As the eye of a weakened Hurricane Bill nears Canada's east coast, residents are battening down in preparation for damaging winds, pounding seas and heavy rain - and insurers along the crowded coastline are bracing for plenty of claims.

Bill, now downgraded to a category one, failed to inflict extensive damage in its path north from the Caribbean but caused coastal flooding in the Dominican Republic and Bermuda.

There are fears some oil and natural gas platforms and refineries in eastern Canada could bear the brunt of the wild conditions.