Dealership Hail Protection

Increased Frequency, Severity, and Cost of Hail Events Across Canada

Across Canada, the frequency, severity, and cost of hailstorms are all rising. On June 13, 2020 alone, a hailstorm event in the Calgary area triggered a cumulative loss of $1.2 billion from an estimated 70,000 insurance claims.* In general, hailstorms in Canada most severely affect Alberta, the southern Prairies, and southern Ontario during a season which usually spans from May until October of each year. As a result, property in these regions are damaged more frequently by hail, heavy rainfall, and strong winds.

What is Hail?

Hail is type of solid precipitation that is possible within thunderstorms and is formed when water vapour in updrafts reaches a freezing point. Hailstones can be as small as peas or as large as softballs, with larger ones more likely to cause injury and serious damage. The average hailstorm lasts only five minutes, but the damage they cause can add up more than a billion dollars as seen by the most recent Calgary event.

Although the frequency, intensity, and distribution of hailstorms varies widely from year-to-year, the damage these storms cause is usually localized in nature. A storm that unleashes havoc in one area might leave property undamaged just half a kilometre away.

How to Minimize Hail Damage

• Sign-up for weather alerts so you have time to protect your property. Most smartphone weather apps will send you notifications when severe weather is coming. Make sure you have that notification turned on. It will tell you as soon as possible when hail might be coming, and give you time to protect your property.
• Install hail protection nets or canopies. If you live in an area that is prone to hail storms, consider purchasing a tested hail net or canopy system to keep your inventory safe throughout the season. For added protection, look for one that has covered sides or can be zipped closed.
• Store vehicle inventory indoors. If a storm is coming in, park all vehicles inside the dealership building, utilizing any space available. Park vehicles closely spaced within the showroom, drive through, and within the service shop, safely stacking vehicles with the use of hoists. This is something which should be practiced prior to the hail season so employees are aware of their duties and responsibilities in the event of a forecasted hailstorm.

Other Tips to Mitigate Damage of Outdoor Vehicle Inventory

• Use buildings as protection. Determine which way the wind is blowing and use the nearest building as a shield. If the wind is strong and hail pellets are blowing heavily in one direction, park as many vehicles as possible on the opposite side of the building, staying close to the wall to provide some protection. 
• Fitted car covers. Purchase vehicle-specific or generic protective covers designed to shield vehicles from the elements. Some companies make car covers specifically constructed to prevent hail damage.
• Cover your vehicles with whatever you have on hand. Thick blankets, comforters, tarpaulins, or even vehicle floor mats can be used to protect your vehicle inventory from serious hail damage. Use duct tape or ropes to secure your car’s makeshift protection until the storm has passed.
• Park vehicles away from trees or power lines. These items might fall or be blown onto your building or be thrown into vehicles during a storm. Consider trimming dead branches and removing dead trees on a regular basis. 
• Secure potential flying objects. If a severe storm is forecast, secure everything that might be blown around or torn loose — indoors and outdoors. Flying objects such as garbage cans and lawn furniture can injure people and damage property.

For more information on loss control, please contact your Marsh Advisory representative:

Sathyan (Sath) Laloo
416 200 0943 | Fax: 416 349 4564
sathyan.laloo@marsh.com

* https://www.cbc.ca/news/canada/calgary/calgary-hailstorm-costly-damage-1.5642317

^{This document and any recommendations, analysis, or advice provided by Marsh (collectively, the “Marsh Analysis”) are not intended to be taken as advice regarding any individual situation and should not be relied upon as such. This document contains proprietary, confidential information of Marsh and may not be shared with any third party, including other insurance producers, without Marsh’s prior written consent. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modelling, analytics, or projections are subject to inherent uncertainty, and the Marsh Analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Except as may be set forth in an agreement between you and Marsh, Marsh shall have no obligation to update the Marsh Analysis and shall have no liability to you or any other party with regard to the Marsh Analysis or to any services provided by a third party to you or Marsh. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage.}