Fires remain one of the most costly and disruptive events a business can face. While you can’t always prevent every incident, there are important steps you can take to minimize risk, reduce financial impact, and ensure your business recovers quickly.
Step One: Build Your Post-Fire Loss Contact List
A fire emergency is not the time to scramble for contact information. Create a clear and accessible list that includes all necessary contacts and information to keep things as simple as possible in a time of crisis.
Recommended Post-Fire Information List:
- Insurance Agency Contact Information
Save contact information for your agency, and make sure your insurance agency has the best and most accurate contact information for you and your business. - Policy Information
Make sure you have your policy number(s), phone number for your carrier’s claims department, and keep a copy of your policy in a safe location off-site or save it electronically to a Cloud system. - Assign a Dedicated Contact to Handle Communication Between Involved Parties During Claims Process
It will be imperative to have a clear path of communication between you and the numerous parties that will be involved in the claims process, like adjusters, inspectors, contractors, and remediation teams. Assign someone in your business to handle all communications and scheduling of appointments.
Keep this list in multiple formats: printed copies in secure but accessible areas, and digital versions stored in cloud-based systems. Provide management and responsible employees with updated copies regularly.
Step Two: Review Your Commercial Property Insurance Coverage
When was the last time you reviewed your policy with your Pennsylvania insurance agent? Fire coverage is typically included in commercial property insurance, but gaps may exist depending on how your policy is structured.
Commercial Insurance Policy Review Checklist:
- Is your policy comprehensive enough for your business needs?
Does it cover fire, smoke, and explosion damage? Discuss covered losses with your trusted Spotts Insurance agent. - Do your coverage limits reflect current building and equipment replacement values?
Rising construction and material costs can leave you underinsured if your policy hasn’t been updated recently. If it’s been a few years since you last reviewed your policy, schedule a review to make sure your policy has any needed endorsements or adjustments. - Is your policy written as Replacement Cost or Actual Cash Value?
- Replacement Cost provides full rebuilding or replacement value.
- Actual Cash Value subtracts depreciation, offering less financial recovery.
Know what your business insurance policy covers and what Loss Settlement option you may have.
- Does your policy include Business Interruption coverage?
Business Interruption insurance may cover lost income, temporary relocation, rent, utilities, and employee wages during the recovery period.
Action Step: Schedule an annual insurance policy review to ensure your coverage matches your business’ current risk exposure and asset value.
Step Three: Explore Eligibility for Safety Upgrade Discounts
Your fire prevention efforts can lead to cost savings on your premiums. Your commercial insurance policies may offer premium credits for qualified safety upgrades.
Potential Credits May Apply to:
- Fire and smoke alarm systems
- Monitored alarm services
- Sprinkler systems and fire suppression equipment
- Deadbolt locks and reinforced entryways
- Fire-rated doors and materials
Pro Tip: Ask your insurance agent to provide a list of possible safety discounts available for your policies in Pennsylvania to optimize savings and value. Help us help you!
Step Four: Consider Advanced Fire Detection Technologies
Modern fire detection systems can identify threats earlier and more accurately than ever before. These upgrades can help prevent catastrophic losses and may support reduced premiums.
Recommended Technologies:
- Thermal Imaging Cameras: Detect overheating or potential fire risks in electrical panels, HVAC units, and machinery before ignition occurs.
- Smart Smoke Detectors: Integrated with wireless monitoring systems for real-time alerts and remote access.
- AI and Smart Sensors: Analyze environmental conditions and alert to anomalies such as gas leaks, electrical surges, or heat buildup.
These technologies are particularly valuable for manufacturing, warehousing, food processing, and other high-risk commercial environments.
Step Five: Conduct a Fire Risk Assessment and Ongoing Safety Inspections
A documented, proactive approach to fire safety isn’t just smart — it may be required by your insurer or local fire code. Here’s what your fire risk assessment should include:
Fire Risk and Safety Checklist:
- Are all fire detection and alarm systems tested monthly, with inspection logs maintained?
- Are sprinkler systems, fire extinguishers, and suppression systems serviced per NFPA or local fire code?
- Are all electrical systems inspected regularly for frayed wiring, outdated panels, and potential overloads?
- Are exit routes and emergency lighting clearly marked, accessible, and unobstructed?
- Do you conduct fire safety training for staff and maintain an updated evacuation plan?
Tip: Document all fire safety training and inspections. This documentation may support future insurance claims and help prove compliance.
Step Six: Prepare for Recovery Now — Not After a Loss
Waiting until a fire happens to understand your policy or response plan can lead to delays, denials, or devastating financial consequences. Preparing now helps you recover faster and with fewer complications.
Let’s Get Started — Fire Safety Begins with a Conversation
As National Fire Prevention Month continues this October, take the opportunity to revisit your insurance strategy and loss prevention measures. We're here to help you:
- Review or update your policy
- Conduct a fire risk assessment
- Identify premium-saving safety upgrades
- Create or update your post-fire contact list
- Ensure your business is adequately covered for property damage and business interruption
Contact Spotts Insurance Group today to schedule a commercial insurance review.
