Protect your commercial building from water damage
Whether a small leak or a major flood, water usually causes more damage than you might think. In a commercial building, damage can spread quickly, interrupt operations and lead to significant costs. And yet, the vast majority of water damage can be avoided through simple preventive measures. Here’s what you need to know to protect your buildings.
Frequent and costly claims
Water damage is among the most common types of claims in commercial buildings. It accounts for no less than 48% of insurance claims, according to the Canadian Institute of Actuaries.
The causes? Where to begin! As a result of climate change, episodes of heavy rain, ice storms and flooding are becoming much more frequent, causing more sewer backups.
But often, it’s ordinary issues that result in major damage: neglected leaks, aging water heaters, worn seals, a worn roof. Small oversights that can become very expensive.
Underestimated consequences
Even minor water damage can have serious consequences. The more freely water circulates, the more damage accumulates—and the higher the bill climbs.
Possible repercussions include:
- Interruption of business operations
- Damaged electronic equipment
- Damaged merchandise or documents
- Costly cleanup and restoration
- Temporary relocation
- Structural damage
- Tensions between occupants
Even if your commercial building is insured, the costs resulting from water damage can still be very high.
A useful tool: a risk management plan
To prevent water damage, or respond to it more effectively, implement a risk management plan tailored to your building. Here’s how.
1. Identify the risks
Have the building inspected by a specialized company. A thorough evaluation of the roof, plumbing, windows, ground slope, and gutters will reveal weak points before problems arise.
2. Address the weaknesses
Every improvement makes your building more resistant to damage. For example, installing a backwater valve protects your property against sewer backups. Leak detection systems can automatically shut off the main valve and send an alert as soon as a problem appears.
3. Plan seasonal prevention and maintenance measures
Spring: Clear snow and ice from roof edges to prevent water infiltration caused by the thaw.
Fall: Clean the gutters after the leaves drop.
Summer: Make sure windows are tightly closed before storms.
4. Prepare and communicate a procedure
Establish a clear procedure to follow in case of water damage, and make sure all concerned parties are familiar with it. Everyone should know exactly what to do without delay.
What to do in the event of water damage
- Shut off the main water supply
- Photograph the damage to support your insurance claim
- Move valuables to a safe place
- Turn off exposed electrical devices
- Remove as much water as quickly as possible, e.g., using a wet vacuum
- Blot and wipe surfaces dry
- Dry fabrics and carpets (don’t throw anything away)
- Use a fan or dehumidifier, if possible
- Contact your insurer
- Keep all receipts and documentation
Is your commercial insurance up to speed?
Some policies provide coverage for business interruption losses, including salary payments, if you must temporarily close after a covered event. But beware: exclusions are common. Sewer backups, seepage, slow leaks or mould are not always covered.
Take a few minutes to review your policy with your commercial insurance agent or broker to ensure your coverage meets your needs. It’s better to ask questions now than deal with unpleasant surprises later.
Published on February 6, 2026