Wildfires in California have been a growing problem for the last few years. The fact that they burn thousands of acres at a time and threaten homes and businesses has become a notable risk of doing business in some parts of the state. More small businesses are realizing that the threat of wildfires should be taken seriously as part of their risk mitigation strategy.
What can fire damage do?
The most obvious risk from fire damage is that it can burn down the only location of a small business. However, even if the fire itself does not affect the business’s location, there can still be an impact. A nearby fire will lead to evacuations, poor air quality and breakdowns in logistics networks. All of that cuts into local traffic and demand as well as deliveries, services and other necessities.
It is not a good idea to ignore the risks from fire damage as a small business, including the legal process of filing claims and recovering if you do suffer an impact from fire. It’s a growing concern for California business owners that is becoming more important each wildfire season.
Preparing for risks
Even a distant fire can have these effects depending on the size, location and wind direction. As a result, small businesses based in cities that have very little chance of being directly impacted by fire still need to make plans for how to manage fire risk.
Each year, fires tend to become larger and more intense. Since they are generally started by lightning strikes or by human error, it is hard to predict when a new fire will start and how it will spread. Making sure a small business is prepared for the unexpected is important for every entrepreneur.