Preventative Measures Against Business Interruption Loss

Damage of any kind to our belongings, at home or at our place of business, puts us in emotional turmoil as we are forced to deal with the aftermath. When a business has sustained fire loss, there is more risk involved because you must assess the damage by temporarily ceasing operations and moving to a transitory location. These actions and the loss of inventory could result in your business’ permanent closure. Business interruption loss is frequently caused by fires and explosions incited by human error or technical issues.

In other words, BI loss is often avoidable. But the good news is: there are several ways to prevent BI loss.

Establish Housekeeping Habits

Practicing good housekeeping on a daily basis reduces the chances of something going wrong. A simple change in where combustibles are stored can make all the difference; after all, fire spreads and destroys in the blink of an eye, so why help it? Letting dust and dirt accumulate on electrical equipment is another way to provoke a fire. In the same spirit, clearly label cabinets and products—especially flammable and combustible products—to allow your staff the opportunity to exercise caution and implement the proper procedures for handling them.

Inspect Hot Work Areas and Equipment

If your business does cutting, welding, grinding or brazing, then it is important that your staff take extra care in carrying out their tasks because these activities are common causes of workplace fires. In addition to routinely inspecting the equipment before and after its use, always inspect the work area for potential hazards and ensure that a fire extinguisher is present in case of an emergency. Go the extra mile and have a fire watch stationed during and after any hot work so you can be certain that a fire won’t start.

Prioritize Preventative Maintenance

Schedule routine inspections of your facility with a licensed electrician. This is the opportune time to investigate electrical panels and improper use of extension cords. You should also check for signs of visible electrical deficiencies, missing ground prongs, and electrical tape repairs. At the same time, why not inspect your emergency sprinkler system and other fire protection equipment? After the inspection, make sure to immediately deal with the issues found so you can avoid, or at least be properly equipped to handle, a workplace fire.

Draft Emergency Response Plans

In order to facilitate communication if a fire starts, it’s important to have your staff already prepared. Draw up emergency response plans and have everyone go through regular drills to keep the procedure fresh in their minds. As a result, corridors should be kept clear and exits must be legible for your staff’s safety.

If your insurance company denies your business interruption or fire loss claim, the lawyers at MacGillivray Injury and Insurance Law are well equipped to handle the situation for you. We believe you should be able to recover from property damage, so contact us today by phone or online.

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