Multi-Tenure Commercial Properties

Insurance Risk Guide for Landlords & Property Managers

Why Multi-Tenure Properties Carry More Risk

If you own or manage a multi-tenure commercial property — such as a trading estate, warehouse complex, or mixed-use site — you’ll know the importance of securing competitive insurance.

But what many landlords don’t realise is that the type of business occupying each unit directly impacts the insurability of the entire building — not just their unit.

One high-risk tenant can drive up the premium for everyone, or even result in cover refusal.

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What Is a Multi-Tenure Property?

A commercial property divided into multiple units, often let to:

  • Independent businesses
  • Sole traders or franchises
  • Manufacturing or logistics firms
  • Retailers or service providers

Insurers will look at each tenant’s trade use, plus how they interact with:

  • Other tenants
  • Shared services (e.g. electric, water, fire exits)
  • Structural fire separation

High-Risk Trade Examples (and Why It Matters)

  1. Spray Painting / Vehicle Body Shops
  • Flammable paints and solvents
  • Spray booths require specialist extraction and fire suppression

Insurer Risk: Fire, explosion, chemical inhalation

Must be disclosed: Booth details, material storage, fire separation

  1. Foam, Upholstery & Bed Manufacturers
  • Store and cut polyurethane foam (highly flammable)

Insurer Risk: Rapid flame spread, toxic smoke, high property damage potential

Must be disclosed: Fire-retardant storage, sprinkler system (if any)

  1. Tyre & MOT Garages
  • Waste tyres, oil drums, aerosols on site

Insurer Risk: Arson (tyres are targeted), poor housekeeping, environmental risk

Best practices: Separate tyre cage, fire extinguishers, waste removal contract

  1. Carpenters & Joinery Workshops
  • Sawdust + paint = high combustibility

Insurer Risk: Dust ignition, poor extraction systems

Control: Dust extraction system, housekeeping protocol, separation from others

  1. Restaurants / Takeaways in Mixed Use
  • Risk of deep fat fryers, late night trade, poor duct cleaning

Insurer Risk: Kitchen fires, odour/grease duct fires

Checklist: Fire suppression in kitchens, duct cleaning log, limited hours

How to Manage Risk in Multi-Tenant Sites

  1. Full Disclosure of All Tenants’ Activities
    • List all current trades + unit numbers
    • Share material storage, operations, risk processes
  2. Contractual Fire Safety Obligations
    • Lease clauses requiring tenants to:
      • Maintain extinguishers and fire doors
      • Clean ducts and spray booths
      • Store flammables in locked cages
  3. Risk Surveys & Floorplans
    • Annual fire risk assessments
    • Up-to-date layout drawings with tenant usage
  4. Communal Systems Compliance
    • Shared electric, alarms, water must meet current regs
    • Each tenant responsible for their own PAT and system safety
  5. Regular Inspections and Documentation
    • Keep a log of safety visits or any tenant works
    • Photograph high-risk areas

Best Practices for Insurance Compliance

  • Declare each trade clearly and honestly to your broker
  • Update occupancy schedules regularly
  • Ask new tenants for a RAMS (Risk Assessment & Method Statement)
  • Require tenants to declare hazardous substances stored onsite

Common Mistakes That Can Invalidate Cover

  • “Just saying it’s light industrial” – not specific enough
  • Not checking if a spray booth is properly vented or certified
  • Ignoring tenant activity changes (e.g., adding spray booths later)
  • Not disclosing shared flammable material storage areas

How Qudos Can Help

We work with landlords, block managers and commercial agents to:

  • Assess multi-tenant building risks
  • Liaise with underwriters to keep premiums realistic
  • Create risk summaries to support quotes
  • Provide risk management advice for tenant vetting