How businesses can minimize their wildfire risk, from Allianz and I.I.I.
AGCS and I.I.I. have teamed up to provide businesses with risk mitigation practices to safeguard their establishments.
In the midst of the hottest, driest months of the 2019 wildfire season, the risk for businesses and properties in wildfire-prone states is at its peak.
According to FEMA, more than 40% of U.S. small businesses do not reopen after a natural disaster, including a wildfire. Worse, among those that do reopen, 25% close their doors over the following two years.
To help protect commercial insureds from suffering this fate, Allianz Global Corporate & Specialty (AGCS) has teamed up with the Insurance Information Institute (I.I.I.) to provide businesses with risk mitigation practices to safeguard their establishments, help reduce the frequency and severity of wildfires, and minimize their subsequent effects on businesses big and small.
Scott Steinmetz, global head of risk control, MidCorp at AGCS is working on the I.I.I. partnership to bring risk mitigation techniques and solutions to at-risk businesses.
“Preventative measures and foresight are some of the greatest demonstrations of quality operations and risk management aptitude,” Steinmetz said, “and likely result in managing a business’s total cost of risk to a lower price point with more resilient ongoing operations.”
Loss risks for businesses
Some of the direct and devastating impacts from the effects of wildfires on businesses include:
- Property loss: Businesses that own buildings in the path of a wildfire are impacted. Even if the property is rented, a business’s physical location will be disrupted when faced with either an evacuation or a move to a new venue.
- Equipment loss: Any equipment within a wildfire’s reach is at risk.
- Vulnerable industries: Agriculture, destination wineries, ranching and forestry could have their entire livelihoods threatened by wildfires.
- Business interruption/contingent interruption/supply chain: Whether a business is in a wildfire-prone area or relies on vendors, or has suppliers or customers who are, any fire should be considered a threat to its operations.
As part of their partnership, AGCS and I.I.I. have put forth a number of risk mitigation steps for business owners to follow in order to safeguard employees and property from a wildfire.
Wildfire risk mitigation tactics for businesses
Creating a defensible space is one of the most consequential measures businesses can take to protect their property, creating crucial protection against wildfire. To do this, AGCS and I.I.I. instruct business owners to establish and maintain a 5-foot “no-burn zone” around every business’s property so that nothing can ignite.
Ensure to clear brush and relocate flammable materials away from combustible construction materials. When examining the property, especially within the immediate 5-foot zone of a building structure, take note of any shrubbery or other potentially problematic, flammable materials near windows, gutters or vents. Lose-flying embers can multiply the magnitude of fire damage if gutters aren’t cleaned, or if they travel into the building through ventilation systems.
This is where wildfire-resistant building materials could make the difference between a small claim and a total loss. Consider different buying options for fire-resistant vents or other materials.
Another option would be to apply fire-fighting foam (both pretreatment and suppression) around a business’s property or on combustible building materials. A third wildfire technology for consumers to consider is wildfire foam spraying systems. These systems mount to a home or business, and will dispense a biodegradable foam to help stop the fire from spreading and put out airborne embers.
More insight on wildfire risk mitigation tactics from AGCS and I.I.I. can be found online.
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