• Business Wildfire Resiliency Plan (BWRP) User’s Guide

    Welcome to the web-based version of the Business Wildfire Resiliency Plan (BWRP) User’s Guide.

    This digital guide is a companion to the BWRP Template and contains detailed information and links to a selection of other publicly available reference materials to help you develop the content of your plan.

    To make the planning process as straight-forward as possible, there are links in the Template that take you directly to the associated section of the User’s Guide on this website. Or if you prefer, you can also download and work with a hard copy of the User’s Guide.

    A Pioneering Tool for Businesses

    The BWRP Template and User’s Guide is one of the first known attempts to create a comprehensive wildfire planning tool specifically for businesses.

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    Please consider these to be living documents. As you use them, we would appreciate hearing from you about what works well and what could be improved (and how).

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    1. Introduction

    Extreme wildfires have become a substantial annual threat in Canada resulting in significant and widespread impacts, including on individual businesses and the overall economy. The Business Wildfire Resiliency Plan (BWRP) Template and User’s Guide were created to provide a tool for businesses to use to prepare for and mitigate the potential impacts from wildfires and wildfire smoke. Businesses located within or in the vicinity of forested and grassland areas – in what is known as the Wildland-Urban Interface (WUI) – are most susceptible to direct damage; however, as recent experience has shown smoke from wildfires can travel hundreds or thousands of kilometers and therefore can affect businesses anywhere in Canada.

    Wildfires are a natural and ecologically essential component in many of Canada’s forest ecosystems, but various factors including the rapid expansion of urban development into wildlands has increased the risk from wildfire to human life, health, and property. There are numerous examples of this over the past decade including the following.

    FORT MCMURRAY, AB 20161

    • 80,000 people evacuated.
    • 1,600 structures lost (including several business).
    • Major disruption to local industries and businesses causing significant economic losses.
    • $3.8 billion in insured losses (making it the most expensive natural disaster in Canadian history at that time).

    LYTTON, BC 20212

    • Entire town was evacuated.
    • 520 structures, including all of the businesses, were burned.
    • 2 deaths.
    • Residents had to be relocated for years and rebuilding has been difficult and slow.
    • Over $100 million (estimated) in insured losses.

    TANTALLON, NS 20233

    • 16,000 people evacuated: thousands more left without power.
    • Over 200 properties, including 151 homes were damaged or destroyed.
    • $165 million (estimated) in insured damage.

    CANADA 20234

    • 15 million ha burned (~6 times the 25-year average and double the previous record).
    • 200 communities evacuated displacing more than 232,000 people.
    • Over 1000 structures destroyed.
    • $1.7 billion (estimated) insured losses.
    • Millions of people across Canada and in the United States were exposed to hazardous air quality from wildfire smoke on numerous days.

    JASPER, AB 20245

    • 25,000 residents, workers, and visitors were evacuated.
    • 358 structures (including several businesses) were destroyed (i.e., one-third of all structures in the community).
    • $1.3 billion (estimated) in insured losses.

    Canada 20255

    • 8.8 million ha burned (second most on record).
    • 85,000 people evacuated in all regions of the country; Over 630 structures lost; Two deaths.
    • $370 million (estimated) insured losses in Manitoba, Saskatchewan, and Newfoundland and Labrador.
    • Smoke from wildfires in the prairies travelled across Canada, into the mid-western and eastern United States, and across the Atlantic Ocean to central and southern Europe.

    Why preparing for wildfire is important for your business

    The worsening wildfire situation has been found to impact businesses like yours in several ways.6

    1. Disruptions to operations: Wildfires can lead to the closure or evacuation of businesses in affected regions, disrupting production, supply chains, and services.
    2. Damage to infrastructure and property: Businesses located in wildfire-prone areas may suffer from damage to their buildings, equipment, and other assets, leading to financial losses.
    3. Supply chain disruptions: Wildfires can disrupt transportation routes and logistics, affecting the movement of goods and materials, which can impact businesses reliant on a stable supply chain.
    4. Increased costs: Businesses may face increased costs due to damage, insurance premiums, and implementing measures to prevent future fire risks.
    5. Loss of revenue: During and after wildfires, reduced consumer activity and tourism can lead to a decline in sales and revenue for businesses in the affected regions.
    6. Insurance challenges: Businesses may encounter difficulties in obtaining or renewing insurance coverage in high-risk wildfire areas, leading to higher costs or potential limitations in coverage.
    7. Health and safety concerns: Wildfire smoke and air pollution can pose health risks to employees and customers, leading to potential productivity losses and increased medical expenses.
    8. Long-term economic impacts: include fluctuations in prices as the supply struggles to catch up with demand and rebuild stocks. Delays on projects due to limited raw materials availability, closures, job losses, and the loss of premises and equipment. Additionally, the capital that could have been earmarked for potential reinvestment now needs to be allocated to rebuild facilities.

