In virtually any industry, a fire at an office or major part of the organization can cause profit loss and can even be enough to close a business. In addition to the damage caused by the flames, the soot afterward and the chemicals used to douse the fire can cause additional losses.
How to Protect Your Business From Fire Damage
Before a smoke detector ever sounds at your place of business, there are several things you can do to minimize business fire damage:
- Back up and store as much as possible on secure servers in the cloud. Company documents, files, sensitive data and most anything else you need for day-to-day operations should be digitized and in the cloud. If there is a fire, having everything online reduces your losses and even allows your team to keep working while you rebuild.
- Keep valuables in fire-proof locations. Safes or boxes that are designed to withstand flames can help protect anything that can’t be digitized.
- Consider sprinkler locations. Sprinkler systems can help minimize fire damage by dousing flames early. Unfortunately, they can also cause widespread water damage. Always work with a professional company when setting up your sprinkler system and ask the company how to wire the system to reduce water damage. You might also want to ask how to use the system in a way to reduce water damage of sensitive equipment or machinery.
- After a fire, let the experts do the work. If the worst happens, avoid entering any fire-affected areas yourself, as you may cause additional damage as you walk around. Hire a professional commercial restoration company specializing in fire restoration. If electronics have been affected, do not attempt to turn them on but instead let the fire restoration professionals advise you on the best way to proceed.
Choosing the Right Insurance to Protect Your Business From Fire Damage
A robust commercial property insurance policy and business owners’ policy should protect your organization from damage caused by fire. For fire damage, your insurance will typically pay fire damage based on either replacement cost or actual cash value (ACV). Replacement cost policies will pay for the cost of replacing fire-damaged property with the same or similar items.
ACV policies typically cost less. They cover losses by paying you the actual cash value of the damaged property. This amount is determined by calculating the replacement cost and subtracting the amount of depreciation the damaged property was subject to. This means your business is responsible for paying the difference if you decide to replace what was damaged.
The Upside of Insurance
Gunn-Mowery is an insurance agency, which allows us to find polices and quotes from multiple companies, helping you find the right fit for your budget. We believe there should be an Upside to Insurance, which is why we are a one-stop insurance solution, helping you find a wide range of polices. No matter what your business or industry, we can help you find the peace of mind you need. Since no two companies are the same, our team works to find a personalized solution that speaks to your risks and your concerns. That’s the Upside of Insurance. That’s the Upside of Gunn-Mowery. Contact us today to find out how we can help your business.