Lightning-related fires behind as much as 5% of commercial property claims

Fires started by lightning strikes are the cause of 3%-5% of all U.S. commercial property insurance claims, according to research from the Insurance Information Institute (Triple-I) and the Lightning Protection Institute.

Cumulatively, lightning-related fires account for $2 billion in annual payouts to small- and medium-sized businesses.

Further, 40% of small businesses do not reopen after a natural disaster and 25% fail within a year, according to the U.S. Small Business Administration.

Sean Kevelighan, Triple-I CEO, noted commercial insureds should take advantage of tools that help predict and prevent losses caused by lightning strikes, adding in a release: “Business owners, by their very nature, are risk takers. That’s how they became so successful. But smart entrepreneurs also recognize insurance and risk mitigation are essential elements to an overall business plan.”

To that end, Triple-I recommends businesses take the following steps:

1. Install a certified lightning protection system: These systems provide a specified path to harness and safely ground the super-charged current of a lightning bolt. Properly installed lightning protection systems include utilizing a certified lightning protection contractor and a third-party inspection program.
2. Secure surge protection: Proper selection and installation of surge protection devices can protect electronic systems and equipment from lightning and other surges. However, surge protection alone does not protect against the damage of a direct lightning strike.
3. Property insurance: Pays to repair or replace stolen, lost, or damaged business property. It covers your business’s structure and other assets on its premises, like equipment.
4. Consider business interruption coverage: If a business is forced to close temporarily due to direct physical damage to your property from a covered cause of loss, such as a fire or a windstorm, business interruption insurance can help replace lost net income during the period of restoration and pay for continuing normal operating expenses. Utility services interruption coverage is also available as an endorsement and covers a business in the event there is a disruption in electric, gas or water service.

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