    Commercial insurance and business continuity

    In today’s high-risk world, it is crucial for commercial entities of all sizes and types to have proper insurance protection in place so they can financially weather almost any unplanned loss event they may experience, including the physical and financial impacts of wildfires. Appendix A provides a description of the common insurance coverages that are available to commercial entities in Canada as well as business continuity information. Significant differences can, however, exist between business entities and insurance providers, therefore it is always best to discuss coverage issues in detail with your licenced professional insurance provider (broker, agent or direct insurance provider) and to involve corporate risk managers and legal counsel where available.

    To date, wildfire hazard assessment and risk mitigation guidance has largely been focused on residential homes, communities and large industry. As such, the purpose of the Business Wildfire Resiliency Plan Template and User’s Guide is to help small- and medium-sized businesses develop an appropriate and science-based approach to minimizing the risk from wildfire that is responsive to the needs of different types of businesses throughout Canada and tailored to their size, capacity, and the hazards they face.

    The primary goals of the planning process are to:

    • Increase the awareness and understanding of the risk from wildfire to a business.
    • Develop achievable and accountable actions to mitigate the risk to business assets7 and operational continuity.
    • Foster greater collaboration within the business community and with public sector organizations.

    7 Canada Revenue Agency defines business assets as any form of property owned by the business including: money, land, buildings, investments,  inventory, cars, trucks, boats, or other valuables that belong to a person or business.

    The BWRP Template and this companion BWRP User’s Guide enable businesses to create a comprehensive fire resiliency plan in a collaborative, cost-effective, and time-efficient manner. They were developed to address seven Business Wildfire Resilience Disciplines which are adapted from the existing seven FireSmarttm disciplines8 (Table 1). Each of the Business Wildfire Resilience Disciplines represent a different aspect of wildfire prevention, planning, mitigation, preparedness, response, and recovery for businesses and when implemented together create a holistic approach for addressing the risk from wildfire to small– and medium-sized businesses. The Template is an easy-to-follow step-by-step framework and the User’s Guide provides explanatory information and other guidance to support businesses in plan development.9

    Table 1. Cross referencing of the FireSmart Disciplines with the Business Wildfire Resilience Disciplines

    FireSmart DisciplineBusiness Wildfire Resilience Discipline
    Public EducationEducation (staff, contractors, clients and visitors)
    LegislationPolicy
    Emergency PlanningEmergency, Recovery, and Business Continuity Planning
    DevelopmentHardening of Facilities & Other Assets
    Vegetation ManagementVegetation & Other Combustibles Management
    Interagency CooperationLocal Partner & Agency Cooperation
    Cross TrainingTraining and Coordination

    Appendix A – Business Continuity and Insurance

    There is extensive international research which indicates that commercial entities with proper insurance protection in place at the time of loss recover much quicker than do entities with inadequate or no coverage.

    The following explains at a very high level some of the more common commercial insurance coverages that are available to Canadian commercial entities, and why they should purchase them.

    Commercial property insurance is a type of coverage that protects commercial entities from financial loss due to damage or destruction of their physical assets, including buildings, equipment, inventory, and other property. This insurance typically covers risks such as fire (including wildfire), theft, vandalism, natural hazards, and other unforeseen events that could impact the operation of a business.

    Having commercial property insurance is crucial because it helps mitigate the financial impacts of property damage, allowing businesses to recover faster and continue operations with as few disruptions as possible. Without this coverage, a business could face crippling costs to repair or replace damaged property, potentially leading to business closure or severe financial strain. Ultimately, commercial property insurance provides peace of mind, ensuring that a company can protect its physical assets and remain resilient in the face of unexpected challenges, like a wildland fire.

    Business interruption insurance is a type of coverage that helps protect businesses from financial losses due to unexpected events that disrupt normal operations, such as natural hazards, fires (including wildfires), or other covered incidents. It typically covers lost income, fixed operating expenses (like rent and utilities), and additional costs required to keep the business running while it is temporarily closed or damaged.

    This insurance is crucial because even if the physical property is covered by commercial property insurance, the business may still lose revenue while it recovers. Without business interruption insurance, a company could face significant financial strain during periods of downtime, potentially leading to layoffs, inability to pay bills, or even bankruptcy. By providing financial support during these difficult times, business interruption insurance ensures that businesses can survive temporary setbacks and still continue to operate.

