How can I prepare my business for extreme weather?

Weather is becoming more extreme — and it's causing billions of dollars in damages every year in Canada. These costs are only going to increase as climate change causes more severe weather events, such as wildfires, floods, tornadoes, hurricanes, hailstorms, ice storms, and winter storms. Is your small business prepared? 

Insured catastrophic losses for Canada in 2025 totalled $2.4 billion, according to Catastrophe Indices and Quantification (CatIQ). But uninsured losses added another $1 billion to that, for a total of $3.4 billion. This is the 'new normal,' with 2025 seeing the highest number of fire-related catastrophes in 43 years of data collection by CatIQ. In 2024, much of the damage came from flooding, hail, and wildfire. 

"Extreme hazards cost Canadians billions of dollars in insured and uninsured damage each year," Paul Kovacs, executive director of the Institute for Catastrophic Loss Reduction (ICLR), said in a release. But he also said it doesn't need to be that way: "Small investments in proven protection can reduce or prevent most losses." 

As a Canadian small business owner, you can't exactly control the weather, but you can take action to weather any storm. 

Best practices for extreme weather preparedness 

Preparing for extreme weather events means first understanding what your risks are as a small business. For example, is your business located near a tinder-dry forest? Maybe you're in a hail zone, or a flooding zone, or in Tornado Alley. 

Small business owners in Alberta might be worried about wildfires and hailstorms, while businesses in downtown Toronto might be concerned about flash flooding and extreme wind events. By understanding your risks, you're better able to develop proactive solutions, mitigate risk, and build long-term resiliency. 

Wildfires 

Wildfires are a natural occurrence, but their frequency and intensity have increased in recent years. 2025 was actually the second-worst wildfire season in Canadian history, "with more than 6,000 wildfires in nearly every province and territory, impacting communities across the country and burning over 8.3 million hectares," according to Public Safety Canada. 

If your business is located in a wildfire-prone area (for example, in forested or grassland regions), one way to protect your property is by creating a safety zone following National Fire Protection Association (NFPA) standards. This can include ensuring you have at least a 10-metre separation between your building and any grassy or forested areas. You can also store combustibles in approved containers, away from buildings, and designate an outdoor smoking area with containers for safe disposal. 

It is also important to stay up-to-date on wildfire threats by checking weather alerts regularly. You can view fire maps via the Canadian Wildland Fire Information System from Natural Resources Canada, as well as federal, provincial and territorial reports via the Canadian Interagency Forest Fire Centre. 

Floods 

Canada is home to three oceans, four of the Great Lakes and more lakes than any other country, so it's no surprise that Canadian small business owners face several water-related hazards. In the summer of 2024 alone, flooding in Toronto and southern Ontario resulted in insured losses of $940 million, while flooding in parts of Quebec resulted in insured losses of $2.5 billion, according to the Insurance Bureau of Canada (IBC).  

Rising sea levels are expected to increase the incidence of coastal flooding, while more intense rainfall is expected to increase urban flood risks, according to Canada's Changing Climate Report (CCCR 2019). Since torrential downpours and flash flooding are, by their nature, fast and unexpected, it's a good idea for Canadian small business owners to create a flood plan to get ahead of flood risks. 

You can shore up your flood defences by installing backflow prevention check valves in the lower levels of your business to prevent sewer backup from utility and sewer lines. You can also install permanent sump pumps with backup power. If your business is located in a flood zone, you may want to consider consulting with a qualified contractor or engineer about floodproofing options. 

Windstorms, tornadoes, and hurricanes 

Extreme wind events, including tornadoes and hurricanes, can cause power outages, damage roofs and properties, and pose a threat to human life when loose items turn into dangerous projectiles. 

If your business is located in Tornado Alley, you'll want to be particularly vigilant during tornado season (between March and October). If your business is on the Atlantic Coast, you might be more concerned about getting hit with the tail end of a hurricane or tropical storm. But any region in Canada can face severe wind events, sometimes accompanied by other natural hazards such as hail. 

Once again, it pays to be prepared. Routine maintenance, such as removing tree branches near power lines, could help prevent a power outage (or damage to your roof) during an extreme wind event. You could also consider bracing and strapping the roof; adding fasteners, ties, and reinforcements; and installing doors that are pressure- and impact-rated. 

How small business insurance can help 

No matter how prepared you are for extreme weather, your business could still fall victim to Mother Nature. That's where small business insurance comes in, which — in addition to commercial general liability (CGL) coverage— typically includes commercial property and business interruption coverages, among others. 

Insurance is sometimes a low priority for Canadian small business owners. But consider how much a natural hazard could cost your business — and what would happen if you're uninsured. For example, if a wildfire burned down your building (including all of your inventory), how much would it cost to get your business back up and running? Could you continue to cover your expenses during the rebuilding process? 

If you already have small business insurance, it's worth taking the time (at least annually) to ensure you're adequately covered for risks specific to your business. Understand what your policy covers and if there are any gaps that need to be addressed. For example, surface flooding and sewer flooding are different perils and require different insurance coverages.  

By ensuring that you're adequately covered for risks related to natural hazards — along with extreme weather preparedness — you'll be in a much better position to weather any storm. To learn more, visit our small business insurance page today! 

This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information.