When the ground shakes, will your coverage hold up?

Earthquakes are more common than you think

The ground shakes about 4,000 times a year in Canada. That’s roughly one earthquake every day somewhere in the country. Most are minor, but they’re very real.

British Columbia tops the list for seismic activity, yet Quebec isn’t quake-proof. Regions like Charlevoix, Outaouais and Bas-Saint-Laurent experience frequent tremors, accounting for 40 to 45% of the yearly earthquakes recorded in La Belle Province.

Interested in learning more? The Geological Survey of Canada tracks seismic activity nationwide and shares maps showing risk levels by province.

The price of a big quake?  Billions

According to a study conducted by the University of Waterloo and the Intact Centre on Climate Adaptation, a major earthquake could cause staggering economic losses: $75 billion in British Columbia (magnitude 9) and $61 billion in the Quebec–Montreal–Ottawa region (magnitude 7).

More worrisome still, a substantial portion of these potential losses wouldn’t be covered by insurance, i.e. roughly $20 billion in Western Canada and $19 billion in the Quebec region.

What could an earthquake mean for your business?

Even a moderately strong earthquake can do much more than leave a few cracks.

The tremors can:

• Compromise your building’s structure, causing cracks, major damage, or partial collapse
• Damage to essential, expensive equipment that’s critical to your operations
• Disrupt core systems like plumbing, heating, ventilation and telecommunications
• Destroy inventory or contaminate certain products

The fallout from such damage can shut down your business and lead to a series of costly problems:

• Loss of income
• Steep repair costs
• Unexpected relocation costs
• Disruptions to logistics
• Customer dissatisfaction
• Harm to your reputation

Check your insurance policy to see whether earthquake damage is included

If an earthquake were to strike today, would your business be covered? Not necessarily. Even with “All perils” coverage, your basic commercial insurance only covers damage caused by fire, explosion, or smoke resulting from an earthquake.

Without specific earthquake coverage added to your policy, your buildings, equipment, and inventory may be left unprotected against direct damage.

And it does more than cover physical losses, it also protects your business from downtime, ensuring that you resume your business activities quickly.

Take a moment to check your insurance policy to see whether your business is covered in case of an earthquake. If not, contact your broker to determine the level of coverage you need.

If the ground started shaking, would you know what to do?

Earthquakes are unpredictable, but a solid emergency plan can help you limit the impact and help you get back on track quickly.

Get ready before the ground shakes

• Stock emergency kits and keep them readily accessible.
• Develop a detailed response plan. Make sure all your employees know the plan and schedule regular refreshers to keep everyone prepared.

During an earthquake

Everyone inside the building should:

• Stay inside
• Drop to the floor immediately
• Take cover under a sturdy desk or table
• Hold on tightly

Avoid doorways as they not as safe as you might think  Steer clear of windows, hanging lights or anything that could fall or move

Once the shaking stops

Make sure that everyone is safe. Account for all staff, check for injuries, and assess the building for damage. If you notice any signs of structural danger, evacuate the premises immediately.

Take part in The Great ShakeOut: A full-scale earthquake drill

Ever heard of The Great ShakeOut? Held every October, this global event is the largest earthquake preparedness exercise. It’s a great opportunity to put your emergency plan to the test, see what works and make any adjustments.