What Type of Insurance Protects Against Fire Damage?

Feb 22, 2024

Fire damage can wreak havoc on your business, causing lasting issues in terms of both financial and operational capacities. Fortunately, there are options to protect you in the aftermath of a fire-related emergency. Though you may have heard that fire-related insurance is overblown or otherwise not worth the investment, we’re here to tell you otherwise.

In this blog post, we’ll explore exactly what type of insurance protects a business against fire damage and showcase exactly why your choice here matters. We’ll also let you in on a tip from the security professionals: how to lower your insurance premiums from the start. Let’s dive in.

Types of Insurance for Fire Damage Protection

So, exactly what type of insurance protects a business against fire damage? The reality is that there are multiple relevant options to choose from. Here are a few you should consider looking into:

Commercial Property Insurance

Commercial property insurance is the primary type of coverage to protect your business from fire damage and should probably be your first stop on this list. These policies typically cover things like repair and replacement costs for damaged buildings, equipment, inventory, and other assets that may have been lost to the fire.

Depending on your provider, your plan may also offer coverage for things like relocation expenses, so be sure to read up on the specifics before you sign on the dotted line.

Business Interruption Insurance

Business interruption insurance is often included as part of a commercial property insurance policy, though it may be purchased as a separate policy as well.

This kind of insurance covers businesses for any lost income or ongoing expenses incurred during the period between the fire and the resumption of normal operation. These policies can provide critical buffer room for recovery.

Liability Insurance

Liability insurance is a variety meant to protect your business against legal claims and lawsuits that might arise from property damage or injuries from the fire. While your other policies offer assistance with replacement and recovery, this kind of insurance protects you from having to pay for damage done to entities outside of your own business. 

Why Insurance Matters for Your Business

Despite many of the myths and misconceptions you might hear floating around the business world, insurance is typically well worth the cost, so long as you’ve carefully chosen your policy. 

The reality is that insurance can be a lifesaver — It only takes one emergency to financially cripple you otherwise. Here at PEAK Alarm, we’re all about preparedness and peace of mind. And, while we may not offer insurance ourselves, it’s a crucial part of your safety all the same.

Pro Tip: How to Lower Your Insurance Premiums

Here’s the good news — though we can’t find a customized insurance policy for you, we can help you set yourself up for success before you even start searching. If there’s one dependable way to lower your insurance premiums for things like fire damage protection, it’s by implementing emergency security measures ahead of time.

Insurance companies are businesses too, and so they want to know your business is a reasonable investment. By outfitting your business with fire safety technology and robust emergency alarm systems, you effectively showcase yourself as a safe and smart investment, prompting providers to offer you better prices across the board.

Protect Your Business (And Your Wallet) With PEAK Alarm

Here at PEAK Alarm, safety is the name of our game. We know the importance of protecting your business from threats like fire, and we pursue it every day. Want to learn how comprehensive fire protection from security experts can benefit you?

Get in touch today and discover why countless businesses across the Mountain West trust PEAK alarm with their commercial security.

Protect what matters most to you: Contact PEAK Alarm today.