Welcome to the Harbor Consulting Group Podcast! In the inaugural episode, Roger Barbieri and Jeff Evans welcome Jon Gilbert, Alliant M&A, to look into the complexities of commercial real estate insurance.

Across the country, insurance premiums are climbing. According to the Deloitte Center for Financial Services, the average insurance costs for commercial real estate properties have nearly doubled over the last 10 years—due to factors like inflation in construction costs, extreme weather and more conservative underwriting, which is limiting available coverage.  

From severe storms to fires, unexpected events can prevent businesses across industries from operating normally. As a result, business owners can face significant financial slowdowns, reputational damage and an inability to fulfill orders and provide services. This is where business interruption (BI) insurance becomes critical.

The due diligence process is an integral component of the loan transaction lifecycle, reducing uninsured risks for lenders and ensuring regulatory compliance. However, while it is common for third-party consultants to review certificates of insurance, many lenders do not require a full policy review.