Fire insurance is critical protection for your business. A fire can do devastating harm to your premises, inventory, or even your employees. It happens unexpectedly and without any warning. Insurance helps mitigate the financial risks you face and grants you peace of mind. The question is: is it required? Fire insurance is not required, but it is highly recommended.
At the Saxton Law Firm, our skilled business insurance lawyers are here to help. A Kansas City, MO small business litigation lawyer can consider your risks, advise on insurance needs, and help you handle any litigation issues dealing with your insurance company.
What Is Business Fire Insurance?
Fire insurance for your business is a key component of protecting your company. Commercial fire coverage helps protect against expenses associated with a fire and the damage it causes. You purchase a policy from an insurance company and they in turn promise to pay for any fire damage subject to applicable policy limits.
Fire insurance helps pay for fire-related expenses such as, but not limited to:
- Damage to your building and premises
- Damaged or destroyed inventory
- Smoke damage
- Destruction of electronics, appliances, and fixtures
- Burns and other personal injury to customers or employees
- Lost business revenue
- Costs to repair building and reopen
Ultimately, what is covered depends on your individual policy. A small business insurance attorney can examine your fire insurance policy to ensure you get the full measure of what you are owed.
Does Kansas Require Businesses to Carry Fire Insurance?
Kansas does not require businesses to carry fire insurance. The only insurance it requires of most small businesses is workers’ compensation coverage.
Kansas does require certain insurance loss reporting information after a fire. Property and Casualty insurance companies that transact business in the state must report fire-related losses and coverage on a Kansas Insurance Loss Report for each fire loss above $500. However, this burden is placed on the insurance company, not your business.
Should I Carry Commercial Fire Insurance Anyway?
Yes, you should carry commercial fire insurance even though it is not required by law. A fire can completely derail your company’s business and operations. A small fire may cause minor disruptions while a major fire could result in significant losses. Without insurance, you will have to cover these costs on your own.
Companies that fail to protect themselves often find themselves in dire financial straits after a fire. The cost of property damage, lost inventory, and physical injuries to persons can quickly accumulate. An injured employee likely has rights under the workers’ compensation system, but an injured visitor or customer could have a personal injury claim against your company. Fire insurance should help protect against this as well.
What If My Insurer Denies a Fire Insurance Claim?
Even responsible business owners who have insurance sometimes learn the hard way that insurance companies do not play fair. You may have all the coverage you need, yet your insurance company refuses to pay. Insurance companies often deny coverage for hyper-technical reasons or in an attempt to simply save money on claim payouts.
If this happens to you and your business, you have legal recourse. A qualified fire insurance attorney will examine your policy, determine your rights, and enforce them. An attorney can help you take steps such as:
- Investigating your claim and ascertaining your policy rights
- Filing a formal demand letter with the insurance company
- Helping comply with insurance reporting and evidentiary requirements
- Settling a claim
- Filing a lawsuit if the insurance company refuses to pay your claim
READ MORE: What Happens If Insurance Doesn’t Want to Settle?
While fire insurance is not legally required, it is something you want and need. Whether you need help assessing your current needs, or require assistance enforcing your existing policy, we are here to help. Our dedicated business insurance litigation attorneys have what it takes to represent your legal rights. Contact Saxton Law Firm for a FREE case review!