A fire just hit your company, and it’s undoubtedly one of the most dramatic moments in the life of any business owner. The flames are put out, and the smoke has already dissipated, but now what?
Nobody expects a disaster, although there are ways to prevent further damage when it happens. The important thing is not to let the fire destroy your business due to the loss of productivity and revenue.
A fire in your workplace is a terrible event, but it doesn’t mean the end of your company. This may even mean a chance to renew some procedures and improve safety standards. The important thing is to remain calm and follow some basic steps right after the incident.
1. Document the Damage
The moment the fire department says it’s safe to enter the building, start documenting and collecting information about the damage. A building that survived a fire is often a chaotic scene, but you will need to avoid mistakes in the processes that follow—especially with your insurance company.
Start by collecting all receipts and expenses related to the disaster. Create a file and keep complete records of all phone calls, budgets, and reconstruction decisions. Don’t sign or approve anything in the heat of the moment.
Take lots of pictures of the damage, from all angles and in detail. Be sure to photograph furniture, machinery, and any equipment affected by the flames before removing them from the building. A complete inventory of the damaged material is essential when the insurance company enters the scene.
2. Secure the Scene
With the help of local authorities, ensure that the scene is stable and secured. Empty and semi-destroyed buildings are sometimes considered abandoned and become targets for thieves and vandals. The police can help for a while, but it may be necessary to provide private security if valuable assets are still in place.
You can also limit access by closing all possible access from the outside with planks or bricks, like broken windows, destroyed doors, or partially collapsed walls. Tarps are a cheaper option to replace a compromised roof and prevent leaks that can worsen the building’s conditions.
3. Pause Your Utilities
The fact that the fire is extinguished doesn’t mean that the risks are over. Avoid further damage by turning off all utilities. Gas and electricity can be turned off at the meter, but be sure also to close the water valve to prevent leaks. Only turn the utilities on again after the building is inspected and released for use.
4. Contact Your Insurance Company
Your insurance company will analyze the damage and discuss the situation, in addition to advising you on what is covered. Depending on what was damaged, you can benefit from different policies:
- Commercial Property Insurance– This coverage helps with fire expenses on your property and equipment (such as tools, inventory, and furniture).
- General Liability Insurance– If your business operates a rented space, you can file a general liability insurance claim for the damage caused.
- Business Interruption Insurance– Depending on the nature of the fire, you may be able to use your business interruption insurance to replace lost revenue. Business interruption insurance covers operating expenses, payroll, and even the costs of moving to a temporary location, if necessary.
5. Reach Out to All Parties Involved
In addition to local authorities, you will also have to communicate the situation to all of your employees, customers, suppliers, vendors, and, if applicable, partners or shareholders. This sharing of information is very important to create an image of trust and transparency.
In a second step, notify the post office about the alternative address to forward your correspondence and update your website to inform customers you will temporarily be out of business. This will ensure understanding and support from your customers.
6. Initial Cleanup
Not all fires completely destroy the building. Depending on the severity of the incident, you may be able to begin the cleanup process yourself—but always with the guidance of the fire department.
As soon as your access to the building is authorized, you can start cleaning the furniture, equipment, and items that weren’t damaged. Take them to a safe place. They were probably affected in some way, if not by fire, by smoke, soot, or water, which will require proper cleaning and maintenance.
Soon, it will also be necessary to clean the building itself. Fire and smoke effect floors and walls differently, often requiring some specific cleaning. Don’t forget about HVAC systems, which can retain harmful waste.
7. Establish Recovery and Renovation Plans
A fire can destroy the business you took years to create in minutes. Unfortunately, recovery will not be as quick. It will take some time for all processes, from obtaining insurance coverage to cleaning and rebuilding the site.
This is the time to be realistic but also motivated. There’s no point in rushing the repair process to try to get back to work sooner because this will cost you more. Try to draw up recovery and renovation plans according to your finances and needs, maybe restarting activities little by little.
8. Prevent Your Business From Turning Into Smoke
According to the Federal Emergency Management Agency (FEMA), more than 40 percent of companies are unable to recover after a disaster. But this data shouldn’t leave you pessimistic. On the contrary, it should motivate you to invest in proper prevention. You cannot predict or control natural disasters, but you can create a contingency plan and be prepared to cope with the recovery.
This is one of those cases where what you do before is usually more important than any decision you can make after the incident. So try to buy new insurance coverage, or increase your existing policy, to help your business get back on track even stronger than before.
