occur on your premises. This coverage is especially important for industrial properties, where heavy machinery, equipment, and vehicles can increase the risk of accidents.
Business interruption insurance helps protect your income if a covered event, such as a fire or natural disaster, forces your tenants to suspend their operations temporarily. This coverage can help you maintain your cash flow while repairs are being made.
Depending on your location and specific operations, additional coverages like flood insurance, earthquake insurance, and environmental liability insurance may be necessary to fully protect your industrial property.
Factors Influencing Industrial Property Insurance Premiums
Several factors can impact the cost of insuring your industrial property. The location of your property, including its proximity to natural hazards or high-crime areas, can affect premiums. The age, condition, and construction type of your building also play a role in determining insurance costs.
The nature of your tenants' businesses and the specific operations conducted on your property can also influence premiums. Industrial properties with higher-risk activities, such as manufacturing or chemical storage, may face higher insurance costs due to the increased potential for accidents or property damage.
Your property's safety features, risk management practices, and claims history are also considered by insurers when setting premiums. Properties with robust safety measures, well-maintained equipment, and a track record of minimal claims may be eligible for lower rates.
Managing Risks in Industrial Properties
Implementing effective risk management strategies is crucial for protecting your industrial property investment and minimizing insurance claims. This includes regularly inspecting and maintaining your property, ensuring all equipment and machinery are properly serviced and compliant with safety regulations.
Developing and enforcing strict safety protocols for your tenants and their employees can help reduce the risk of accidents and injuries on your property. This may include requiring the use of personal protective equipment, implementing hazard communication programs, and conducting regular safety training.
Partnering with a specialized insurance broker who understands the unique needs of industrial properties can provide valuable guidance in identifying and mitigating potential risks. They can also help you develop a comprehensive risk management plan tailored to your specific property and tenant mix.
The Janover Insurance Group Advantage
At Janover Insurance Group, we specialize in providing robust insurance solutions for industrial properties, including warehouses and manufacturing facilities. Our extensive network of top-rated insurers allows us to offer a wide range of coverage options tailored to your specific needs and budget.
Our experienced team has a deep understanding of the unique risks and exposures faced by industrial property investors. We work closely with you to identify potential vulnerabilities and develop customized insurance strategies to protect your investment.
Don't leave your industrial investment exposed to unnecessary risk. Contact Janover Insurance Group today to get your complimentary consultation and take the first step towards securing the optimal insurance package for your property.