According to the Insurance Journal, 75% of businesses in the United States are underinsured, and 40% of small business owners remain uninsured.
On most occasions, these businesses find themselves with no insurance to cover their claims when filed with a lawsuit or disaster.
As per The Hartford, the top 5 insurance claims filed in U.S in 2017 based on the claim amount were as follows:
- Reputational harm: $50,000
- Vehicle accident: $45,000
- Fire damage: $35,000
- Product liability: $35,000
- Customer injury or property damage: $30,000
As you can see, fire is a major contributing factor to insurance claims in the U.S.
We have been assisting our potential clients to file commercial insurance claims over five years and we could confirm that Fire has been the most frequent and expensive cause.
This post features a checklist of factors to consider when choosing business insurances and preventive measures while considering commercial fire damage.
Insurance policy selection
Most small businesses struggle when it comes to getting the right advice on fire damage insurance. Fortunately, standard commercial property insurance policies in the United States usually cover fire damages.
While keeping this in mind, consider the following insurance policies to ensure protection from all the possible angles.
Commercial property insurance: With commercial property insurance, you can insure your business in the following two ways:
- Its replacement value: what it would cost to replace everything with new items or
- Its actual cash value: what it would cost to replace everything with used equivalents to what you have now
This insurance type if available at different levels and hence considered budget-friendly.
Business owner’s policy (BOP): This commercial insurance type is deemed budget-friendly as it gives the business owners an option to bundle general liability insurance with property insurance. There are certain criteria that you need to satisfy to be eligible for a Business Owner’s Policy. Risk exposure can be a major factor that can influence your eligibility for the BOP.
Business interruption insurance: This policy is a godsend to business owners who are forced to shut their doors due to fire. The policy can cover the rental of the new office and even the salaries of your employees and other ongoing expenses as long as you are unable to operate.
Fire is an unexpected and unwanted hazard for any business. Make it a point to prepare yourself for this unforeseen hazard by following some basic guidelines. Satisfy the below checklist to keep the concern of fire damage at bay.
- Train your employees to use fire equipments like fire extinguishers and blankets
- Periodical fire system inspection which includes fire extinguisher, fire exits and sprinkler system inspection
- Routine commercial cooking and manufacturing checks
- Electrical equipment inspections and banning risky electrical appliances
Fire damage in Florida is one of the top five causes for commercial insurance claims both while considering the cost and the frequency of the claims. As a business owner ensure that you do the following three things right to minimizing the possibility of damage and maximizing the odds of recovery:
- Choose the right insurance policy/ Get the right advice
- Take necessary precautions
- Document the aftereffects
Need assistance with finding or filing commercial insurance claims? Talk to us today.