INTACT INSURANCE
Weathering The Storm(s)
With Intact Insurance
A
flood occurs in a major city. A
large wildfire spreads into a
city and affects all businesses
and residents; the entire city
is evacuated. An ice storm
results in the loss of power.
As a result of changes in our climate,
these types of events are happening more
frequently. Statistics show that since the
1980s, insurance payouts from extreme
weather events have more than doubled
every five to ten years. Severe weather
events like these that used to occur once
every forty years are now happening every
five to six years.
In the past decade, Alberta has
experienced two of the costliest natural
disasters in Canadian history: the 2016
Fort McMurray wildfire cost close to $10
billion and the 2013 Alberta floods cost
close to $6 billion. In the last eighteen
months, floods in Central and Eastern
Canada have cost our economy more than
$3 billion.
ARE YOU READY?
Businesses that have been impacted by
inclement weather know firsthand the
impact these events can have on their
day-to-day operations. But recovering
from any incident, big or small, is rarely
as simple as repairing the damages. In a
marketplace of choice for customers and
employees, any interruption in operations
could impact more than just the bottom
line: staffing, reputation and customer
loyalty could all be at risk.
“As an insurance company, we believe in
helping customers anticipate and prepare
for these types of risks, and hopefully
mitigate the impact if something does
happen,” says Todd Klapak, Vice President
of Commercial Insurance (Western
Division) at Intact Insurance. “This
starts with the right insurance coverage
and contingency plans to better manage
emerging and often unexpected risks.”
Yet, only half of Intact’s commercial
customers in Western Canada have
business interruption coverage. Business
interruption coverage provides financial
support when normal daily operations
cannot continue because of damage to
property, equipment or stock. While
it won’t prevent a loss, it does provide,
among others, the following:
• Additional financial support to
resume operations as soon as possible
(including relocation, if necessary)
• Expense coverage to meet financial
obligations to customers, employees
and suppliers
• Financial support in case of mandatory
evacuation (by civic order)
“As Canadians face a higher probability
of encountering one of these incidents
in the future, starting the conversation
now can save considerable hardships
down the road,” adds Intact’s Luisa Currie,
Regional Vice President (Southern Alberta).
“Insurance brokers have a great wealth
of knowledge on how best to shape the
policy for the customer’s specific needs.”
PREVENTION AND PREPARATION
In recent years, insurers across the
country have introduced products to
help customers protect their homes and
businesses from water damage as well as
offer consultative support to mitigate the
impact of any incidents.
The Intact Centre on Climate Adaptation
at the University of Waterloo also works
with corporations to help businesses
identify and examine the risks of climate
change as well as establish means to limit
those risks.
“As the world around continues to
change,” Currie adds, “the type of risks
and exposures that businesses face
will also evolve. This type of proactive
research into what businesses can do,
along with a sound insurance policy,
can help us all navigate our changing
climate safely and productively.” +
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