Each year, tens of thousands of nonresidential fires occur across the U.S., resulting in billions of dollars in losses. But the good news? With the right preparation, you can reduce your risk and protect what matters most.
What Causes Most Business Fires?
Knowing the common causes of fires can help you take action before something goes wrong. According to industry data, the leading causes of nonresidential fires include:
- Cooking equipment – 29.3%
- Intentional acts – 10.5%
- Unintentional or careless actions – 9.8%
- Heating systems – 8%
- Open flames – 6.5%
- Electrical malfunctions – 4.9%
Other sources include equipment failure, smoking, and improper storage of flammable materials.
The Cost of a Fire
In just one year, nonresidential fires resulted in:
- 100,500 incidents
- $2.6 billion in direct property damage
- 1,500 civilian injuries
- 70 civilian deaths
These numbers aren’t meant to alarm—they remind us why fire preparedness is so important.
How to Protect Your Business from Fire
As the proverb goes, “An ounce of prevention is worth a pound of cure.” Ultimately, the best way to handle a fire is to prevent it from ever happening. Here are some places you can start implementing preventive measures:
- Fire Safety Education
- Train your team on workplace fire hazards and how to use fire extinguishers
- Review evacuation procedures with employees regularly
- Conduct annual fire drills using real alarms to familiarize everyone with sights and sounds
- Include fire training as part of your onboarding process
- Fire Protection Systems
- Test fire alarms, sprinklers, and suppression systems at least once per year
- Assign maintenance of sprinkler systems to a trained employee or contractor
- Recharge fire extinguishers and inspect them regularly
- Ensure fire doors and shutters are working and unobstructed
- Check evacuation routes daily to make sure they’re clear
- Emergency Preparedness
- Appoint an emergency coordinator and response team
- Create a written fire response plan tailored to your building and operations
- Share this plan with all employees and review it annually
- Keep the premises clean and free of unnecessary clutter or debris
- Implement a preventative maintenance program for building systems and equipment
- Maintain up-to-date contact info for key vendors and clients in a secure, accessible location
Business Interruption Coverage: Keeping You on Track
Even with the best prevention strategies, some fires can’t be avoided. That’s why business interruption insurance is critical to any fire preparedness plan.
Business interruption insurance can help you by:
- Reimbursing lost earnings after a covered event halts your business operation
- Covering ongoing expenses, such as rent or payroll, during downtime
- Pay for temporary relocation or extra costs to get back up and running
Business interruption insurance can be the difference between a temporary setback and a permanent closure.
Take the Next Step Toward Fire Readiness
Fires happen quickly, but your response can be even quicker. With the right training, fire protection systems, and insurance, you can safeguard your people and your business.
Connect with a Leavitt Group Texas Select advisor today to review your coverage and build a fire protection strategy tailored to your organization.
References:
http://www.usfa.fema.gov/data/statistics/#tab-4
http://www.nfpa.org/research/reports-and-statistics/fires-in-the-us/overall-fire-problem/non-residential-structure-fires
https://www.osha.gov/Publications/smallbusiness/small-business.html#fire
http://www.insurancejournal.com/news/southeast/2015/04/07/363458.htm
