Wildfires are no longer just a regional concern—they’ve become a national issue, impacting businesses across 38 states in the U.S. With hotter summers, longer droughts, and unpredictable weather patterns, the threat of fire damage is increasing. For business owners, preparation is key not only to protect physical assets but also to ensure continuity, financial stability, and employee safety.
Understanding the Risks
According to the National Interagency Fire Center, the U.S. experiences more than 42,000 wildfires each year, burning millions of acres of land. Even if your company isn’t directly in a high-risk wildfire zone, the ripple effects—such as smoke damage, disrupted supply chains, or mandatory evacuations—can significantly affect your operations.
How Wildfires Affect Businesses
- Property Damage: Flames, smoke, and extreme heat can cause direct harm to buildings, equipment, and vehicles. Even when structures survive, they may require costly repairs.
- Business Interruption: Evacuations or temporary closures can halt operations, leading to lost income and additional expenses to restart.
- Financial Strain: Disrupted operations often mean cash flow challenges. Increased insurance premiums and repair costs can strain profitability.
- Employee & Customer Safety: Wildfires present serious health and safety risks, from poor air quality to hazardous evacuations. Keeping people safe must be a top priority.
Steps to Prepare Your Business
- Develop an Emergency Plan – Create clear evacuation routes, communication protocols, and safety responsibilities for staff.
- Safeguard Property – Install fire-resistant materials, maintain defensible space around buildings, and keep fire extinguishers readily available.
- Review Insurance Coverage – Make sure your policy includes wildfire protection, business interruption insurance, and coverage for replacement costs of damaged assets.
- Protect Data and Operations – Back up digital files, secure critical records off-site or in the cloud, and prepare for remote operations if facilities are inaccessible.
- Stay Informed – Monitor wildfire alerts from local authorities and agencies, and sign up for real-time notifications.
Why Insurance Matters
Wildfire losses in the U.S. are estimated at $394 billion to $893 billion each year. The right insurance coverage can help offset these enormous costs, giving businesses the resources to recover. From property damage to income replacement, insurance ensures you have a safety net in place when the unexpected happens.