How to Protect Your B.C. Business from Floods

August 26, 2024

Floods are the costliest natural disaster in Canada and the damage can be devastating to your B.C. business. Next to the spring thaw, heavy rainfall from storms is the most common cause of flooding.

Protecting your commercial property from floods can help prevent disruption to your business.

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Here are 5 tips to help protect your B.C. business against flooding:

1. Update your commercial property insurance policy

Make sure your commercial insurance policy for your British Columbia business is up to date and meets its current needs. Make sure you understand what it covers.

Flood coverage is included with most small business insurance package policies, but you should always double check that the coverage is provided.

In instances where the business is located in a “flood zone” insurers may decline to provide the coverage.

Flood insurance typically would include coverage for:

• Buildings and structures
• Inventory
• Furniture, supplies, and equipment
• Records of accounts receivable
• Documents and books
• Machinery
• Property in transit
• Cargo
• Lost revenue
• Ordinary payroll
• Expenses as a result of loss
• Mobile property
• Outdoor property
• Electronics

2. You can include these insurance add-on protections in your business policy:

Overland flood coverage provides protection for loss or damage related to water entering a property from a sudden accumulation of water. This usually results from heavy rain, spring run-off, or overflow from lakes or rivers. If you don’t have this add-on, you may not be covered.

Sewer backup coverage: This add-on coverage helps protect your B.C. small business against water damage from sewer backups.

This type of add-on insurance typically covers:

• Backup from a sewer, storm drain, or septic tank
• Incidental damage caused by sewer backups, which includes coverage for the cost of professional cleaning or replacing walls, flooring, furniture, and other belongings
• Overflow from a sump pump or other similar equipment.

3. Add business interruption insurance to your coverage: This type of insurance supports you when your B.C. business can’t operate due to a covered loss, such as a flood, fire, vandalism, or a disruption in your supply chain.

Business interruption insurance can help with these expenses:

• Payroll
• Rent
• Utilities
• Property taxes
• Alarm monitoring
• Relocation of your business

4. Have an emergency plan

Get flood ready. Create an emergency plan for your B.C. business with instructions for safe evacuation during a flood. Have an annual drill so all tenants and staff know what to do in an emergency.

5. Invest in equipment and preparation

Install water sensors in elevators

Water sensors in elevators can save lives because they prevent elevators from going to flooded floors.

Have a backup generator

Install a backup generator that will power heat and sump pumps, the boiler, smoke evacuation fans, stairwell pressurization systems, fire alarm and sprinkler systems, emergency lighting, and at least one elevator.

Invest in emergency supplies

Store flood-fighting equipment onsite and above a likely flood level. Have sandbags, portable generators, sump pumps, portable lights, fuel, dehumidifiers, protective clothing, and extension cords.

Keep emergency contact information up to date

Maintain updated contact information for tenants, insurance adjusters and brokers, and risk management consultants so you can act quickly and inform stakeholders in an emergency.

Have backups of insurance-related documents

Back up paperwork, such as lease agreements, financial statements, and inventory counts, that you will need to access. Ask your insurer what other types of documents you need backups of if you need to make a claim. Store copies offsite in a location that is not likely to be flooded at the same time as your property and have digital backups.

Staying informed during floods. Each province and territory responds to floods in co-operation with local authorities