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WILDFIRE DAMAGE
After the smoke clears
How wildfires create risks for businesses in surprising ways
BY SAAD MERED, CEO, Chief Agent, Zurich Canada
More than three years after the wildfire in Fort McMurray, Alta., I am reminded of not only the de-
structive force of such natural disasters, but also their unpredictability.
Wildfires can happen almost any- where and at almost any time. They can last for weeks, or even months. They can affect property, equipment and people directly. Also, they can have an indirect impact on the labour market, transpor- tation and infrastructure.
The wildfire began southwest of Fort McMurray on May 1, 2016. It swiftly
became the most expensive disaster in Canadian history. After raging for more than three months, the wildfire spread across 1.5 million acres of land and de- stroyed 2,400 homes and buildings.
Where there’s smoke
Most of those damaged structures were private residences, but the fire also took its toll on businesses, often in sur- prising ways.
It is no secret that wildfires pose a sig- nificant fire risk to buildings. However, many business owners had to contend
with additional risks that challenged their ability to conduct commerce.
One such risk is what we’ll call “civil authority.” This is when local authori- ties issue evacuation orders, close road- ways or turn off utilities like overhead electrical lines, which can effectively shut down a business. Such measures are critical to ensuring the safety of peo- ple in the affected areas, but they can also keep employees, customers and vendors away from businesses.
Smoke and soot damage also caused unexpected losses to businesses in and
canadianunderwriter.ca | September 2019 47