An Office Can Also Be a Risk to Those Who Never Occupy It

In commercial real estate, insuring a property not only protects the building and what it contains, but can also cover certain damages caused to third parties. For a company, it can also limit the risks that a temporary loss of that space would pass on to its own clients.

That exposure can translate into specific business requirements. Some companies require suppliers to provide proof of certain insurance coverage as a condition of doing business with them, ranging from liability and property insurance to, in some cases, business interruption coverage¹.

These coverages are part of a market that reached an estimated value of $11.9 billion in Mexico in 2025, equivalent to about 40% of the country’s $29.6 billion insurance market².

However, insuring a property does not by itself guarantee the continuity of what happens inside it. Business interruption coverage can compensate for certain lost income and expenses resulting from a covered loss while a company restores its operations, but restoring systems, recovering information, moving activities to another location or maintaining services also requires business continuity measures³.

In a market like Mexico, which has 8.7 million square meters of office space and nearly 5,200 tenants across major economic hubs such as Mexico City, Guadalajara and Monterrey, the fact that requirements for a space can come not only from the owner—particularly when it is institutional—but also from the occupant’s own clients means that a characteristic directly tied to the property can become part of a company’s ability to access commercial demand and, from the owner’s perspective, the conditions under which the property can be marketed⁴.

This is particularly relevant given the insurance protection gap that persists in Mexico. According to the Mexican Association of Insurance Institutions, insurance penetration reached 2.9% of GDP in the first half of 2026, still “below comparable economies,” while millions of people, families and businesses remain exposed to risks without financial protection mechanisms. In that context, figures attributed to the association indicate that only 18% of companies in the country have some insurance.

For the office sector, a lack of coverage not only increases exposure for those occupying the properties, but also reduces certainty for companies that depend on the activities carried out within them. According to the Allianz Risk Barometer 2026, business interruption was the third-largest business risk globally, cited by 29% of participants, while a Munich Re survey found that 45% of respondents identified it among their top insurable risks.

This suggests an office can indirectly become part of the infrastructure of companies that never occupy it: when it provides services on which third parties depend, an inability to use that office can disrupt an economic chain beyond the building itself. Its risk, therefore, depends not only on what may happen to the property or its occupant, but also on the economic reach of the operation it houses.

Today, understanding an office means looking beyond its four walls. We can’t insure your office, but we can help you better understand the market around it. Explore SiiLA’s smart solutions under “Products” or contact us at contacto@siila.com.mx.

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¹ This practice appears in contractual terms and supplier policies applicable in Mexico, although the documents reviewed are not limited to office use. Clarios, for example, requires certain suppliers to provide proof of coverage through certificates of insurance and lists property insurance with business interruption among the types of coverage it may require; AES Mexico and GE Vernova establish liability and other insurance requirements, as well as the delivery of certificates; and Maxicarne requires insurance for certain types of work and may request proof that coverage remains in effect. In public procurement, agencies such as Mexico’s Attorney General’s Office may also require liability policies when there is a risk of damage to property, personnel or third parties. Services are even designed to manage these requirements: Travelers notes that certificates of insurance are commonly used in contracts, leases, and relationships with vendors and contractors to document coverage, limits, and effective dates, while Aon offers vendor risk management services that include tracking insurance requirements and certificates.

² Both figures are IMARC Group estimates for 2025. The firm defines Mexico’s commercial insurance market through five categories: liability insurance, commercial motor insurance, commercial property insurance, marine insurance and other insurance. The $11.9 billion figure therefore represents the commercial insurance market as a whole, not exclusively insurance for offices or commercial properties. The percentage is calculated by comparing that estimate with the $29.6 billion the same firm estimates for Mexico’s overall insurance market.

³ Coverage and its scope depend on the terms of each policy. Chubb Mexico, for example, includes business interruption within its property insurance offerings, which may compensate for certain economic losses resulting from an interruption caused by covered damage. Insurance does not, however, amount to a business continuity system. For reference, ISO 22301 establishes a framework for organizations to prepare for, respond to and recover from disruptions, while ISO/TS 22318 extends those principles to supplier relationships and supply chain continuity.

⁴ Insurance requirements also appear specifically in connection with office leasing in Mexico. At Corporativo Río Becerra in Mexico City, a lease covering 1,986.92 rentable square meters of corporate office space requires the tenant to obtain at least $2 million in third-party damage and liability insurance, with the landlord as the first beneficiary. The tenant must deliver the policy within 30 days of the start of the lease, or the landlord may terminate it. In another lease, the tenant must maintain insurance against loss of or damage to the leased property for at least 100% of the building’s insurable value—defined as its replacement cost—in addition to general liability insurance. Finally, the requirement can arise at the marketing stage itself. Pincali, for example, includes an annually renewable liability policy among the requirements for leasing a 362-square-meter office at Campos Elíseos 223 in Polanco, designated exclusively for office use.