Fire is a risk with any structure, and you may face a higher risk because of the nature of your business and the materials and equipment you use. If you have planned how your company will handle an emergency, now’s the time to put it into action. If you have no such plan, you’ll learn the value of having one as a business partnership lawyer can explain.
Nonresidential Structure Fires By The Numbers
From 2004 to 2013 in the US, nonresidential building fires resulted in the following:
- 65 deaths
- 1,425 people injured
- $2,461,400,000 in damage
In that time frame, according to Encore Fire Protection, these were the most common causes of nonresidential structure fires:
- Cooking Fires: 29.3% were cooking-related, with a quarter of office building fires starting with cooking equipment
- Arson: Nearly 10% of fires were intentionally set, and they caused the most damage, killed and injured the most people. They’re most likely to start between 3:00 pm and midnight. They often begin in bathrooms, trash bins, garages, and open areas like a field or lawn
- Carelessness: An estimated 9.2% of commercial fires were caused by careless mistakes. This could include leaving space heaters or heat-producing equipment on and unattended, overuse of electrical outlets, or improper disposal of lit cigarette butts
- Heating Systems: They started 9% of nonresidential building fires. All heat sources, whether space heaters or central heating systems, should be regularly inspected and repaired as needed. Flammable materials should be kept away from them
If you prioritize fire prevention, you can reduce the chances of coping with the aftermath of a fire.
Contact Your Insurance Carrier
Whether you own or lease your property, you should have fire and business interruption insurance as our friends at Focus Law LA would recommend. If you don’t, depending on the extent of the damage, you may put yourself in a tough situation. If you have the resources, you can pay for your losses out-of-pocket, then potentially sue who’s responsible to recoup your losses. This would be a risky strategy that could take years to resolve.
If you have coverage, contact your insurance provider as soon as possible. Document the damage with photos and videos. Create a list of damaged and destroyed property. Keep detailed records and receipts of all your fire-related spending. The better your claim is documented, the more likely your claim will be successful.
As you can see, arson is a frequent cause of commercial fires. Don’t be upset if the insurance investigators or the local fire marshall ask you questions about your activities or potential motives for you to burn your own business. They’re just doing their jobs.
Limit The Harm
A coverage requirement is actively limiting the damage you suffer. That may mean putting equipment or property in storage so it’s not exposed to the elements or stolen. You may need to board up windows and doors, make temporary roof repairs, get back to business, and earn an income as quickly as possible. This may mean using just a part of your location or finding a temporary one until you’re fully back on your feet.
Assess The Damage
Get estimates for repairs and cleaning up. You’ll probably deal with damage directly caused by the fire, smoke, and water damage done by sprinklers and your local fire department. Every part of your business should be examined to discover potentially hidden damage. Contact potential contractors and get quotes for repairs and replacements.
Notify Important Stakeholders
Communication is critical during a crisis. Contact employees, suppliers, clients, your bank, and investors. Honestly inform them of the situation and provide updates. Let them know what you can and cannot do, give them your new location (if you have one), and when you expect things will return to normal (or close to it). Your supporters will want you to succeed, and you may rally more support than anticipated. Everyone loves a comeback story.
If your business is damaged or destroyed by a fire, contact your attorney to discuss insurance claims and what you’ll need to do to make the most of them.