A tornado can wreak havoc on any business and its employees. Having a business continuity plan may help you recover from a tornado faster and minimize business interruption. This tornado preparedness guide has advice on how to plan for and recover from a tornado, as well as how to file an insurance claim should a tornado disrupt your business.

Plan for your business's safety before tornado season

If you live in an area with a high probability of tornadoes, review your insurance coverage with your Gallagher advocate. Most Commercial Property insurance policies provide coverage for tornado damage to businesses.

We recommend taking these steps to ensure you're ready for a tornado.

Make sure your phone can receive emergency alerts

The National Public Alerting System sends geo-targeted emergency alerts. To make sure your mobile phone can receive them, test your phone's compatibility at Alert Ready.

Know what to do when a tornado watch or warning is issued

Tornadoes can develop quickly. Warning signs include rapidly increasing wind speeds, dark greenish skies, large hail and a loud roaring noise. When conditions exist that could produce tornadoes, Environment Canada issues an alert on radio, television, online news sources, Environment Canada's website and its weather phone lines.

  • A tornado watch means conditions favour the development of tornados.
  • A tornado warning means a tornado has been reported or detected on radar.

If you live in an area of Canada with a high risk of tornados — notably southernmost Saskatchewan and Manitoba, and southwestern Ontario — check Environment Canada's information sources for tornado notifications during severe thunderstorms.

During a watch or warning, seek shelter immediately and follow the safety guidelines below.

  • Go to an interior space without windows, such as a basement, bathroom or stairwell. Stay away from windows, doors and outside walls.
  • Don't open windows to "equalize the pressure" — that outdated practice is dangerous.
  • Check local emergency news sources for updates about the tornado.
  • Don't stop under an overpass or bridge.
  • If possible, shelter in a sturdy building. If no shelter is available, do one of the following:
    • Stay in your vehicle with the seatbelt on and your head lower than the window. Cover your head with a blanket or jacket if available. Use your arms to protect your head and neck from debris.
    • Leave the vehicle and lie in a ditch or other low area, as far from trees as possible.
  • Lie in a ditch or other low area, as far from trees as possible.
  • Cover your head with a blanket or jacket if available. Use your arms to protect your head and neck from debris.

Wherever you sheltered, be sure that the tornado is over before you leave — more than one tornado can develop from the same storm.

Recover after a tornado

If any of the business's buildings is damaged, do the following:

  • Use caution tape to cordon off areas that are unsafe because of fallen trees, downed power lines, debris, unstable structures and other hazards.
  • Inspect building foundations and retaining walls for cracks and other significant damage.
  • From outside, use a flashlight to examine interior walls, floors, doors and windows. Don't enter any building if you suspect it could be structurally unsound.
  • Complete an incident report and forward pictures to your supervisor, corporate office and insurance broker.

While organizing your post-tornado recovery efforts for your business, review your tornado emergency plan and update as necessary. If you used any item in the disaster supply kit, restock it with items on the Disaster Supply List.

Also, review your Natural Catastrophes: Preparing for Business Interruption and Extra Expense Claims list for how to assess possible business interruption impacts, as well as potential claims coverage. Lastly, complete any mitigation items as directed by your insurance carrier.

You might need to contact the following after a tornado:

  • Emergency services — such as the fire department, gas and electric companies — as necessary, based on your review of the property.
  • A security company if there's sufficient damage to the property to arrange for surveillance. Instruct them to help direct emergency vehicles into the area and give them a list of approved employees, to reduce the possibility of looting.
  • Local hospitals regarding injured staff. Keep a log of all calls.
  • Your corporate office and insurance carrier to verbally report damage, so an adjuster can be sent to the site.
  • Vendors — such as cleaning services, tree-trimming services, electricians or plumbers — to help reduce further damage to the property.

File a claim after a tornado

When it's safe to return to your business, you can begin your post-tornado recovery measures. Take photos and/or videos of the damage and inspect the facility for structural damage.

Provide the inspection information to your Gallagher broker or claims advocate. You can also provide the Natural Catastrophes: Preparing for Business Interruption and Extra Expense Claims list.

It's important that your Gallagher broker or claims advocate receive this information as quickly as possible.

Claims Resources for Commercial Businesses

Claims Resources for Small Businesses

Starting a commercial insurance claim for tornado damage

The claims advocate must have as much detail as possible to initiate a commercial insurance claim and begin an investigation. If possible, provide before and after photos or videos.

Claims process for commercial insurance: What to expect

Throughout the claim investigation process, please reach out to your Gallagher advocate with specific policy and claim questions. During this high-volume claim-reporting period, you should anticipate the following:

  • The adjuster assignment and initial contact may take some time. Some insurers may use adjusters under contract rather than staff adjusters, so the adjuster's contact information may be different from expected.
  • Access to the affected areas may be limited for some time after the tornado.
  • Competition for labor and materials may be high, which could affect the timeframe and costs associated with repair and remediation.
  • Work closely with your adjuster. If you have questions regarding the resolution process, your Gallagher advocate is here to assist and ensure you're in control of the claim process.

Your policy and your insurance company's website have important information about how to handle claims and manage losses. To summarize your policy details, use the Policy and Claim Reporting Information Directory.

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