Every Kansas business should carry commercial fire coverage. It provides much needed protection against fire damage and the expenses it causes. These costs can be incredible, especially in large fires or where people are hurt as well. The personal injury and property damage potential is dangerous if you have no coverage or insufficient policy limits.

At the Saxton Law Firm, we can help you with commercial fire insurance coverage questions and needs. A Kansas City, MO small business litigation lawyer can even help enforce your existing policy rights if an insurance company denies your claim. Let us help you.

business fire insurance

Commercial Fire Insurance Coverage in Kansas

Commercial fire coverage keeps your company protected. A fire is the last thing you want or expect, but they happen all the time. Your business cannot afford to risk not having this coverage or having too little of it. Many businesses buy a generic policy with little consideration to what they really need.

Kansas law does not require businesses to carry fire insurance. Despite this lack of requirement, even responsible business owners should ensure they have it. Having coverage helps protect the business, but it also protects:

  • Your customers and visitors
  • The business owners
  • Employees and independent contractors
  • Business partners, suppliers, and other companies 
  • Your investors
  • The company’s reputation
  • Your revenue and profit

Common Causes of Business Fires

There are many potential causes of a business fire you should consider when picking insurance coverage. These risks could apply to any company, but may be especially relevant to yours. Common causes of business fires include, but are not limited to:

  • Employee negligence and errors
  • Defective electrical equipment or faulty wiring
  • Defective heating equipment or using portable heating units
  • Fires that start in other buildings
  • Combustible or explosive materials on your premises
  • Motor vehicle accidents
  • Arson
  • Smoking
  • Cooking 

Assessing How Much Fire Insurance Coverage You Need

It is easy enough to say you need coverage, but how much do you need to protect your business? There are many types of factors you should consider when making this important decision. 

  • Evaluate Business Risks: Consider the unique nature of your business. Do you work with dangerous and flammable materials more often than other companies? Do you use cooking equipment or other flame-creating devices?
  • Consider Business Assets: Determine the total value of your business assets to analyze how much you need to protect. For example, a small business with less inventory or assets will likely require less coverage than a larger company.
  • Know Your Legal Requirements: Kansas law does not require businesses to carry fire insurance, but regulations within your specific industry might. These requirements could come from state, local, or federal law. They may instead be required by banks with security interests in your property or other interested parties. 
  • Consider Business Interruption Risk: Fire insurance can help cover business interruption, including lost revenue, profits, and the cost of getting restarted. Consider risks like natural disasters, supply chain disruptions, and the time it takes to get replacement equipment that could be destroyed.
  • Know Your Budget: Understand your company’s budget to self-pay for fire damage and potential claims, versus what you would need to get back on track. 
  • Analyze Potential Liability Claims: A fire can lead to costly liability claims and lawsuits. Others damaged by the fire may have a claim against your company, as could anyone physically injured by the fire.

READ MORE: What Type of Insurance Is Needed for Business?

Assess how much fire insurance coverage you need to protect your business. Our experienced attorneys can help you analyze your business risks and enforce your legal rights. Contact Saxton Law Firm for a FREE case review!