Jasper wildfire rebuild: Challenges persist for local businesses

As the second anniversary of the 2024 Jasper Wildfire approaches, time and money has long run out for some businesses, while others are scrambling to survive.

“What we are seeing,” says Rob de Pruis, national director of consumer and industry relations for the Insurance Bureau of Canada, “is that when you have the total loss of an entire business, you may be underinsured or have insufficient funds to completely rebuild that full property.”

In its most recent update, the Jasper Recovery Coordination Center (JRCC) notes a mere 4% of the 374 fire-destroyed properties are complete and occupant-ready. Although this figure includes residential dwellings, it also includes businesses.

Ranging from home-based enterprises to oil sands operations, needs and coverage vary widely.

Beyond coverage for the buildings themselves — which does not include the same type of guaranteed replacement costs available in home insurance — coverage for both business interruption and lost revenue comes with both dollar and time limitations.

Consequence of choice

To save premium, some businesses make an informed decision at the time of purchase to opt out of certain coverages or intentionally reduce limits to help save premium, as de Pruis notes. In Jasper, those decisions have left some businesses unable to ride out the proverbial storm.

Business interruption coverage, for example, is typically purchased for 12-, 24-, and 36-month periods. Business clients opting for 12 months felt the impact about eight months ago. Those selecting 24 months will soon see their protection expire, too.

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When coverage runs out or is insufficient, business owners are left to figure out how to rebuild. This may mean securing a new mortgage or using some other type of investment — if they have one, says de Pruis.

“Will a business be able to continue if they’re not receiving any revenue from insurance, or if they haven’t had a chance yet to build and reestablish their business in a different location?” says de Pruis. “In some cases, they simply won’t have the finances they need to continue and will, unfortunately, fail.”

It’s not easy to determine the number of businesses facing this situation. Unlike auto insurance, property insurance is not tracked. Although insurance may be contractually required for those with a mortgage, it is not a legislated obligation.

“We don’t have information on how many people have insurance versus those who don’t,” explains de Pruis. “We also don’t have the numbers as to whether a business is fully insured or partially insured, and what that looks like.”

Impact of rule revision

Increased replacement costs are also having an impact on the rebuild in Jasper. Supply and demand are at play, and not all labour and materials required are available locally. This has added to both the cost and duration of rebuild projects, as has the need to use some very specific building materials.

“It took some time, but eventually [the Municipality of Jasper] changed the local building requirements,” de Pruis says. “You’re no longer allowed to build with combustible materials.”

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On July 25, 2025, the Town of Jasper Land Use Policy was updated to align with latest wildfire-resilient materials guidance.

Under Section 7.01, for example, all structures must be constructed or reconstructed with non-combustible surface perimeters, and attachments such as decks have to be surfaced with fire-resistant materials meeting Class A standards — the highest level of fire resistance available.

For businesses that do survive, the built-in resiliency associated with the mandated use of Class A materials will certainly help mitigate future risk.

However, insurance providers still need to work closely with businesses to ensure the most appropriate coverages and limits moving forward, based not only on price, but also on best practices and lessons learned.