Fire Risk Is Rising. Is Your Business Ready?
By Linda Buckton and Gina Seitz
For many business owners, fire risk feels like something that happens somewhere else—until it doesn’t.
As temperatures rise in the spring and summer, so does the risk of fire. For businesses handling equipment, fuel, or cleaning chemicals, that risk can increase even further. What starts as a small issue can escalate quickly, leading to serious disruption and financial loss.
For small and mid-sized businesses, a single fire incident isn’t just unexpected; it can be difficult to recover from.
Where Fire Risk Comes From
Fire doesn’t always start the way people expect.
While wildfires often dominate headlines, many business-related fires begin internally. Common causes include:
- Electrical faults or overloaded systems
- Equipment overheating or poor maintenance
- Improper storage of flammable materials
- Human error, including unattended equipment
External risks also play a role. Fires from nearby properties or wildfires can spread quickly, especially during dry conditions.
The Real Impact of a Fire
The damage caused by fire goes far beyond what’s visible.
In addition to property damage, businesses may face:
- Temporary or long-term closure
- Lost income during downtime
- Damage to equipment, inventory, and records
- Cleanup costs, including smoke and water damage
- Disruption to staff and customer relationships
Even a smaller fire can result in weeks – or months—of interruption.
Why Preparation Matters
Fires move quickly, often leaving little time to react. Having a plan in place can make a meaningful difference.
Prepared businesses are better positioned to:
- Reduce the likelihood of a fire starting
- Respond more effectively in an emergency
- Recover faster with less financial impact
Preparation doesn’t need to be complex, but it does need to be intentional.
Practical Ways to Reduce Fire Risk
While no business can eliminate fire risk entirely, a few practical steps can go a long way.
Maintain equipment and electrical systems
Regular inspections can help prevent overheating, faults, and failures that could lead to fire.
Store materials safely
Flammable products should be clearly labeled and stored away from heat sources or high-risk areas.
Keep spaces clear
Clutter can fuel fires and block exits. Organized workspaces support both prevention and safe evacuation.
Install and maintain fire protection systems
Smoke detectors, extinguishers, and sprinkler systems should be tested regularly to ensure they work when needed.
Train employees
Staff should understand fire safety basics, including exit locations and how to respond in an emergency.
Planning for the Unexpected
Even with strong prevention measures, fires can still occur. A clear emergency plan helps ensure employees know what to do when it matters most.
This may include:
- Evacuation procedures and designated meeting points
- Emergency contact lists
- Assigned roles and responsibilities
- A plan for communicating with staff and customers
Practicing these steps periodically can reduce confusion and improve response time.
The Role of Insurance
Fire-related losses can be significant, but insurance can play an important role in recovery. Commercial property insurance may help cover damage to buildings, equipment, and inventory, while business interruption coverage may help offset lost income during downtime.
However, not all coverage is the same. Limits, deductibles, and sub-limits can affect how much is recoverable after a loss. As operations change, it’s worth reviewing coverage to ensure it still reflects current risks.
A quick annual check-in with your broker can help identify gaps before they become costly.
Staying Ahead of the Season
As spring turns to summer, fire risk becomes more relevant for many businesses. Taking time now to review safety practices, update emergency plans, and assess coverage can make a meaningful difference.
A few proactive steps today can help protect your business, your employees, and your operations when it matters most.
Linda Buckton
Vice President,
Client Executive
T: 403-451-4147
lbuckton@bflcanada.ca
Gina Seitz
Vice President,
Client Executive
T: 604-678-5419
gseitz@bflcanada.ca
