When wildfires strike, the immediate concern is always safety: evacuating guests, protecting staff, and minimizing property damage. But once the smoke clears, many hotel operators find themselves facing a different kind of crisis—a long, uncertain road to financial recovery.
Even if your insurance covers property damage, that may only be one piece of the puzzle. The real question is: Can your hotel survive the downtime?
The Hidden Costs of Recovery
Rebuilding a hotel isn’t just about fixing walls or replacing equipment. Recovery can stretch well beyond what most standard insurance policies are designed to support.
Here’s what can delay your return to normal operations:
In many cases, these delays can push the reopening timeline well beyond 12 months. Yet, most business interruption insurance policies only cover up to one year of lost income.
What Is an Indemnity Period—and Why Does It Matter?
Your policy’s indemnity period is the length of time your insurance will compensate you for lost income after a disruption like a wildfire. For many hotels, a 12-month indemnity period simply isn’t enough.
Extending your indemnity period to 24 or 36 months can mean the difference between bouncing back and shutting down for good. It allows your hotel to:
Proactive Planning with the Hospitality Insurance Program
Through the Hospitality Insurance Program (HIP), AHLA and Western Financial Group offer insurance products tailored to the real-world needs of Alberta’s hospitality industry. Whether you’re already insured through HIP or not, our goal is to help hotel owners:
Not sure what your current policy includes? We're here to help.
Get a FREE, no-obligation review from someone who understands the unique needs of Alberta’s hospitality sector. Call 1-866-665-8990 or email drew.woytko@westernfg.ca.
Additional Wildfire Preparedness Resources
AHLA also offers free emergency planning tools for hotels, including guidance on evacuation procedures, guest accommodation, and safe reopening practices. Start preparing today: Emergency Response Planning for Hotels. Additionally, please ensure you monitor Alberta Emergency Alerts for province-wide wildfire activity updates.
Don’t Wait Until After the Fire
Business interruption insurance isn’t just about protecting your revenue—it’s about protecting your future. If you had to close tomorrow, would your coverage get you through to reopening? The time to ask that question is now, not after disaster strikes.
Get more information HERE.