\n
<\/p>\n\nOntario Commercial Insurance<\/p>\n
\n
It\u2019s 7:15am on a Monday in September.<\/p>\n
A major storm moved through your area overnight. You arrive at your business and find water across part of the floor, a ceiling tile has collapsed, a company vehicle is covered in hail dents. You go around back and your loading area is inaccessible, and your equipment can\u2019t be used.<\/p>\n<\/p><\/div>\n
\n
The obvious question<\/p>\n
“Is this covered?”<\/strong><\/p>\nThe less obvious question<\/p>\n
\u201cDid I update my insurance last year to include overland water and did I add that new piece of equipment I bought last month to my plan?\u201d<\/strong><\/p>\n<\/p><\/div>\nFrom an insurance perspective, you may not be dealing with one loss. You could be dealing with several different types of damage, each connected to a different part of your commercial insurance policy.<\/p>\n
Where did the water come from, what was damaged, were your vehicles involved, can you still operate, what repairs or maintenance issues existed before the storm?<\/p>\n
These are the details that matter.<\/strong><\/p>\n<\/section>\n <\/p>\n\nStart With the Water<\/h2>\n\n
After a major Ontario rainstorm, one of the first things to establish is where the water came from.<\/p>\n
Two businesses on the same street could both have water covering their floors and still face very different insurance situations.<\/p>\n<\/p><\/div>\n
\n
\n
Surface Water<\/p>\n
If Water Came Across the Ground<\/h3>\n
Heavy rain overwhelms the surrounding area. Water builds up across the parking lot, reaches the building, and enters through a loading door, doorway, window, or another opening.<\/p>\n
This is the type of situation commonly associated with overland water coverage<\/strong>.<\/p>\nOverland water generally refers to surface water entering a property, including water caused by heavy rainfall, runoff, or the overflow of a freshwater source.<\/p>\n
Business owners should not assume this coverage is automatically included in every commercial property policy. Availability, limits, deductibles, exclusions, and definitions can vary.<\/p>\n<\/p><\/div>\n
\n
Drain or Sewer<\/p>\n
If Water Came Up Through a Drain<\/h3>\n
Now picture the same storm, but the water enters from below.<\/p>\n
Instead of flowing through the front door, water or sewage backs up through a floor drain, sewer connection, sump system, or septic system.<\/p>\n
That may fall under sewer backup coverage<\/strong>.<\/p>\nSewer backup and overland water are not necessarily the same coverage. That distinction becomes especially important during severe storms, when more than one source of water can contribute to the damage.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n
\n
\u201cWhen a business owner tells us they had flood damage, one of our first questions is usually, \u2018Where did the water actually come from?\u2019 Water coming across a parking lot and through a door can be treated differently than water backing up through a drain. Once the water is inside, the damage can look almost identical. The coverage behind it may not be.\u201d<\/p>\n
Austin Gooder<\/strong>
Commercial Insurance Producer at Duliban Insurance Brokers<\/p>\n<\/p><\/div>\nQuestions Worth Asking Before You Need the Coverage<\/h3>\n\n
Instead of asking your broker, “Am I covered for flooding?”<\/strong> get more specific.<\/p>\nAsk whether you have overland water coverage and<\/strong> sewer backup coverage. Find out whether they have separate limits or deductibles. Ask whether your location affects eligibility and what happens if two sources of water contribute to the same claim.<\/p>\nThose are the questions that can make a real difference after a storm.<\/strong><\/p>\n<\/p><\/div>\n<\/section>\n <\/p>\n\nThen Look at the Rest of the Property<\/h2>\n
Water gets most of the attention after severe weather, but wind and hail can create just as many problems for a business.<\/p>\n
The damage is not always dramatic at first glance.<\/p>\n
A storm can affect:<\/p>\n
\n
Roofing<\/p>\n
Exterior cladding<\/p>\n
Signs<\/p>\n
Rooftop HVAC<\/p>\n
Outdoor equipment<\/p>\n
Skylights<\/p>\n
Windows and doors<\/p>\n
Inventory<\/p>\n
Interior equipment<\/p>\n<\/p><\/div>\n
Commercial property insurance may provide coverage for sudden physical damage caused by insured events such as wind or hail, subject to the wording of the policy.<\/p>\n
There is another question that comes up often, though.<\/p>\n
\n Was the damage caused by the storm, or did the storm expose a problem that was already there?\n <\/p>\n<\/section>\n
<\/p>\n\nInsurance and Maintenance Are Not the Same Thing<\/h2>\n
Take two commercial roofs.<\/p>\n
\n
\n
1<\/p>\n
The first has been inspected and maintained, but a major windstorm tears away part of the roofing system.<\/p>\n<\/p><\/div>\n
