During the summer months, businesses near the Gulf Coast have an added concern about property damages caused by hurricane, tropical storms, flash flooding, and windstorms and tornadoes. However, most businesses are ill prepared for one of the most common and costliest types of commercial property damage, which is fire. The average cost of a fire to a small business is over $35,000, which many small businesses would be unable to pay for out of pocket. In part two of our series on Commercial Fire Damages, we look at what steps businesses can take to better prepare in the event of a fire to ensure a quick and full recovery.

Quality Commercial Insurance Coverage

The most important way businesses can protect their companies from fire damage losses is to have quality, comprehensive commercial insurance coverage in place before disaster strikes. Companies should have Commercial Property Insurance, which is commercial insurance coverage for building structures, outdoor signage, and company property. This includes equipment, tools, raw materials, inventory, appliances, computer systems, furniture, and other assets. Protecting the value of company assets can help businesses quickly repair or replace the tools necessary to begin the recovery process and reopen their business. In addition, businesses should also have General Liability and Excess Liability in case customers are hurt, Workers Compensation coverage for injured employees, and also Loss of Business Income coverage, which helps companies cover continuing expenses after a fire, such as rent, taxes, utilities, and payroll.

Develop Fire Safety Programs

Another key step in protecting businesses from fire damage losses is to ensure employees know what to do in the event of a fire. Prepared and well-trained employees can better protect themselves and can also quickly alert first responders to make sure the fire is put out as quickly as possible. Business owners should develop thorough fire safety programs with evacuation routes, schedules for fire extinguisher testing, and regular safety drills for all employees. This ensures employees can safely and promptly exit the premises in the event of a fire or other serious event, reducing potential employee and customer injuries as well as Workers Compensation and General Liability claims.

Securely Store Files Offsite

Finally, the process of protecting companies from fire damage losses should include a plan for securely storing valuable digital records offsite. Companies should have recent backups of emails, company files, financial records, and other sensitive data stored with off-site, cloud-based storage companies to ensure no loss of data or files in the event of a fire. This allows companies to restore functionality faster, particularly those with internet-based businesses or valuable files that cannot easily be recovered or recreated.

Fires can be absolutely devastating to any business, but these small proactive steps can help minimize losses and ensure that companies damaged by fire not only reopen, but also thrive even after fire damage. Aegis Insurance & Financial Services is committed to helping small and medium sized businesses get the quality commercial insurance coverage needed before disaster strikes, all at competitive rates. The friendly and knowledgeable team at Aegis can help you with all your commercial insurance needs, including Business Owners Policies, Commercial Property coverage, Commercial Auto, General Liability, Business Interruption Insurance, Workers Compensation, and Excess Liability. Call Aegis today at 713-850-7622 for more information, or go online to request a free quote.