Why You Should Purchase Fire Insurance for Your Commercial Building

1/16/2023 (Permalink)

Property fires may be more common than you think they are. In 2017, there were nearly 500,000 structure fires in America alone. These fires caused more than $10 billion in damage. While most of these blazes occurred in homes, they can harm commercial buildings, as well. That is why you need to purchase fire insurance for your business.

The Types of Damage During a Fire

Fire is destructive in multiple ways. They can cause damage via:

• Flames
• Heat
• Smoke
  
  

Most commercial insurance policies will pay for fire damage that results from all of these sources. Insurance can also cover fees charged by fire departments. Any harm that results from fire suppressants, such as fire extinguishers and sprinklers, should be part of your policy, as well.
If you do not have proper fire insurance, you will have to use company profits or assets to cover the cost of fire restoration and smoke cleanup services. Your business could shut down entirely if it cannot afford the remediation. Insurance should thus help your company survive a fire disaster.

The Proper Amount of Insurance

You may be tempted to lower your premium by insuring your property for less than what it is worth. Yet underinsuring your property is almost as bad as failing to insure it at all. For starters, you likely will not have enough coverage to pay for the full cost of the restoration. Your insurer may also impose a penalty if you fail to purchase sufficient insurance.
To make sure you insure your property for its actual value, have an appraiser assess the premises annually. When deciding how much insurance to purchase, use the appraiser's calculations rather than your agent's estimations.
Buying fire insurance is one of the most important things you can do as a business owner. It should give you the funds to keep your company afloat following a blaze.