\n
2<\/p>\n
The second has had leaks for years, damaged flashing, and overdue repairs. Heavy rain arrives, water gets inside, and the owner discovers the problem has become much worse.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n
Both owners may describe the situation as storm damage. Their claims may not be treated the same way.<\/p>\n
Commercial insurance is generally designed to protect against sudden and accidental insured losses. It is not intended to replace routine property maintenance, repair gradual deterioration, or cover normal wear and tear.<\/p>\n
That is why maintenance deserves a place on any severe weather checklist.<\/p>\n
For an Ontario business, regular checks may include:<\/p>\n
Roof condition<\/span>
\n Gutters and drainage<\/span>
\n Floor drains<\/span>
\n Sump pumps<\/span>
\n Backwater valves<\/span>
\n Doors and windows<\/span>
\n Exterior signs<\/span>
\n Trees near the property<\/span>
\n HVAC equipment<\/span>
\n Outdoor storage<\/span>
\n Parking lot drainage<\/span><\/p>\nGood maintenance is not about preparing for an insurance claim. Ideally, it helps prevent the claim altogether.<\/strong><\/p>\n<\/section>\n <\/p>\n\nWhat About Company Vehicles?<\/h2>\n
Now step outside.<\/p>\n
Your building made it through the storm, but your vehicles did not.<\/p>\n
One service van has a cracked windshield. Another is covered in hail dents. A third was parked in a low part of the lot and took on water.<\/p>\n
That damage usually falls under your commercial auto insurance rather than your commercial property policy.<\/p>\n
\n
Comprehensive Commercial Auto Coverage<\/h3>\n
In Ontario, comprehensive coverage is generally an optional physical damage coverage for commercial vehicles.<\/p>\n
Depending on the policy, it can protect against certain types of non-collision damage, including:<\/p>\n
\n- Hail<\/li>\n
- Wind<\/li>\n
- Flood or water damage<\/li>\n
- Fire<\/li>\n
- Theft<\/li>\n
- Vandalism<\/li>\n
- Falling objects<\/li>\n<\/ul><\/div>\n
The key point is that comprehensive coverage has to be purchased.<\/strong><\/p>\nHaving a commercial auto policy does not automatically mean every kind of damage to the vehicle is covered.<\/p>\n
Businesses with multiple vehicles should know which vehicles carry comprehensive coverage, what deductibles apply, and whether a loss involving several vehicles at once could affect operations.<\/p>\n
\n What happens if your vehicles are insured, but they are out of service for several weeks?\n <\/p>\n<\/section>\n
<\/p>\n\nThe Damage Is Covered, but the Business Still Cannot Open<\/h2>\n
Replacing damaged property is only one part of recovering from a major loss.<\/p>\n
Imagine your building repairs are covered, but the work takes six weeks.<\/p>\n
During that time, customers cannot enter the location. Production stops. Rent keeps coming out. Payroll continues. Jobs are delayed. You may need temporary space or rental equipment just to keep part of the operation moving.<\/p>\n
Repairing the building does not automatically replace the income lost while you are closed.<\/strong><\/p>\nThat is where business interruption insurance<\/strong>, sometimes called business income insurance, can become important.<\/p>\nWhat Does Business Interruption Insurance Do?<\/h3>\n
Business interruption coverage can help protect against certain lost income and ongoing or additional expenses when business operations are interrupted because of an insured loss.<\/p>\n
The cause of the interruption matters.<\/p>\n
A business being closed does not automatically mean business interruption coverage applies. The underlying cause of the loss, the policy wording, the length of the interruption, and the coverage purchased all play a role.<\/p>\n
Some policies may also include coverage for certain extra expenses that help a business continue operating or temporarily relocate after an insured event.<\/p>\n
The better question is not simply, “Do I have business interruption insurance?”<\/p>\n
\n
If my business could not operate for 30, 60, or 90 days after a covered loss, would my current insurance reflect what the business actually needs?<\/p>\n<\/p><\/div>\n<\/section>\n
<\/p>\n\nThe 15-Minute Post-Storm Commercial Insurance Checklist<\/h2>\n
After severe weather, you do not need to become an insurance expert before calling your broker.<\/p>\n
You do need good information.<\/strong><\/p>\n\n
\n
\n
Start With Safety<\/h3>\n
Do not enter unsafe areas, touch electrical equipment exposed to water, climb onto damaged structures, or put employees at risk to inspect the property.<\/p>\n
Call emergency services when necessary.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n
\n
\n
Photograph the Damage<\/h3>\n
Where it is safe to do so, document what happened before cleanup begins.<\/p>\n
Photograph:<\/p>\n