    Contingent business interruption insurance is a specialized type of coverage that protects businesses from financial loss when a key supplier, customer, or partner is affected by a covered event, causing a disruption in the supply chain or business operations. For example, if a supplier’s factory is damaged by a fire, and this prevents the business from obtaining necessary materials, contingent business interruption insurance can help cover the lost income and additional expenses incurred during the disruption.

    This type of insurance is important because it extends the protection of business interruption insurance to situations where the business itself isn’t directly impacted, but the event still has a significant ripple effect on its ability to operate. Without this coverage, businesses might suffer severe financial losses even when their own property remains unharmed, making it a vital safeguard in today’s interconnected supply chain environment.

    Off-premises utility disruption insurance is a type of coverage that protects businesses against financial losses resulting from the disruption of power supply to their premises. This insurance is particularly important for businesses that rely heavily on electricity to operate, such as manufacturers, data centers, or retail stores with refrigeration needs. If an off-premise event, such as a power grid failure, downed utility lines, or a natural hazard, causes a loss of power to the business, this coverage can help mitigate the financial impact. It typically covers lost income, additional expenses incurred to keep operations running (like renting backup generators), and the cost of spoiled goods or damaged equipment.

    Having off-premise utility disruption insurance is crucial because even though the business’s property may not be directly affected, the loss of power can lead to significant operational disruptions, inventory loss, and revenue decline. This insurance helps businesses manage risks associated with power outages that are beyond their control, ensuring they can recover more quickly and minimize downtime.

    Commercial liability insurance is a type of coverage that protects businesses from financial losses resulting from claims of injury or damage caused by the business’s operations, products, or employees. It typically includes general liability insurance, which covers bodily injury, property damage, and advertising injury; and may also extend to more specific types, such as product liability or professional liability insurance.

    This insurance is crucial because it helps shield businesses from the high costs of legal fees, settlements, or judgments if they are found liable for accidents or harm to others, such as if the business is responsible for starting a wildland fire.

    A business could be held liable for starting a wildfire if its actions or negligence directly contributed to the ignition or spread of a fire. For example, a manufacturing facility that improperly disposes of flammable waste materials, or a construction company that fails to follow fire safety protocols while operating heavy machinery in dry, high-risk areas, could inadvertently start a wildfire. Similarly, a business that engages in land clearing or vegetation management without taking proper precautions, such as ensuring equipment is well-maintained or using fire-resistant methods, might be responsible for causing a fire that spreads uncontrollably. If the wildfire results in property damage, personal injury, or environmental harm, the business could be held liable for the costs of containment, restoration, and compensation for affected parties. Additionally, businesses in industries like oil and gas, logging, electrical utilities, or agriculture, which operate in fire-prone areas, are expected to take extra care to prevent wildfires, and failing to do so could lead to legal and financial repercussions. In such cases, commercial liability insurance may help cover the business’s defense costs, settlements, or damages awarded to victims of the fire.

    Without commercial liability insurance, a business could be forced to pay out-of-pocket for lawsuits, which can lead to severe financial strain, reputational damage, or even bankruptcy. By having commercial liability insurance, businesses can mitigate the risk of costly legal battles, protect their assets, and continue operating with greater peace of mind knowing they are covered in case of unforeseen incidents.

    Specialty commercial insurance coverages are tailored policies designed to address unique risks faced by specific industries or business operations that aren’t typically covered under standard commercial insurance plans. Some common examples include professional liability insurance (also known as errors and omissions), which protects businesses from claims of negligence or mistakes in services provided; cyber liability insurance, which covers data breaches, hacking, and other cyber-related threats; and product liability insurance, which safeguards manufacturers or retailers against claims of injury or damage caused by their products.

    Additionally, there are coverages like environmental liability insurance for businesses dealing with hazardous materials, and directors and officers (D&O) insurance, which protects corporate leaders from claims related to management decisions. These specialty coverages are important because they fill in the gaps that standard policies might leave, offering businesses the protection they need against industry-specific risks. Without these customized policies, companies could face significant financial exposure, legal costs, or reputational damage that could threaten their survival. By having the right specialty insurance, businesses can reduce these risks and operate with greater confidence.


    Acknowledgements

    The development of the Business Wildfire Resiliency Plan Template and User’s Guide was funded by FireSmart™ Canada and guided through input from an Institute for Catastrophic Loss Reduction (ICLR) Advisory Group. The documents are based on an existing framework and concepts from the British Columbia FireSmart Community Wildfire Resiliency Template and Instruction Guide. The efforts of staff at Environment and Climate Change Canada in compiling and providing historical air quality data is greatly appreciated along with the creative work by Hans Pellikaan (designer) and the website team.

    TM Firesmart, Intelli-feu and other associated Marks are trademarks of the Canadian Interagency Forest Fire Centre (CIFFC).