How to Protect Against Business Fire Threats

Fire is one of the biggest threats to commercial property. According to National Fire Protection Association (NFPA), there were 499,500 fires in the United States, and 28% of these fires involved commercial buildings, causing billions of dollars in damage.

A different analysis is Hartford Insurance Company found that fire damage was one of the five most common causes of accidents, costing $35,000. In the next decade, it is estimated that four out of every 10 businesses will file a fire insurance claim.

These statistics clearly show that fire risk management is critical to protecting people, property and profits. Read on to learn more about the causes of business fires, how to prevent business fires and how to use commercial property insurance to protect yourself from damage.

Causes of Business Fires

The causes of fire vary by business. For example, cooking appliances are a common cause of fires in office buildings. According to NFPA, 29% of all office fires are caused by cooking equipment. Other causes of office fires are electricity, electricity, lighting and heating equipment.

Industrial facilities such as manufacturing plants also experience thousands of fires every year. According to NFPANational fire departments responded to approximately 38,000 industrial fires each year between 2011 and 2015. Additionally, electrical distribution and lighting equipment accounted for 24% of all fires.

How to Avoid a Fire Business

There are many ways to protect your business in the event of a fire. Fire protection for your business can save lives and thousands of dollars in out-of-pocket costs.

Install Alarm System and Sprinklers. Security alarms work to stop people who have been targeted by criminals from committing crimes. Fire sprinklers are also very effective. According to Prepare Fire ProtectionProfessionally installed and maintained sprinklers can reduce the direct cost of property damage by 68%.

Invest in Fireworks. A major cause of commercial building fires is caused by cooking equipment. These fires usually start small and are easy to put out with a fire extinguisher. Make sure you place the fire extinguisher in an easily accessible place, near your kitchen. Additionally, check them regularly to make sure they are working. Accumulation of dirt, rust, wear and tear caused by adjacent machinery can cause fire extinguishers to leak and deteriorate over time.

All fire extinguishers should be inspected on a regular basis. Many insurance policies apply NFPA 10 Essentially, fire extinguishers must be checked and tested regularly. One faulty fire extinguisher can mean the difference between life and death. Some policies require businesses to comply Value of NFPA72The National Fire Alarm & Signaling Code Standard, which ensures compliance with the proper installation, testing and maintenance of fire alarms.

Create a Fire Rescue Plan. Fire evacuation plans help protect people and businesses by establishing a clear plan in the event of a fire. It is important to establish a list of rules, define the roles and responsibilities with the employees, and write down the first and second escape routes. Fire evacuation plans also mean establishing primary and secondary communication methods to ensure that all parties involved are informed quickly.

How to Protect Yourself from Business Fire Risks with Insurance

One of the best ways to protect yourself from fire hazards is to maintain adequate commercial property insurance. Commercial property insurance protects against fire damage to your home and its contents such as goods and equipment.

A business owner’s policy (BOP) is an alternative to commercial property insurance. BOPs are pre-planned property and liability policies designed for small businesses, while commercial property insurance provides automatic protection for large companies with high risk.

Regardless of the type of policy, property insurance limits must be reviewed annually to ensure that they are sufficient to cover the cost of property damage and repairs. This is especially important now that rising prices, shortages and shortages are all driving up repair costs and time. Remember that if you have a fire claim and the limits of your property insurance are not sufficient, your payments may be reduced by the coinsurance clause.

Contact the insurance team at BNC Insurance for property insurance guidance and options and review your limits.