Why Multi-Tenure Properties Carry More Risk
If you own or manage a multi-tenure commercial site — such as an industrial estate, warehouse complex, or mixed-use retail block — you already know that one tenant’s activities can affect everyone’s insurance terms.
Insurers assess the entire building’s risk profile, not just individual units.
A single high-risk occupier can:
- Drive up the premium for all units, or
- Lead to a decline in cover for the entire premises.
Understanding and controlling these shared risks is vital for tenant selection, lease structuring, and insurance compliance.
What Is a Multi-Tenure Property?
A multi-tenure commercial property is any building divided into multiple self-contained units, typically let to:
- Independent businesses
- Sole traders or franchises
- Light industrial or logistics firms
- Retailers and service providers
Insurers will evaluate:
- Each tenant’s trade activity and risk exposure
- How operations interact with shared systems (e.g. electrical, fire alarms, water)
- The adequacy of structural fire separation and access routes
High-Risk Trade Examples (and Why They Matter)
Spray Painting / Vehicle Body Shops
- Use of flammable paints and solvents
- Require specialist extraction and fire-suppression systems
Disclose: Spray-booth specifications, storage of materials, and fire separation.
Foam, Upholstery & Bedding Manufacturers
- Handle polyurethane foam, which ignites rapidly and emits toxic smoke.
Risk: High-intensity fire spread and total property loss.
Controls: Fire-retardant storage, sprinkler systems, good housekeeping.
Tyre & MOT Garages
- Store waste tyres, oil drums, and aerosols.
Risk: Arson targets and environmental contamination.
Best Practice: External tyre cages, extinguishers, and waste-removal contracts.
Carpenters & Joinery Workshops
- Sawdust accumulation and paint use increase combustibility.
Risk: Dust ignition or fire spread between units.
Controls: Extraction systems, strict cleaning regime, sealed paint stores.
Restaurants / Takeaways in Mixed-Use Blocks
- Use of deep-fat fryers, late-night trade, and ductwork buildup.
Risk: Kitchen or grease-duct fires spreading to other tenants.
Checklist: Fire-suppression systems, duct-cleaning logs, operating-hour limits.
How to Manage Risk in Multi-Tenant Sites
- 1. Full Tenant Disclosure
- Keep an updated list of all tenants and activities.
- Provide floorplans showing unit numbers and operations.
- 2. Contractual Fire-Safety Obligations
- Include lease clauses requiring tenants to:
- Maintain extinguishers and fire doors
- Clean extraction ducts and spray booths
- Store flammables securely
- Include lease clauses requiring tenants to:
- 3. Risk Surveys & Documentation
- Conduct annual fire-risk assessments.
- Maintain up-to-date layout drawings and inspection logs.
- 4. Shared System Compliance
- Ensure communal electric, alarm, and water systems meet current regs.
- Each tenant should maintain their own portable appliances (PAT).
- 5. Routine Inspections
- Inspect all units and shared areas periodically.
- Photograph high-risk zones and document corrective actions.
Insurance Best Practices for Landlords
- Declare every trade accurately to your broker.
- Update occupancy schedules as tenants change.
- Require RAMS (Risk Assessment & Method Statement) from new tenants.
- Record and disclose any hazardous-substance storage.
Common Mistakes That Invalidate Cover
- Describing tenants simply as “light industrial” — too vague.
- Ignoring unapproved tenant modifications (e.g. spray booths).
- Failing to disclose shared or communal flammable storage.
- Allowing high-risk trades without additional fire protection.
How SRS Insurance Supports Landlords & Property Managers
At SRS Insurance, we work with commercial landlords, block managers, and agents to manage these complex risks efficiently.
We:
- Assess multi-tenant property risk profiles
- Liaise with underwriters to keep premiums competitive
- Produce risk summaries for smoother renewals
- Advise on tenant-vetting and compliance procedures
Our goal is to ensure your property remains fully insurable, compliant, and profitable — even with varied or high-risk occupants.