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Weather is something every Ontario business has to deal with, but severe weather can create challenges that go far beyond an inconvenient commute. Heavy rain, flooding, windstorms, freezing rain, snow, extreme temperatures, and other events can damage property and interrupt normal business operations.

The effects can also extend beyond your physical location. Employees may be unable to get to work, suppliers can experience delays, customers may stay home, and power or internet outages can make it difficult to operate.

Understanding how weather events can affect your business is an important part of managing risk. With proper planning, regular property maintenance, and appropriate commercial insurance, you can put your business in a better position to respond when severe weather occurs.

Common Weather Events That Affect Ontario Businesses

Ontario experiences a wide variety of weather conditions throughout the year. Depending on where your business is located, some weather risks may be more significant than others.

Weather events that can affect Ontario businesses include:

• Heavy rain and flooding
• Severe thunderstorms
• High winds and tornadoes
• Hail
• Freezing rain and ice storms
• Heavy snowfall and blizzards
• Extreme cold
• Extreme heat
• Wildfires and wildfire smoke

The potential impact also depends on the type of business you operate. A contractor with vehicles and equipment stored outdoors may face different risks than a retailer with significant inventory inside a building.

Location matters as well. Businesses near rivers, lakes, low-lying areas, forests, or other potential hazards may have additional exposures that should be considered when developing an emergency plan and reviewing insurance coverage.

Property Damage Can Be a Major Financial Risk

One of the most obvious ways weather can affect a business is through physical property damage. Severe weather can damage buildings, equipment, inventory, signs, vehicles, and other valuable business property.

A major storm can create several types of damage at the same time. Common examples include:

• High winds damaging roofs, siding, windows, and signs
• Heavy rainfall allowing water to enter a building
• Hail damaging roofing materials and vehicles
• Snow and ice placing additional stress on buildings
• Extreme cold contributing to frozen pipes
• Falling trees or branches damaging buildings and vehicles

Even relatively minor damage can become expensive when several parts of a property are affected. Repairs can also take time, especially when many businesses and homeowners in the same area are looking for contractors following a major storm.

Regular maintenance can help reduce some risks. Inspecting roofs, drains, gutters, windows, doors, and exterior walls can help identify problems before severe weather exposes them.

Weather Can Interrupt Business Operations

A business does not have to suffer major property damage to experience a significant financial loss from severe weather. Sometimes the biggest problem is simply being unable to operate normally.

For example, a storm may cause a lengthy power outage without damaging your building. Your property may be intact, but your computers, payment systems, refrigeration equipment, machinery, lighting, or communications systems might not work.

Weather-related disruptions can include:

• Power outages
• Internet and telecommunications failures
• Road closures
• Employees being unable to reach work
• Customers staying home
• Temporary business closures
• Restricted access to a building
• Equipment or technology becoming unavailable

The financial effect depends on the type of business and how long the disruption lasts. A restaurant, retailer, manufacturer, contractor, or professional office may each experience a weather-related closure differently.

Businesses should consider how long they could operate without electricity, internet access, their primary location, key employees, or essential equipment. Identifying these vulnerabilities ahead of time makes it easier to develop a plan for dealing with them.

Supply Chains and Deliveries Can Be Disrupted

Severe weather does not have to occur near your business to cause problems. Modern businesses often rely on suppliers, transportation companies, warehouses, manufacturers, and distributors located throughout Canada and around the world.

A major storm hundreds or even thousands of kilometres away could delay something your business needs. Transportation routes may close, flights can be cancelled, warehouses can shut down, and suppliers may have difficulty producing or shipping products.

Weather can potentially affect:

• Supplier operations
• Trucking and transportation routes
• Rail and air transportation
• Inventory availability
• Shipping and delivery times
• Raw material availability
• Deliveries to your customers

Businesses that rely on one major supplier may be especially vulnerable. The same can apply to businesses using just-in-time inventory systems where there is little extra stock available when deliveries are delayed.

Consider identifying alternative suppliers for essential products, materials, or services. You may never need to use them, but knowing your options can save valuable time during a disruption.

Employees and Customers Can Also Be Affected

People are another important part of weather-related business planning. Even if your workplace remains open, your employees and customers may have difficulty reaching it safely.

A major snowstorm or freezing rain event can make roads dangerous and disrupt public transportation. Flooding or fallen trees can also close roads and prevent access to certain areas.

Businesses should consider how they will handle situations involving:

• Unsafe driving conditions
• Public transit disruptions
• Workplace closures
• Remote-work arrangements
• Employee communication
• Customer cancellations
• Reduced customer traffic
• Emergency procedures

Clear communication is particularly important. Employees should know how they will be informed if the workplace opens late, closes early, or remains closed for the day.

