Wildfires are no longer just occasional occurrences — experts say that they’re here to stay. According to Insurance Business America, certain states are seeing an increase in the severity and frequency of wildfires. These include California, Nevada, Oregon, and Oklahoma.
However, wildfires can occur anywhere there are heavily forested places. If your company is located in or near one of these areas, you need to take steps to protect your business from the disruptions, damage, and financial losses caused by wildfires. Firearms businesses, due to the nature of their products, are at increased risk.
While wildfires cannot be predicted, but you can plan for them. Read on to learn how commercial property insurance can help you financially protect your company from wildfires.
What to Do Before Wildlife Season Starts
In the past, wildfire season started in May and ended in October. However, there is increasing evidence that wildfire season is lasting longer.
Obtaining commercial property insurance will help you prepare for this prolonged period where wildfire risk is highest.
Commercial property insurance helps cover the costs of damage and loss of your store or building, as well as the items inside it. These include product inventory, furniture, computers, appliances, and equipment. Some policies cover the costs of repairing or replacing property that was stolen. Commercial property insurance provides coverage even if you don’t own the building, you do business in but only lease or rent it.
Depending on the terms of your plan, you might also be able to get business interruption coverage. This is useful when you need to stop operations temporarily due to the threat of a wildfire.
However, keep in mind that not all commercial property insurance policies cover damage and losses caused by wildfire. Some insurance companies consider wildfires as “acts of God.” It means that they won’t cover losses because it’s out of human control. For this reason, it’s critical to do your due diligence and choose a policy that explicitly includes wildfires as some of the perils they cover.
Calculating Commercial Property Insurance Premiums
How much your premiums will cost depends on many variables, including:
Your Building’s Construction
Insurers consider the construction of your building, including the materials used, when calculating your premiums. For instance, a store with exterior walls made of wood or other combustible material may cost more to insure than a building made of concrete and structural steel.
Insurance underwriters will analyze how your business is used. Certain applications and materials used in these applications can increase the risk of combustion. For instance, a small gun shop owner may pay lower firearm business insurance premiums than a gunpowder manufacturer.
Is your firearms business near a fire hydrant or fire station? Does your building have sprinklers, fire alarms, fire doors, and fire extinguishers?
Insurers will factor in these and other public and private fire protection methods when calculating your premiums.
This refers to your building’s proximity to natural or man-made hazards due to its location. A business located in a high-crime area that sees several thunderstorms a year will likely be charged higher premiums than a similar business in a safer neighborhood that enjoys year-round good weather.
Obtaining Commercial Property Insurance for Firearms Businesses
When purchasing commercial property coverage for a business operating in the firearms industry, it’s critical to choose a carrier that understands your unique needs. Not all carriers have a firm grasp of the nuances involved in protecting your type of business from wildfires and other hazards.
Joseph Chiarello & Co., Inc Firearms Business Insurance specializes in providing coverage to firearms businesses throughout the United States. We offer firearm business insurance and commercial property insurance to help mitigate the financial impact of wildfire damage on your company.
We provide coverage to ammunition and bullet manufacturers, manufacturers and importers, shooting ranges, retailers, distributors, and more. For your peace of mind, our program is underwritten by insurance carriers ranked among the best in the world.
Contact us today to learn more about wildfire coverage options for your business.