New York, April 29, 2024–(BUSINESS WIRE)–Lightning-induced fires cause 3% to 5% of all commercial real estate insurance claims in the U.S. and cost small and medium-sized businesses (SMBs) billions in annual compensation, according to insurance information. Accounts for dollars. Institute (Triple I) and Lightning Protection Institute (LPI).
“Lightning strikes can have a significant impact on businesses, especially small and medium-sized businesses,” said Tim Harger, executive director of LPI. “The potential consequences can be devastating, including business interruption, loss of revenue, and reputational damage. By taking proactive steps to protect their operations, small businesses can protect their livelihoods. and ensure long-term success.”
Harger noted that lightning fires cause structural damage, but even more costly are inventory damage, production downtime, and lost revenue during repairs. “Investing in lightning protection systems can help prevent business interruptions,” he said.
National Small Business Week (April 28 – May 4, 2024) is a great time to highlight the importance of properly designed, installed, tested and certified lightning protection and grounding systems that can reduce this risk to small businesses. It's an opportunity. Triple-I and LPI agree that implementing the system should be accompanied by companies purchasing the appropriate type and amount of insurance.
According to the U.S. Small Business Administration (SBA), 40% of small businesses nationwide do not reopen after a natural disaster, and another 25% go bankrupt within a year.
“Insurance allows businesses to recover financially from lightning strikes,” said Sean Keverigan, CEO of Triple Eye. “We therefore encourage policyholders to take advantage of tools to predict and prevent losses from occurring.”
Triple-I and LPI offer the following five steps to protect your commercial property from lightning damage.
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Install a certified lightning protection system – These systems provide a designated path to the harness and safely ground lightning overcharging currents. Every building is unique, so building owners must consider risk factors such as location, frequency of thunderstorms, and business impact such as loss of service or revenue. A properly installed lightning protection system includes the use of a certified lightning protection contractor and third-party inspection program.
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Reliable surge protection – Properly selected and installed surge protection devices protect electrical and electronic equipment from lightning and other surges that can enter a building from outside through electrical, telephone, data, or other wiring. It can be protected. Surge protection alone cannot prevent damage from direct lightning strikes. Protect your business from the effects of lightning by installing a complete lightning protection system that includes surge suppression.
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Purchasing property insurance – Property insurance pays for the repair or replacement of stolen, lost, or damaged business property. This covers the structure of your business and other assets on your premises, such as equipment.
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Consider business income (interruption) compensation – If your business is forced to temporarily close due to direct physical loss or damage to property from a covered cause of loss, such as a fire or storm, business income (interruption) insurance will cover your net It can make up for lost profits. A portion of the repair costs that would have been earned had no physical loss or damage occurred, as well as ongoing normal operating costs such as salaries, relocation costs, and advertising for setting up shop in a temporary location. pay. We also recommend utility interruption coverage, which covers your business from electricity, gas, and water interruptions.
“Business owners, by their very nature, are risk takers, and that's a good thing. After all, that's why they're so successful. But smart entrepreneurs also understand that business insurance is a risk-taker for their overall business. We recognize that it is an integral part of the plan,” Keverigan concluded.
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Insurance Information Institute (Triple-I) is the number one online source of insurance information in the United States, with a membership of more than 50 insurance companies, including regional, super regional, national, and global insurers. 1. This organization's website, blog, and social media channels include data-driven research studies, white papers, videos, articles, infographics, and more dedicated solely to explaining and improving insurance knowledge. There are plenty of resources available.
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About Lightning Protection Association
Lightning Protection Association founded in 1955 (LPI) is the voice of manufacturers and contractors of lightning protection and grounding systems. We work to improve our company, improve our industry, and benefit the communities and customers we serve. LPI improves the quality, safety, and functionality of the lightning protection and grounding systems that our members manufacture, design, and install.
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Media contact: Loretta Waters, Insurance Information Institute (Triple I), 917-208-8842; lorettaw@iii.org