Protecting Your Assets With Fire Suppression Insurance
Fire is constantly threatened in the wildland-urban interface, where homes and buildings intermingle with natural areas. Unfortunately, it can also damage or destroy your business.
Most houses ignite during a wildfire primarily from embers and small flames. Research shows that creating a defensible space is the most effective action to help homes survive.
Property Damage
Every year, fires cause catastrophic damage to homes and businesses. This destruction is often a result of insufficient fire suppression systems and preventive measures.
Insurance providers typically reward those who invest time and money in fire safety with lower premiums. It is because the insurance companies believe that communities with a history of proactive fire safety efforts have less to lose in the event of a disaster.
Many standard home and commercial property insurance policies offer additional protection against smoke damage. These policies can cover repairing or replacing expensive items damaged by the smoke generated during the fire.
Moreover, there are also comprehensive insurance policies that protect a business’s vehicles from fire damage. These policies can include all vehicles in a fleet of any size, including work trucks and company cars. Depending on the type of business, this coverage can be vital to a company’s success and profitability.
Business Interruption
Fires cause billions of dollars in business interruption losses every year. The loss of revenue and profit companies experience when their operations are shut down due to fire damage is the most apparent reason businesses need a business interruption policy. Business interruption insurance reimburses an organization for the income they would have earned if they were still operating, paying employee wages (including non-exempt overtime), paying rent and taxes, making loan payments, and other expenses that must be covered. At the same time, the company is temporarily shut down.
To minimize the risk of a business interruption, factory owners should always use fire protection equipment and store flammable materials safely. They should also have a fire evacuation plan and practice regular fire drills. Many fire supression insurance policies include business interruption coverage, compensating factory owners for the lost income they face due to the disruption in their operations. This coverage may have a waiting period and other conditions that vary by policy.
Liability
As a fire suppression contractor, you work on potentially life-saving projects at manufacturing plants, warehouses, police stations, and residential homes. But, working in these high-risk environments increases the risk of accidents that could cause property damage or bodily harm to third parties. As such, fire protection contractor insurance typically includes general and professional liability coverage that protects your business in case of errors or omissions related to your products and services.
Many policies also include comprehensive commercial auto insurance to cover the cost of a damaged or stolen vehicle. It is another essential component for any service-based business requiring vehicles to get to and from client sites. Some policies may also offer optional add-ons like umbrella liability, which increases the policy’s liability limits in case of a catastrophic loss. It is an essential addition for larger jobs and higher-risk locations. For instance, if your company works at a construction site with stairs, this add-on can protect you from claims related to slips and falls.
Employee Injuries
Installing a fire suppression system requires workers’ compensation insurance to protect against liability if someone is injured. This coverage typically covers medical expenses, rehabilitation costs, and lost wages if an employee is injured while on the job.
Sprinkler contractors often face risks in the field, such as exposure to chemicals, electrical equipment, and physical injury from working with heavy machinery. This specialized coverage is essential to safeguard your company against the financial loss of worker injuries.
Regardless of your property’s location, wildfire damage is a concern. By following simple safety precautions, such as creating a defensible space with fuel breaks and limited debris, you can protect your home and valuables from the effects of a wildfire. You should also have an emergency evacuation plan and know several routes out of your neighborhood if you need to evacuate due to a wildfire. By taking these measures, you can reduce the negative impact of a wildfire on your family and your business.
