As Canada experiences more frequent and severe wildfires, smoke damage has become a costly and often underestimated threat for small and mid-sized enterprises (SMEs). While flames capture the headlines, disaster recovery expert Jim Mandeville (pictured), senior vice president, large loss North America at First Onsite Property Restoration, said the real (and often hidden) impact can come from the smoke itself.
“When we see fires on the news, we see the flames, the burnt wood, the fire department knocking out windows. That’s obvious damage,” Mandeville said. “But the part we don’t see, especially in bigger buildings, is that smoke damage often causes many times the amount of damage in terms of cost than the actual fire does.”
This is where brokers can play a pivotal role. Mandeville describes them as a critical link in the risk management chain, helping business owners understand not just the immediate threat of fire but also the extensive and long-lasting impact of smoke.
“I’m a big advocate of insurance brokers,” he said. “I rely on my broker as the old game show used to say – ‘phone a friend.’ Ask them what they think. They’ve generally got a lot more experience than your average insured… and they can connect you with experts to provide solutions for any sort of crisis.”
For brokers, the opportunity lies in being proactive – educating SME clients about coverage gaps, connecting them with smoke damage specialists, and guiding them toward risk mitigation strategies before a disaster strikes. That might mean walking through policy language to determine whether smoke is explicitly covered, or helping business owners understand what documentation, testing, and cleanup procedures will be required to make a successful claim, Mandeville said.
“Brokers play a really critical role in the ecosystem across our country,” he said. “They can help mitigate loss or avoid loss entirely, and they can be the conduit to the right resources when something happens.”
According to Mandeville, most smaller businesses simply aren’t ready for the disruption wildfire smoke can cause.
“I think that small businesses are not prepared at all as a general statement for smoke damage – or for most kinds of damage – because it takes everything in them just to run their business every day,” he said. “It’s very, very hard as an entrepreneur or small business owner to carve out any extra time to prepare for anything, even though it’s very important.”
Older buildings with outdated ventilation, windows, and doors are more prone to smoke infiltration, while high-traffic businesses such as grocery stores and banks face increased risk simply because customers and staff are constantly coming and going.
“No matter what fancy technology we put in place… eventually you have to leave, and the only way you can leave is to open the door – and you’re going to let smoke in,” Mandeville said.
Even when smoke damage is suspected, there’s often confusion over what qualifies as damage and how far cleanup efforts need to go. Scientific testing has become a vital tool in recent years, helping to determine whether contamination is from an environmental background or from a specific fire event, Mandeville pointed out. This, he said, can be crucial in both coverage decisions and controlling mitigation costs.
For Mandeville, the message to SMEs is clear: smoke is not just a nuisance – it’s a health hazard that requires professional attention. “The smoke and the soot that’s left… can really present a major health hazard, and it’s really not something that, as a lay person, you should mess with. Always seek professional help when you have smoke damage in your building.”
The urgency around wildfire smoke protection is not just theoretical, Mandeville says. In recent years, smoke plumes from forest fires have invaded Toronto and much of the Greater Toronto Area, at times pushing air quality levels among the worst in the world and triggering special air quality statements.
“With wildfires, there is a substantial risk of interruption to lives and businesses from smoke,” Mandeville said.
That risk is reflected in public sentiment. An annual wildfire survey of 1,500 adults by First Onsite Property Restoration found that two-thirds of Canadians (63 percent) are worried about the damage caused by wildfires, while 65 percent are concerned about wildfire smoke specifically.
For brokers, these numbers point to a growing client awareness – and anxiety – around the issue. It’s an opening for meaningful conversations with SME clients about what protection looks like in practice, from confirming coverage details to putting contingency plans in place before smoke becomes a direct threat, Mandeville said.
