Almost every business has physical assets, and as a business owner, it is your responsibility to keep them protected against fire damage. This is because a fire incident not just damages your assets, but may also interrupt your business operations during repairs or renovations. This is where commercial property fire coverage can come to your rescue, saving your property and finances simultaneously.
What Is Covered by Commercial Property Fire Coverage?
Commercial property fire coverage will cover your:
- Commercial buildings and their contents against a loss or damage resulting from a fire accident, covering their repair and replacement costs.
- Loss of income and other expenses (rents, loans, and employee wages) incurred while your commercial building is being repaired after a fire incident.
Based on your business-specific risks and requirements, you can customize your property coverage with additional endorsements for comprehensive protection.
How to Lower the Cost of Commercial Property Fire Coverage?
Installing a sprinkler alarm system can help reduce your premiums for fire coverage by 10% to 60%, depending on your policy type and provider. If you want to make the most of the discount, ensure that your sprinkler alarm system is reviewed regularly. Otherwise, you may receive partial to no credit, despite having a sprinkler system. You can request the Insurance Services Office (ISO) to inspect your workplace to assess your fire sprinkler system. The ISO will develop an accurate credit on your fire insurance, reducing your overhead costs and premiums.
How Does ISO Review the Fire Sprinkler System?
The ISO examines the following areas to evaluate the fire sprinkler system’s efficiency and performance:
- System design to check whether it meets the requirements of occupancy
- System installation and components
- Adequate water supply in the facility
- System functioning
- Reviewing the areas without fire sprinklers
- Building conditions to determine whether they could impact sprinkler operation
What Tests and Certifications Are Important to Receive an ISO Credit?
To be eligible for an ISO credit, you should complete the following tests:
- Main drain test
- Dry pipe trip test (recommended only for systems with dry pipe valves)
- Fire pump performance test (for systems with fire pumps)
Besides, you should:
- Possess a copy of the Overhead and Underground Piping Hydraulic Test Certificate.
- Have completed the system design criteria evaluation by reviewing the sprinkler plans, hydraulic data plaque information, or hydraulic calculations.
No matter how well-prepared, you cannot always prevent fire accidents and related damages. Unexpected fire incidents can destruct or damage your property, leaving you financially liable. However, with the right commercial property fire coverage, you can ensure all-around protection against every fire incident. So, without having to worry about property loss/damage, you can operate your business with peace of mind.
Protect Your Commercial Property with J Archer Insurance
At J. Archer Insurance Group, we are committed to seeing your business grow beyond risks and liabilities. That’s why we offer best-in-class commercial property insurance that protects your business property against various perils, including fire. Contact our insurance professionals today to find the right coverage that ensures the highest possible protection against fire and other potential risks.
