Sewage leaks and other unexpected problems can ravage bottom lines

Small business owners have likely heard the adage to work on their business as well as at their business. The advice is meant to convey that businesses should try to plan ahead when possible.

Unexpected emergencies or disruptions could arise, which is why it always helps to have thought in advance about potential glitches and to have plans for what to do if they materialize.

Planning is no silver bullet. A new government project may significantly impede passersby.

Merchants along the Broadway Corridor, for example, have told BIV that their businesses continue to endure a steep drop in walk-in traffic thanks to the nearly $3-billion subway project that launched construction in 2021 and continues today, with the line not scheduled to open until fall 2027.

Many have hung on through seemingly endless months of fencing, dust and noise that discourages walk-by traffic on the thoroughfare. Others have closed.

Greens Market owner Sentheepan Senthivel told BIV that disruption outside his store, between Maple and Cypress streets on Broadway, remained significant this summer.

He opened his store 15 years ago, before proposals for a subway line along Broadway.

"It gets worse at times, when they do different kinds of work, and they shut down the streets," he said.

Loans and an understanding landlord have helped his business survive, he added.

Other times, small-business owners arrive at their workplaces to find someone has broken front windows or otherwise vandalized their businesses.

Some small-business owners survive the wanton vandalism, and what can be thousands of dollars in expenses out of their own pocket because insurance companies no longer cover them for the damage.

Others told BIV that things got so bad that they had to close.

John Boychuk said he experienced vandalism and broken windows multiple times in recent years, when he operated Davie Village Tanning.

"I decided to pack it in," he told BIV this month.

"I just got so fed up and frustrated and the amount of loss that I incurred between 2022 and 2025 -- it was just too much."

His lease was up this month but his relations with nearby business owners were strong enough that he was able to find one to assume the final months of his lease.

He closed in February, near the end of the tanning-bed season because he could foresee tens of thousands of dollars in losses through the summer, he said.

Unexpected damage can take a smellier turn.

Brunette The Label owner Miriam Alden told BIV she had a small store in Chinatown until an upstairs tenant's sewage pipe burst during the pandemic, causing her extensive damage.

Her clothing retailer lost much of its inventory and her insurance policy did not cover the true cost of the loss, she said.

Insurance covered the raw cost of the goods, which were made in Asia, she said. It did not cover extra costs such as taxes, duties, shipping fees and other expenses related to bringing the goods into Canada, she explained.

Her lease was nearly up and, instead of renewing it, she decided to shift to selling entirely online.

Years later, she said her e-commerce business is doing well.

Eclipse Awards owner Toby Barazzuol had a similar experience to Alden, although it was his own water pipe that burst in a wall of his Alexander Street office.

"There was water pouring through parts of the ceiling and a lot of our equipment and our computers were soaked," he said of the situation that struck in August.

His ultraviolet printer, estimated to cost about $60,000 was ruined, he said.

In all, his material costs exceeded $100,000.

On top of that were business losses because he was unable to complete some orders or take new ones that required UV printing.

After he cleaned up his site with his team, his first instinct was to phone the insurance company and file a claim.

"In retrospect, I should not have done that," he said.

Better, he explained, would have been to phone his insurance broker at the local chain B&W Insurance Brokers.

He did not do that until about 10 days later.

Barazzuol said he learned that the insurance broker was better equipped to lobby on his behalf with the insurance company.

"The broker has a better way of framing things or presenting information to the insurance company that makes the insurance company more likely to pay up," said Barazzuol, who was a BIV Forty Under 40 winner in 2004.

He similarly praised his renovation company, Richmond-based Platinum Pro-Claim Restoration, which worked closely with the insurance company.

Barazzuol said while this is his first insurance claim in his 27 years running the business, and the cost of that insurance is likely about what he will be compensated from the flood, having sufficient insurance is key.

While he did not opt for business-disruption insurance that would have covered some of the lost business, he does have liability coverage that would kick in if someone is injured, or worse, on site, he said.

Resources help with strategic planning

Online resources from business advocates and B.C.'s Ministry of Jobs and Economic Growth may help with planning.

Some of that advice for entrepreneurs is to fully understand what insurance coverage they have, and what they do not have, according to a PreparedBC guide.

Other advice is to make clear to employees what their responsibilities would be during various emergencies.

Some small businesses are so busy that it can be a challenge for owners to make time for staff meetings. Those meetings can, however, be important to remind staff of what responsibilities they have during emergencies.

One possibility could be to hold a special session where an expert could come to give a presentation and there would be food and drink for employees to enjoy and be engaged during the session.

Emergency kits with basic supplies could help if a severe earthquake strikes, according to PreparedBC.

It is also a good idea to put date stamps on plans to make clear when they were devised, and to review them every so many years.

Keeping emergency phone numbers at a central location can also save time when emergency strikes.

"Know where your electrical panel, gas and water shut-off valves are located and how to turn them off," added PreparedBC.