Water damage is the one of the most frequent causes of property loss for clinics and businesses insured in BMS association programs. Not only does this type of loss typically result in damage to your own equipment and property, but water leaks often damage neighbouring units too. Escape of water can even shut down your business operations, with unplanned evacuations because you have to send staff home during the clean-up, and property damage which can take a considerable amount of time to repair.
The average cost of a water damage claim for clinics insured under BMS insurance program is about $80,000 with some losses as high as six figures, so it’s important to have a robust risk management plan for your business and the proper insurance in place to protect you.
According to Craig Stewart, Insurance Bureau of Canada’s Vice President of Federal Affairs “Over 85% of insured losses since 2000 have been due to water.”
Sources of Water Damage
Water damage is most often the result of:
- Human error (e.g., leaving a tap running or a window open);
- Weather events such as high winds combined with rain;
- Unmaintained, aging or faulty plumbing, windows, seals or equipment;
- Water leaks that go undetected.
Monitoring interior and exterior areas (BMS)
The impact of water damage to your premises and building can depend on the source location, placement of equipment and time it takes to detect.
Regular inspections of both the inside and outside of your office space (and building, if applicable) can help you minimize potential damage and associated costs. You may want to enlist the services of a plumber or HVAC specialist, as some of the inspections recommended below are best left to the professionals. Your inspector will likely review the following when conducting their inspection of equipment and piping, your grounds and the building interior and exterior.
Many business owners are unaware that damage from flooding and back-up sewer lines is not available under some Commercial Property Insurance policies. However, the Clinic/Business Package policy available for CAR members can protect against these, along with other types of water damage, such as from a burst pipe. You also have built-in business interruption coverage to cover your operational costs, such as staff salaries, and to replace the income you would have generated in the time it takes to get your business back up and running again.
CAR has partnered with BMS Canada Risk Services Ltd. (BMS), a specialist insurance broker, to provide members exclusive access to Business Insurance at competitive rates, including:
- Commercial General Liability
- Clinic Professional Liability
- Business Package (Property, Contents, Business Interruption & Crime)
- Cyber Security & Privacy Liability
- Employment Practices Liability
BMS’s team of Brokers can also provide a complimentary review of your current insurance portfolio to ensure your business is adequately covered.
To arrange a call to review, find out more information or apply for coverage, contact BMS today on 1-855-318-6558 or email radiology@bmsgroup.com.
References:
https://www.canadianunderwriter.ca/features/treading-water/
https://ottawacitizen.com/news/local-news/water-is-the-new-fire-national-strategy-needed-for-flooding-says-insurance-expert
https://www.avivacanada.com/sites/default/files/aviva_pdf/en/water_damage_prevention_condos_apartments_en.pdf