How To Choose the Best Fire Insurance Protection for Your Business

12/30/2019 (Permalink)

Commercial fire damage in Rio Verde, AZ

Fires can be so destructive because even a small fire can cause extensive smoke damage to equipment, inventory and other property. While it may be hard to imagine facing fire damage at your Rio Verde, AZ, place of business, it’s important to protect yourself with adequate property insurance.
Fire coverage is generally part of your basic commercial insurance policy. Choosing the right level of coverage is essential. If you do have a fire, you’ll want to focus on the cleanup and restoration, not on the fear of devastating financial consequences.

3 Levels of Fire Coverage

Three forms of fire coverage are available to business owners. The causes and the types of damage covered vary between the levels.

Basic Form – This most basic level contains a specific, short list of covered perils or causes. Examples of perils covered in a basic commercial insurance policy include fires caused by explosions or lightning.
Broad Form – This level covers everything in the basic form and allows for specifying additional perils and secondary damage provisions. Water damage caused by fighting the fire would be an example of an additional Broad Form provision.
Special Form – This is the most expensive and comprehensive level. The only perils not covered will be specifically noted, and anything not mentioned is considered allowable for coverage.

The Best Choice for Your Business

Ideally, you would have Special Form commercial insurance with few exclusions, but the premium cost can be prohibitive for some businesses. A Broad Form policy may be sufficient if it is designed with your risk in mind.
Your structure’s age, hazardous equipment and the presence of tenants are examples of risk factors. Your insurance agent or local fire restoration specialist can help you assess your risk. Then you might choose a Broad Form policy that includes the perils associated with your risk factors.
“Better safe than sorry,” has never been more apropos than with insurance protection for fire damage. Taking the time to assess your risk and choose the best coverage may help you sleep better, knowing you and your property are protected.