Insurance experts in B.C. are urging businesses to prepare their employees, properties, and policies for wildfires ahead of what’s expected to be an especially hot and dry season.
The cost of wildfire damage has reportedly skyrocketed in B.C. in recent years, amounting to $1.09 billion in 2023 — a record year.
Westland Insurance says planning for evacuations, preparing employees, drafting a continuity plan, and protecting physical assets can reduce operational risks ahead of the wildfire season, and help ensure claims are approved.
Vice President Sarah Cameron says the risks are not exclusive to northern or Interior B.C.
“We are seeing that the whole province is being affected by wildfire,” Cameron told 1130 NewsRadio.
“It’s not necessarily the fires anymore, but it’s the smoke causing supply chain issues that impact the Lower Mainland as well. The risk of an actual fire here is probably pretty low, but you will be impacted by ones that will affect other parts of the provinces.”
She says smoke can prevent employees from getting to work wherever it flows.
“The smoke a couple of years ago was awful, a lot of businesses closed for days because their people couldn’t work, the HVAC systems were pumping through wildfire smoke.”
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Cameron adds that this serves as an example of how wildfire preparedness is equally important for businesses in Metro Vancouver as for companies in Kelowna.
“One of the biggest losses I saw was a casino, because the HVAC was whirling for a month, and it just smoked the whole place.
She explains that a continuity plan can help businesses to avoid such situations.
“It doesn’t need to be a big document, but you need to write down the who, what, when, and where of communication for any sort of emergency,” Cameron said.
“What is your continuity plan for if you’ve got a supply chain issue. Can anybody work remotely? Can you keep your business going if you work remotely? Having it all together so that your employees know your plan. It doesn’t need to be complicated.”
She recalls the Jasper wildfire of 2024, which displaced many residents, who then went to southern Alberta or B.C. to find temporary living spaces.
“During a wildfire or any catastrophe, stress is extremely high. So, if you can take out the pressure of decision-making in that moment, you can deal with it all much more smoothly as long as you figure out who can talk to the insurance company, who can talk to the suppliers.”
She says it’s paramount that employees know who can make decisions.
“Sometimes the owner is not available, and you have to be able to figure out who is the second in command. How are you communicating to your clients that you are experiencing supply chain disruption, staffing challenges, and power outages? Rerouting calls or your mail — whatever that looks like.”
Cameron warns that business interruptions and the time it takes to recover should not be underestimated and should be included in insurance policy coverage.
She says that the goal of being prepared is not about eliminating risks, but rather reducing uncertainty and improving the ability to respond quickly during high-stress situations.
In an emergency evacuation, Cameron suggests businesses leave with important paperwork in hand, disable HVAC systems, and close their windows and doors to mitigate smoke damage.
“But do not lock them because the fire department has to be able to get in,” she added.
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Cameron admits that business owners in certain areas of B.C. pay higher premiums due to the probability of wildfires, especially companies insuring heavy machinery.
However, she says policies are currently comparably low.
“All the premiums have gone down this year and last year. We are now on this downswing because we haven’t had a catastrophe. Once we do, then the premiums will go right back up again,” she explained.
Cameron urges business owners to act sooner rather than later.
“If you are within 25 or 50 kilometres of an active fire, you can’t touch your policy.”
As of Tuesday morning, there are 29 active wildfires in B.C., including three burning out of control near the Lower Mainland.