Customers may also need updates. Your website, email list, social media accounts, telephone system, and other communication channels can help you quickly announce closures or changes in operating hours.

The Importance of a Business Continuity Plan

A business continuity plan outlines how your company will respond to an event that disrupts normal operations. Severe weather is only one reason to have such a plan, but it is a risk almost every Ontario business faces.

Your plan does not need to be unnecessarily complicated. It should focus on the people, equipment, information, suppliers, and services your business needs to continue operating or resume operations quickly.

A basic business continuity plan might include:

• Emergency contact information
• Employee responsibilities
• Alternative work locations
• Remote-work procedures
• Data backup procedures
• Customer communication plans
• Alternative suppliers
• Emergency contractors and vendors
• Procedures for protecting equipment and inventory
• Steps for reopening following a closure

Once the plan has been developed, make sure the appropriate employees know about it. A plan stored on a computer that cannot be accessed during a power or internet outage may not be particularly useful.

Review your plan periodically as your business changes. New locations, employees, suppliers, equipment, and technology can all create new considerations.

How Commercial Insurance Can Help

Commercial insurance can play an important role in helping a business recover from certain types of weather-related losses. However, coverage depends on the policy, the cause of the damage, and the insurance purchased.

Commercial property insurance, for example, may provide coverage for insured damage to buildings, equipment, inventory, and other business property. The exact protection will depend on the terms and conditions of your policy.

Other insurance coverages that may be relevant include:

• Commercial property insurance
• Business interruption insurance
• Equipment breakdown insurance
• Commercial auto insurance
• Coverage for mobile equipment or property away from your premises
• Sewer backup and other available water-related coverages

Business interruption insurance can be particularly important when insured property damage forces a business to temporarily close or reduce operations. Depending on the policy, coverage may help with certain lost income and continuing expenses during the interruption period.

It is important to remember that not every weather-related event or financial loss is automatically covered. Policies contain limits, deductibles, exclusions, conditions, and specific definitions of what is insured.

Speak with your insurance broker if you are unsure how your policy responds to particular weather events.

Review Your Insurance Before Severe Weather Happens

The best time to discover a gap in your insurance coverage is not after a major storm. Reviewing your commercial insurance regularly can help ensure that your policy reflects your current operations and property values.

Businesses change over time. You may purchase equipment, renovate your property, increase inventory, add vehicles, expand operations, or move into a larger location.

An insurance review should consider areas such as:

• Building replacement costs
• Equipment values
• Inventory levels
• Business interruption limits
• Commercial vehicle schedules
• Newly purchased equipment
• Renovations and property improvements
• Policy deductibles
• Water damage and sewer backup coverage
• Policy exclusions and limitations

Pay particular attention to property values. Construction, equipment, and replacement costs can change significantly over time, leaving older insurance limits inadequate.

Your broker can help you review the coverage you currently have and identify areas that may need further consideration.

Practical Ways Businesses Can Prepare for Severe Weather

Insurance is an important part of managing weather-related risk, but it should not be your only strategy. Taking practical steps before a storm can sometimes reduce the severity of damage or help your business recover faster.

Start by looking at the risks around your property and considering what could happen during different types of weather.

Practical steps may include:

• Inspect roofs, gutters, drains, windows, and exterior walls.
• Trim trees and remove potentially dangerous branches where appropriate.
• Secure outdoor equipment, furniture, signs, and other loose objects.
• Protect important records and maintain secure backups.
• Develop procedures for power and internet outages.
• Keep emergency contact information readily accessible.
• Establish a reliable way to contact employees.
• Identify alternative suppliers and service providers.
• Review your insurance coverage regularly.
• Maintain records of business equipment and other property.

Photographs, videos, receipts, equipment lists, and other records can also be helpful when documenting what your business owns. Store copies securely so you can still access them if your business premises are damaged.

Weather forecasts can sometimes provide advance warning, but businesses may have only a limited amount of time to prepare. Having procedures in place ahead of time allows you to focus on immediate priorities when severe weather approaches.

Preparing Your Business for Ontario’s Changing Weather

Severe weather is an unavoidable part of operating a business in Ontario. While you cannot control the weather, you can control how prepared your business is when a major event occurs.

Start by identifying the weather risks that could have the greatest effect on your property, employees, suppliers, customers, and operations. Regular maintenance, a business continuity plan, reliable backups, and clear communication procedures can all help reduce disruption.

Commercial insurance should also be part of your preparation. Review your policy with your insurance broker to make sure you understand your coverage, limits, deductibles, and exclusions.

A little preparation before severe weather arrives can make a significant difference afterward. The goal is not only to protect your property, but also to help your business recover and return to normal operations as quickly as possible.