Climate change is increasing the frequency and severity of extreme weather around the globe. And Canada can feel like ground zero. Environment and Climate Change Canada cautions, “Canada’s climate is warming twice as fast as the global average… As the planet warms, extreme weather events will become increasingly common.”
The 2024 heat waves, wildfires, flooding and hailstorms that led to catastrophic (CAT) insurance claims may be a way of life for the foreseeable future. In addition to taking measures to arrest climate change, risk managers in Canadian businesses need to consider what can be done to protect their commercial properties.
Our Aviva Risk Management Solutions team offers risk mitigation actions to reduce the risk of business interruption and loss from some of the most common CATs.
Reduce wildfire risks
1. Evaluate your risk and develop an emergency plan
Consider the unique risks based on your location and proximity to forests or wildfire-prone areas. Develop a comprehensive emergency response plan that includes evacuation routes, communication procedures and assigning roles to employees during a crisis. Train employees regularly on emergency protocols and conduct fire drills.
2. Use fire-resistant building materials
Ensure buildings are fire-resistant by using non-flammable materials for roofing, siding and landscaping (e.g. fire-resistant plants). Consider installing fire suppression systems like sprinklers and fire-resistant barriers. And maintain a defensible space around the business by clearing vegetation and debris that could fuel a fire.
3. Remove vulnerable outdoor storage
Stow all unsecured plastics and wood, including trash cans, outdoor furniture and debris. Yard storage can be placed into metal shipping containers. Safely store or relocate ignitable liquids. Also, look for combustibles in unexpected places like crawl spaces.
4. Secure the building envelope
Close openings, such as windows, doors, roof vents and skylights. Cover vents with wire mesh to prevent flying embers from entering the building.
5. Build community partnerships
Collaborate with local fire departments and emergency services to stay informed about potential risks and response times. If you’re in a higher-risk area, access government resources such as wildfire preparedness guides (BC, Alberta, Government of Canada). And consult your insurer to be clear about your coverage and obligations.
Reduce flooding risks
1. Conduct a flood risk assessment
Assess the flood risk of your business location. Identify vulnerable areas such as basements, storage areas and important equipment. You can work with flood specialists to map out potential scenarios and risk levels and consult resources such as:
- Adapting to rising flood risk, Government of Canada
- Prepare for floods, Government of Canada
- Install a backflow prevention device, Reduce Flood Risk
2. Develop a flood response plan
Create an actionable flood response plan that outlines emergency procedures, contact points and communication strategies. Ensure all employees are familiar with the plan, including safe evacuation routes and protecting critical assets.
3. Invest in flood-resistant infrastructure
Install barriers, flood shields and drainage systems around critical areas. Consider elevating electrical systems, HVAC equipment and valuable machinery to minimize water damage.
4. Review your insurance coverage
Evaluate your existing insurance policy to ensure it covers flood risks. Consider adding business interruption insurance to safeguard against income loss due to operational downtime caused by floods.
5. Conduct regular maintenance and monitoring
Keep drains, gutters and stormwater management systems clear of debris. Regularly inspect and maintain flood defenses, pumps and other protective infrastructure to ensure they’re in top condition. And implement real-time flood monitoring tools to stay informed about potential threats.
Reduce wind and hail risks
1. Reinforce building structures
Strengthen roofs by using impact-resistant materials, such as metal roofing or asphalt shingles designed to withstand hail damage. Install storm shutters or reinforced windows to protect glass from shattering due to wind or hail, and secure loose items like HVAC units and signage to prevent them from being torn off by high winds and causing damage.
2. Protect vehicles and equipment
Park company vehicles and valuable outdoor equipment in covered or enclosed spaces, such as garages or carports, to prevent hail damage. If permanent shelters aren’t available, use hail blankets or tarps to cover exposed equipment and vehicles when a storm is imminent.
3. Maintain the property
Regularly inspect and trim trees around the property to reduce the risk of branches breaking off during strong winds. Clear gutters and downspouts to prevent water buildup during storms, which can lead to structural damage or flooding. Repair any damaged areas of the building’s exterior (roofing, siding, etc.) to prevent them from becoming vulnerable during high winds.
4. Install wind-resistant landscaping
Choose wind-resistant plants and trees that are less likely to break or uproot during a storm. Use heavy-duty, well-secured fencing or windbreaks like walls or hedges to deflect strong winds and protect the property’s surroundings.
5. Use protective equipment
If you have rooftop HVAC equipment, install hail guards to protect it. If you have solar panels on your facility or property, install temporary or permanent covers or adjust the angle of the panels to protect them from direct impact.
Want more information about reducing CAT risks?
Aviva Risk Management Solutions has professional risk consultants across Canada who can provide expert advice and resources. Reach out to us at arms.canada@aviva.com
