Extreme weather events are increasingly becoming the norm, prompting businesses to rethink their insurance policies. Kiran Kaur (pictured), an insurance broker with Billyard Insurance Group, believes the importance of adapting to these shifting realities, particularly when it comes to natural disasters like floods and wildfires, can’t be understated.
“Every business is unique, influenced by its geographical location,” Kaur explained. “If a specific endorsement is required, we ensure it is included in the policy based on what the business requires.”
One key area Kaur advises her clients to focus on is business interruption insurance, which has become critical as extreme weather events can disrupt operations for extended periods.
“The most important one is business interruption insurance,” she said, adding that this coverage can be the difference between a business surviving or closing after a natural disaster. Kaur pointed to recent flooding in Mississauga as an example.
“Recently, Ontario faced significant flooding, especially in Mississauga, where many basements were severely affected,” she recalled. After the flooding, many clients reached out, only to find they were underinsured, particularly when it came to content coverage.
In many cases, businesses might not realize that their policies lack the comprehensive protection needed for emergencies like flooding.
“Clients may not fully understand their coverage, but as a broker, you do,” she said. It’s the broker’s responsibility to ensure clients are fully informed about their coverage and that all necessary endorsements are included. This includes adding comprehensive water damage endorsement which protects you against cost of emergency restoration services as well.
“Emergency restoration services can incur thousands of dollars,” Kaur stated, pointing out that clients without adequate coverage often face significant financial burdens after a disaster.
In addition to ensuring proper coverage, Kaur encourages her clients to implement
sustainable practices to mitigate future risks. For instance, she advises businesses to invest in solar panels, wind energy, and other eco-friendly solutions that not only reduce their carbon footprint but also enhance their sustainability in the long term.
“Clients should be educated on the advantages of investing in solar panels or wind energy system to minimize their carbon footprints,” she stated. These investments not only help combat climate change but can also lower energy costs.
Kaur also stresses the importance of incorporating energy-efficient systems into business operations.
“Businesses ought to opt for energy-efficient lighting and heating solutions, which can decrease consumption and lower costs,” she advised. By making these changes, businesses can take proactive steps to both reduce their environmental impact and save money on operational expenses.
However, despite all these preventive measures, Kaur reiterated that the most important step businesses can take is ensuring they have the right insurance coverage in place. She
emphasized that it’s not just about having a policy but about understanding the specifics of what is covered - and what is not. As a broker, Kaur takes it upon herself to educate her clients and ensure they are protected against potential liabilities, such as third-party claims arising from floods or fires.
As extreme weather events continue to increase in frequency and intensity, businesses must be proactive in reassessing their insurance policies and making necessary adjustments. Kaur’s message is clear: the cost of being underinsured far outweighs the expense of having comprehensive coverage tailored to a business’s unique risks.
“It’s important to read the policy wording,” she insisted, noting that a thorough understanding of coverage can prevent costly mistakes down the line.
