Where To Buy Flood Insurance In Canada

Do you know? You can buy flood insurance for a business in Canada

Floods are serious matters. With little or no advance notice, they have the potential to bring your business operations to a complete standstill. A single flood can also quickly disrupt the complex supply chain that keeps your commercial business afloat. Just one devastating flood can interrupt products from making it to shelves, the ability of employees to safely travel to work as well as shut down revenues for days, weeks or even months.

Unsanitary and contaminated water from a single flood can wreak havoc across huge areas – more than just temporarily shuttering a single bricks and mortar store, it can impact a street, a commercial district, or even an entire town. In Canada and around the world, the increased frequency and complex dangers associated with flooding are raising concerns with governments, businesses and individuals alike.

In fact, a major transportation corridor in the Atlantic provinces faces a looming flood threat that could literally rewrite the map. Looking at sea levels surrounding the Bay of Fundy marshlands, geography experts are worried. 

A CBC News article finds that, “this is a potential ground zero of a Canadian climate change disaster, where sea-level communities face rising oceans and await word on a detailed plan and the funding to keep the narrow land link between Nova Scotia and New Brunswick open. The risk isn’t decades away. Rather, the event could occur at any time through a combination of stormy weather conditions, according to emergency officials and coastal geographers watching the area.”1

Weather related risks are top of mind wherever you do business in Canada. It is estimated by experts that climate risks now impact 4 out of 5 or approximately 80 per cent of all economic sectors. Damaging storms, droughts, heat waves, earthquakes, excess rainfall and flooding are all having a toll on the Canadian economy. This is why knowing where you can buy flood insurance in Canada has never been more important to business owners.

Floods happen. It’s how we all prepare that can make a difference.

With water levels on the rise, being prepared for a flooding event is increasingly important for all Canadians. Out of all extreme weather events, the damage caused by floods is a particular threat in this country. 

In fact, “according to Public Safety Canada, floods are the most common natural hazard in the country and among the costliest. Historic floods have occurred across Canada, with many of the worst happening on major river systems that pass through populated areas. Scientists predict that flooding linked to the impacts of climate change will increase as the 21st century progresses, particularly in coastal areas of the country.”2   

Preparing for flooding events in the future is why, “from how concrete is mixed for road construction to roofing standards enabling buildings to withstand stronger storms and plans to help homeowners manage increased flooding, Canada’s building rules are being rewritten because of climate change.”

With flood related events and claims on the rise across the country, it’s not a matter of if your business property will be damaged by a flood, rather is a matter of when flooding will impact your property. 

Now available in Canada | Businesses can buy insurance for flooding related risks

Knowing that your business will be covered in the event of an extreme weather-related event such as a flood has never been more important. And this is why AXA Global Parametrics, an insurance and reinsurance broking company incorporated in France, is now making parametric insurance available to Canadian businesses.

Essentially, parametric insurance is weather risk insurance. More specifically, it is insurance coverage that’s designed to address claims related to extreme weather risk damage such as flooding. Any business can be impacted by flooding. Some examples of how flooding can potentially impact Canadian industries are provided by AXA Global Parametrics:

  • “Agriculture – coverage against low yield due to drought, excess rainfall or cyclones
  • Food and Drink – coverage against decreased sales of cold drinks during a cool, rainy summer
  • Construction – coverage against work delay costs due to extreme cold temperatures
  • Retail – coverage against drop in seasonal clothing sales (winter coats, bathing suits…) due to adverse weather
  • Renewable Energy – coverage against a decrease in renewable energy production due to adverse weather (lack of wind or solar radiation)
  • Gas and Energy – coverage against a decrease in energy demand due to a warm winter 
  • Tourism and Leisure – coverage against a drop-in visitor numbers and subsequent lower food and beverage sales in theme parks due to extreme weather conditions (excess rainfall, cyclones…)
  • Transportation – coverage against increased costs for airline companies due to cold temperatures and snow (aircraft de-icing)”4

How will extreme weather risk coverage respond to a flooding event?

From the ground up, parametric insurance responds to the ebb and flow of extreme weather events. AXA Global Parametrics uses research into existing and ongoing extreme weather risks to establish what are known as ‘probability parameters’ for parametric coverage. 

Coverage Insight: A change in temperature or rainfall amount that is either above or below a certain parameter generally adds up to what’s considered an ‘extreme weather risk’ situation.

This means that established and known parameters help benchmark the general norms for geographic areas across Canada. Earthquake magnitude, windspeed, temperature as well as rainfall are among the parameters that are taken into consideration. 

Parametrics insurance takes into account many of the extreme weather risk exposures that gone from ‘once-in-a-lifetime-events’ to become increasingly frequent and commonplace. Designed to deliver when you need it most, here is how this innovative new form of flood insurance works:

  1. When climate events are outside of certain levels, parametric insurance is specifically designed to expedite claims payments quickly and transparently. 
  2. When a parameter is below or above a set, level, you will receive a claims payment within a few days for a pre-defined amount and threshold.  

Extreme weather risks such as flooding are damaging businesses across Canada. Thankfully, it is now possible for commercial business to get flood insurance for extreme weather risks. 

Flood insurance? We can get your business ALIGNED across Canada.

It doesn’t matter where your commercial business is located in Canada. We deliver a different and better insurance experience for all of the businesses we support. 

Our team knows that the most important thing we do is actively support Canadian businesses with the best commercial insurance products and services. If you are ready to work with a dedicated business insurance brokerage, now is the time to get ALIGNED Insurance. 

Want to talk right now about your flooding and commercial insurance needs in Canada? Call an ALIGNED insurance broker toll-free at 1-866-287-0448 or contact us via email quotes@alignedinsurance.com

Source(s):Insurance Business Canada: “Lessons learned from the latest Canada flooding”1CBC.ca “Nova Scotia is one ‘perfect storm’ away from being cut off from Canada2The Canadian Encyclopedia: Floods in Canada;3CBC.ca: “Canada’s building code is getting a climate change rewrite”AXA Global Parametrics: Parametric Insurance – Innovation strengthening climate resilience

Read more about flood insurance and related commercial business coverages

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