Fires can cause serious damage to a business—even if the building isn’t totally destroyed. From smoke and soot to water used to fight the fire, the damage can add up fast. In this blog, we’ll explain how commercial insurance can help, what types of coverage exist, and how to file a claim if your business is affected by a fire.
How Fire Can Damage a Business
Fires are one of the most common causes of damage to commercial buildings. According to the National Fire Protection Association (NFPA), U.S. fire departments responded to about 1.39 million fires in 2023, which caused $23 billion in damage. Damage can come from flames, smoke, soot, and even the water and foam used to put the fire out.
Even if the fire is small, recovery can be slow and expensive. Sometimes, a business has to shut down even if the building is still standing. If there’s no insurance coverage, owners may be left to pay for everything out of pocket.
Friendly vs. Hostile Fires
Insurance companies look at whether a fire was friendly or hostile. A friendly fire is one that was meant to happen, like in a fireplace or stove. A hostile fire is one that spreads out of control, like a wildfire or accidental kitchen fire.
Commercial property insurance usually covers hostile fire damage.
Types of Commercial Insurance That Cover Fire Damage
Most commercial property insurance policies cover fire damage, but other types of insurance may also be needed to cover everything. These policies help protect not just the building, but your equipment, records, and income. Below are the main types of fire-related coverage businesses should know about.
Commercial Fire Insurance
Commercial fire insurance covers damage to the building, equipment, and even customer property. It can also protect outdoor items like signs, fences, and landscaping. If you lease space, you may still be required to carry fire coverage under your rental agreement.
This policy usually protects things like tools, computers, office furniture, and stored inventory. If you rent equipment, you may be required to insure it while in your care. Some high-value documents may need extra coverage.
General Liability Insurance
General liability covers common risks like injuries and certain property damage. If a fire at your business hurts someone or damages customer property, this policy can help pay for it. It may also cover medical treatment for fire-related injuries on-site.
Commercial Auto Insurance
If your business owns vehicles, you must have commercial auto insurance. It covers fire damage to business-owned vehicles. Comprehensive auto coverage also helps with fire, theft, and water damage.
Business Interruption Insurance
Business interruption insurance helps if your business has to close because of a fire. It can be added to your commercial property policy as extra protection. This coverage pays for the costs that continue even when your business can’t operate.
It can help cover things like:
- Rent payments
- Employee salaries
- Relocation costs
- Loss of business income
- Debt payments
This type of coverage can keep your business afloat during hard times.
Smoke Damage Is Often Worse Than You Think
Smoke is made up of toxic particles that spread quickly through a building. It can get into walls, ductwork, drawers, and closed-off spaces. Even areas not touched by flames can still be heavily damaged by smoke.
Smoke often rises and spreads toward ceilings, affecting walls, vents, and openings. Cold air also pushes it downward, reaching unexpected parts of the building. This is why smoke damage can be found far from the fire itself.
Furniture, electronics, and other items can absorb smoke even if not burned. Enclosed spaces like drawers or closets can trap smoke and become more damaged. These areas may suffer worse damage than the parts directly touched by flames.
The real damage from a fire is often in the smoke left behind.
Smoke Particle Ionization
Smoke particles often carry an electric charge that makes them stick to certain surfaces. This can cause unusual damage in places that weren’t even touched by fire. Some items and materials attract these particles more than others.
Common examples include:
- Nail heads in the ceiling: Metal can attract charged smoke particles, leaving dark rings around each nail.
- Corners of the room or building: Smoke from burning plastics carries a stronger charge and often settles in corners, creating “webs.”
- On synthetic materials: Manmade items like vinyl can attract so much smoke that they become permanently stained.
These hidden smoke effects can lead to lasting damage, even in untouched areas.
How to Prevent Fire Damage Before It Starts
The best way to protect your business is to lower the risk of fire in the first place. Having insurance is important, but taking action to prevent a fire can save money and lives. Simple steps can make a big difference.
Here are smart ways to reduce fire risk:
- Regularly check fire extinguishers and fire blankets
- Install sprinklers and working smoke alarms
- Train staff on safety procedures
- Store flammable items safely
- Keep exits clear and labeled
- Unplug space heaters and appliances when not in use
- Maintain clean landscaping around the building
Being prepared today can keep your business safe tomorrow.
Filing a Commercial Fire Damage Insurance Claim
Fires can happen at any type of business—from restaurants to tech companies. If the fire is serious, it could force a business to shut down for good. This is why having commercial property insurance is so important.
Once a claim is filed, the insurance company may send a form or an adjuster. The adjuster will inspect the damage and report their findings. However, insurers may still delay, deny, or underpay valid fire damage claims.
If you document everything clearly and file properly, it helps the claim move forward. Make sure to take photos, save receipts, and report the damage right away. Doing these things early can help you get the money you need.
Commercial Property Insurance Claim Attorneys
Fires can cause huge losses and emotional stress for business owners, and insurance claims after a fire can be complicated. Even with the right policy, insurance companies may try to delay, reduce, or deny your claim. At Raizner Slania, our experienced commercial fire damage attorneys know these tactics and will fight to get you the compensation you deserve. If you need help with your fire damage claim, contact us to protect your rights and support your recovery.