According to the Federal Emergency Management Agency, 65 percent of businesses that experience disaster close their doors within one year of the event. Fire is not a rare occurrence. It’s a genuine threat to your property. Are you taking the proper steps to protect your business from fire?
You can greatly reduce your risk of fire devastating your business by avoiding fire code violations and maintaining proper preventive measures. To keep your business out of the flames, ensure you are:
Following fire code measures such as:
- Ensuring all exits are accessible. Don’t block or lock. These should also be well marked, particularly the paths to exits.
- Having an adequate number of fire extinguishers on hand. Check and service them regularly.
- Limiting the use of extension cords; they’re supposed to be temporary solutions, not permanent installations. They also pose tripping hazards for your workers. Generally, they’re not a great idea.
- Storing flammable liquids and hazardous materials properly or, better yet, getting them off your property entirely, if that’s possible.
And taking preventive measures, including:
- Asking a fire marshal or property manager familiar with fire codes to inspect your property and point out potential hazards as well as ways to increase your fire protection.
- Having and properly maintaining fire extinguishers and smoke detectors and installing a sprinkler system. A sprinkler could save your business; it also will reduce your insurance rates.
- Preparing ahead. Do your employees know what to do in the event of a fire? Regular fire drills ensure everyone will be prepared.
- Posting evacuation routes as part of your fire plan.
- Ensuring first aid kits are available in high-risk locations, such as kitchens. They must be easily accessible and regularly restocked.
You’ll need the right insurance: It’s important to cover not only the damage to your building and machinery, but your loss of business as well.
You’ll need commercial property insurance, which covers structural and equipment damage as well as the cost of rebuilding, and commercial casualty insurance, which covers the loss of revenue while your business is closed. Pay close attention to limits noted in your coverage; you may need umbrella insurance or additional riders to cover specific valuables. Finally, ensure your coverage is sufficient in the event you need to relocate or close temporarily, and as a result, will need to file a business interruption insurance claim.
It’s important to discuss any changes in your commercial insurance with a commercial insurance professional who has experience in your industry. Nothing could be more important to your business’s survival than the right policy with the correct limits that will provide you with the coverage that’s appropriate to your particular situation. A commercial agent who is familiar with the industry, and with your specific circumstances, is best able to advise you on the right coverage. Be sure your company remains in the 35 percent of businesses that can face disaster and survive. Your business depends on it.