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The True Cost Of A Fire At Your Business

cost of business fires

As countries across the globe fight some of the most extreme cases of wildfire on record, it would be remiss to overlook your own emergency preparedness in cases of natural disaster or otherwise — both in your personal and professional lives. In the United States alone, there are over 200 fires in places of businesses every day, with causes stemming from human error to faulty wiring. 

If you are a business owner, have you considered the true cost of a fire? And have you put proactive measures in place to counter these costs in the unlikely event that you are required to deal with the aftermath of one? 

Read on for five ways to mitigate the ramifications should your business experience a fire. 

1. Prepare Your Team 

Let’s face it: it is vital to create an emergency response plan, finesse the steps in how you prepare for a safe evacuation, and train team members on the varying facets of an emergency — including how to pivot and adapt to each. The true cost of a fire in your business is undoubtedly an injury to team members, clients, or customers. By creating a watertight evacuation plan and routinely walking team members through it, you are ensuring that everyone knows their role in case of a blaze. 

2. Sidestep Legal Issues 

If it comes to light that your business didn't do everything it could to control the threat of a fire in your place of work, you could be left wide open to legal and financial penalties as a result. 

Don’t take the risk when it comes to proper safety and control. Contact a fire risk assessment agency or your local fire service for guidance and advice. 

3. Update Your Insurance 

Whatever your industry, it is important that you periodically check your policy to ensure that your company still has sufficient coverage. 

You should also keep in mind that investing in new machinery, new vehicles and hiring new team members may require an update to your insurance package. Check with your broker when your operations or assets change to ensure you cover all your bases. 

4. Backup Virtual Assets 

Losing essential paperwork and equipment could be the final straw for a business that’s already struggling. Implementing a policy whereby all paper and digital assets are uploaded to a database or cloud technology is imperative. 

Taking this step means that team members can hit the ground running once new working accommodations have been found. This can not only help you retain team members — there will be a minimal gap in their employment — but it also reduces the potential for lost revenue. 

5. Invest In Protection 

Fire suppression systems are worth serious consideration. Yes, machinery may be damaged during a fire; however, with an adequate system that can temper the flames of a fire and contain them in place, and all at top speed, you are undoubtedly minimizing its effects. 

The Bottom Line On Fire Company Costs

Regrettably, there will be financial loss in the instance of a workplace fires, whether it is lost contracts due to a gap in production, the fees incurred in securing a new brick-and-mortar rental space or even lost custom from a damaged reputation. 

However, by taking the steps highlighted here and consulting professionals for their insight, you are moving toward reducing the financial cost of a fire at your business.