How do I get a corporate fire insurance premium cost reduction in California?
In California, fire is one of the most common causes of damage to corporate property. Fire damage is often quite costly to repair, so many companies protect themselves against potential losses by buying fire insurance. The good news in that fire insurance is widely available. But, as fore concerns rise in California, what about the cost? And if you’re paying a bundle for insurance, you might wonder: How do I get a corporate fire insurance premium cost reduction in California?
Friendly or Hostile?
The insurance industry classifies fires as friendly or hostile. A friendly fire is set purposefully and remains in the place intended, such as a stove or fireplace. A hostile fire is one that is uncontrollable or unintentional. Corporate fire insurance protects companies from hostile fire damage.
Need for Coverage
Fires caused billions of dollars in property damage. They may be quite destructive because they generate heat, smoke, and flames. Any of these can damage buildings and anything within them. Additionally, fire-fighting materials like water, powders, and foams can also contribute to property damage. Most commercial property insurance covers damage caused by both fire or fire suppression materials. Many fire insurance policies include some coverage for fees charged by fire departments for fire-fighting services.
A business with no fire insurance will have to pay for repairs and fire service fees out of pocket. If your corporation lacks the financial resources to pay, it may be forced to cease operations. Therefore, purchasing adequate fire insurance can significantly improve your corporation’s chances of surviving a substantial fire loss.
Insurance Premium Reduction
Ways to minimize corporate fire insurance premiums include:
Preventable losses are avoidable losses. Benjamin Franklin was known to have said, “An ounce of prevention is worth a pound of cure.” Notably, he was talking about fire prevention.
Insurance carriers want to insure and offer premium reductions to responsible customers. A fire safety training program or risk management review will help lessen the possibility that you’ll ever need to file a claim in the first place, so your premiums should not be subject to uncontrollable rate hikes.
Improve security precautions
A few measures that can help you get a corporate insurance premium cost reduction are:
- Fire sprinkler systems
- Fire extinguishers
- Security systems
- Worker safety programs
- Employee training programs
If installed and used correctly, portable fire extinguishers are an effective early response to a developing fire. Portable fire extinguishers should be placed and spaced appropriately.
If employees use portable fire extinguishers to fight fires, they must be installed in all workplace areas. To ensure each site is appropriately protected, address the following questions:
- Is the fire extinguisher readily accessible if a fire event arises?
- Is the fire extinguisher inspected, fully charged, and working correctly?
Evaluate your policy annually
It can be tempting to allow a policy renewal to roll over. Reviewing an insurance agreement may not be a high priority. However, it’s in your best interest to sit down and check it methodically and thoroughly. You can also call a PolicySmart professional and ask questions about how adjustments to your business model, changes in your company, or even rate changes can be incorporated into your plan for How do I get a corporate fire insurance premium cost reduction in California?