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Wildfires in California aren’t just some rare, scary headline—they’re a persistent, fiery reality. Over the past few years, we’ve seen blazes rage from wine country to Southern California, disrupting lives and livelihoods. In 2021 alone, wildfires caused over $10 billion in insured losses nationwide, with California leading the charge in claims. So, let’s cut to the chase: if you’re running a business here, you’ve got to think about wildfire insurance coverage. It’s not just a nice-to-have; it’s essential.

Building Coverage: Protect the Roof Over Your Head (Literally)

First off, let’s talk about your building. Whether you own the storefront, the warehouse, or the office space, building coverage is your first line of defense. Wildfires don’t discriminate—they’ll take out a luxury resort as quickly as a mom-and-pop hardware store.

Let’s say a wildfire sweeps through your area, and your business structure suffers fire or smoke damage (or, worst case, is reduced to ash). Without proper building insurance, you’re staring down repair or rebuilding costs that can easily soar into six or seven figures. For example, the average cost to rebuild after a wildfire hovers around $150-$200 per square foot, depending on location and materials. That’s not chump change.

And here’s a pro tip: check if your policy includes coverage for debris removal. After a fire, clearing out the rubble can cost thousands—an expense you don’t want to shoulder alone.

Premises Rented to You: Even Rented Spaces Need a Safety Net

Maybe you’re not the property owner. No biggie, right? Wrong. If you lease your space, you’re likely responsible for damages caused to it under certain circumstances. Landlords don’t love surprises, and you can bet they’ll come knocking if your rented property gets damaged during a wildfire.

This is where a Premises Rented to You” clause in your general liability policy saves the day. It typically covers damage to the rented space due to fire and sometimes extends to legal fees if your landlord claims negligence.

Here’s the bottom line: landlords care about their bottom line, and without this coverage, you might be footing their bills. Ouch.

Business Personal Property: It’s Not Just About the Building

You’ve invested time, money, and sweat into building your business. What about everything inside? Your inventory, equipment, furniture, and other valuables could also go up in smoke during a wildfire. Business personal property (BPP) insurance has your back here.

Imagine you’re a boutique retailer with $100,000 worth of inventory. A wildfire sweeps through, and you’re left with… well, nothing. Without BPP insurance, replacing that inventory comes out of your pocket.

Even laptops, tools, and decorations are included in most policies. It’s like insuring the “guts” of your business—the stuff that keeps the wheels turning.

Business Interruption Insurance: Because Time is Money

Now, here’s the kicker: wildfires don’t just destroy stuff; they interrupt your ability to make money. That’s where business interruption insurance (BI) steps in.

Let’s say your café in Sonoma has to shut down for two months because of fire damage or evacuation orders. No customers, no sales, no profits. BI insurance helps cover lost income during the downtime, plus extra expenses like renting a temporary space or increased advertising to get customers back in the door.

Fun fact: According to FEMA, nearly 40% of small businesses never reopen after a disaster. BI insurance is like a lifeline, giving you a fighting chance to be in the 60% that bounce back.

Let’s Get You Covered Before the Next Fire Season Hits

Here’s the deal: You work hard to build your dream. Don’t let a wildfire take it all away. At USA Business Insurance, we offer tailored coverage plans for small businesses, covering everything from building damage to business interruptions.

We get it—it’s overwhelming to sort through insurance jargon. That’s why we’ll walk you through it, step by step, to find the best plan for your unique needs.

Sam Meenasian is the Operations Director of USA Business Insurance and an expert in commercial lines insurance products. With over 20 years of experience and knowledge in the commercial insurance industry, Meenasian contributes his level of expertise as a leader and an agent to educate and secure online business insurance for thousands of clients within the Insurance family.