Last year proved to be a test of resilience for many Canadian communities. From the catastrophic floods in Toronto and Quebec to wildfires tearing through Jasper, businesses and homeowners found themselves grappling with not only the physical destruction but the labyrinthine process of rebuilding and making claims.
The industry was pushed to its limits, exposing gaps in coverage, delays in response, and a lack of preparedness among many policyholders. Joe Turcotte (pictured), EVP of Insurance Services at First Onsite, a property restoration firm, reflected on lessons learned during Canada’s costliest year on record for natural catastrophes.
“It was a busy year. Residential, probably, was a record year for us with the floods in Toronto and Quebec. But there were also some major losses,” said Turcotte, who previously served as claims manager at FM.
The Jasper Park Lodge alone, he said, required an astonishing 1,200 people to be mobilized for restoration. The hailstorms across the prairie provinces were another challenge, especially assessing damage on gravel roofs.
“Water seeps through, travels, and comes down unpredictably, making leaks hard to trace,” said Turcotte. “We've helped customers out west significantly, and Jasper Park Lodge is nearing completion in record time."
Canada’s insurance industry mounted a remarkable response to the series of catastrophes that struck last year. Turcotte noted the high level of coordination and prioritization that took place in the wake of extreme weather events.
"The biggest challenge during catastrophes is resources - our phones are flooded, and people need immediate help,” he said.
One challenge that emerged was the lack of disaster planning. Many Canadian businesses and homeowners still don’t have even the most basic contingency plans in place, according to Turcotte.
Floods, for example, are devastating but not entirely unpredictable. Yet, time and again, businesses are caught off guard. “Too often, we see companies unprepared - no contingency plans, shutdown procedures, or emergency protocols. Simple measures like sealing doorways, using temporary barriers, and elevating stock can prevent major losses,” said Turcotte.
“Wildfires pose similar risks. While you can’t change a roof from combustible to non-combustible, you can clear debris, maintain landscaping, and seal vents to limit smoke damage. The key is preparation - without it, our ability to help is limited.
“Businesses should ask themselves: ‘Who will I call in a crisis? Do I have a relationship that ensures I’m on the list when it matters?’”
Rebuilding after a catastrophe isn’t just about putting up new walls; it’s about making smarter choices to ensure future resilience.
With another wildfire season looming, disaster preparation should be at the forefront of every homeowner and business owner’s mind, Turcotte stressed.
"If your facility is in a wildfire-prone area, use third-party resources to assess your risk and minimize combustible materials around your property,” he said. “Keep gutters and roofs clear of debris, clean vents, and have a way to seal them. An emergency response plan is crucial - know where to shut off power and gas, and identify any external fire hazards.
“Beyond immediate risks, think about business continuity. Where will you relocate employees? Can you outsource production? If your supply chain relies on wood or steel, what happens if your main supplier is affected? Without an alternative, you could be out of business."
On the insurance side, changes are already happening. For years, insurers underestimated flood risk, lumping coverage into general policies without much scrutiny. Turcotte believes that era is over.
"For a long time, insurers didn’t properly assess flood risk—they just bundled it in. But with rising flood frequency and severity, that’s changed,” he told Insurance Business. “Now, if you're in a 100- or 200-year flood zone, expect higher deductibles and capped aggregate limits, similar to earthquake or hurricane coverage.”
For brokers and their insureds, this shift means one thing: scrutinizing insurance coverage has never been more critical. Those who take action now, before the next catastrophe hits, will be setting themselves up for a stronger, more resilient future.
What do you think are the biggest lessons from last year’s natural catastrophes? Please share your thoughts below.
