Fire, flood, and insects: What damages will my commercial insurance cover?


When it comes to insurance, do you see it as being better to be prepared for anything or it doesn’t have any value? In 2023, Albertans braced for the impacts of severe weather and the damages that it can bring. Province-wide evacuations as a result of flooding and forest fires have brought new anxiety about being prepared to leave at a moment’s notice. At Sadler Insurance, we want to help give you peace of mind that your business is covered in times of uncertainty. From fires to floods to infestations, we will break down what types of commercial insurance are essential for protecting your business.

Extreme weather: Get the right insurance protection

As we are increasingly feeling the effects of climate change, insurance policies are adjusting to reflect the new threats that our customers are experiencing. From farming to oil and gas to construction, severe weather impacts everyone, and having coverage is vital to help your business continue. A common misconception that business owners have is that property insurance will be enough to cover you in the case of damage from severe weather when in reality basic property insurance covers loss from fire and lightning. Additional layers of protection arise from All Risk insurance policies that can extend to overland flooding, windstorms, hail, smoke, and damage caused by rioting. At Sadler Insurance, we want to help you cover every base, and combining various insurance policies can help you to be prepared for wild weather.

Commercial Auto Insurance can give you peace of mind for each company vehicle operating on and off-site. Still, commercial auto policies also carry an all-perils coverage option that can protect your vehicle from the destruction caused by fire.

Commercial Property Insurance is the foundational insurance coverage for your business and everyday operations, while also protecting you from heavy repair costs to the physical building as a result of flooding or fire. As a rule of thumb, it is vital to create a content or inventory list for each asset and item on the property and keep it up-to-date. This inventory list should be submitted in conjunction with your claim in the case of damage.

Business Interruption Insurance gives you peace of mind that when emergencies occur, you won’t lose your business. The purpose of business interruption insurance is to offset income lost from unexpected closures or damage repairs. You can ensure that you have funding available to cover your costs and still pay your employees.

Equipment Breakdown Insurance covers a variety of equipment, from work computers to heavy equipment machinery. Your insurance can help to cover replacement costs in the event of vandalism, damage from weather, or costly breakdowns. Your content inventory list can help you to keep track of your equipment and identify what has been damaged or will need to be fully replaced.

Fires and floods: What is covered under my insurance?

Flood damage protection has continued to grow after hurricane threats have increased the need to be prepared. As a brief snapshot, your commercial insurance can cover each of the following in the case of a flood:

  • Leased or owned buildings and structures
  • Furniture and equipment
  • Inventory
  • Computers
  • Property in transit
  • Lost revenue
  • Records of accounts
  • Ordinary payroll
  • Leasehold improvements

If you are at risk of overland flooding this summer from heavy rainfall, our qualified team of insurance brokers at Sadler Insurance can help you to understand what your current insurance plans cover and find the right commercial insurance for your specific needs and threat assessment.

Are pest infestations covered under commercial insurance?

Pest infestations can quickly incur large costs for property owners and bring the threat of property damage if they are not properly addressed. Unlike fire and flood coverage, personal and commercial property insurance policies often have a vermin exclusion, which is a provision in your policy that states no amount will be paid for damages caused by pests. The reasoning behind the provision is that you need to have existing prevention measures in place for your property and inspecting and protecting against pests should be included in regular household upkeep. If you are uncertain about what your commercial property covers, look for exceptions in your existing policy.

6 tips for emergency preparedness

Is your business prepared in the case of an emergency this year? Whether you are updating your emergency procedures or starting from scratch, we have compiled a few helpful tips to get you started.

  • Protect your property with preventative measures: Equip your property with security systems, alarms, and smoke detectors. Consider what commercial insurance coverage could be added to your policy. It is better to be overinsured than risk a loss when you are missing essential coverage.
  • Know risks in the area: You are the expert in your area, and your familiarity with the area you serve in can help you to understand what weather you are susceptible to. Identify if your property could be negatively impacted by flooding, wildfires, tornadoes, hurricanes, or blizzards.
  • Create a crisis communication plan: Crisis communications are plans set in place in the case of an emergency that will dictate how you will keep your customers and team up-to-date on the situation. We recommend having text, call and social media options in your communications plan to cover each base.
  • Create a disaster recovery plan: This plan outlines what to do in the case of an emergency or property damage, including emergency contact information for each employee, and what location to go to in the case of an evacuation.
  • Train your team: Staying informed is the best way to ensure people make wise decisions. Take time to inform your team about safety procedures what to do if you cannot get in contact with the staff, and the location of first aid and emergency kits.
  • Update your plan annually: It is only when you test a plan that you can find the gaps, and annual updates or drills can help you to identify if your employee roster or inventory has changed since the original plan was created.

At Sadler Insurance, we are here to walk with you every step of the way to help you continue to provide for your customer base. Our brokers advocate on your behalf to get you the best insurance packages that are designed specifically for your needs. If you are looking to update your current policies to be emergency-ready or want to learn more about what we can do for you, contact us today to book a consultation.