A view of commercial buildings during daytime.

In 2023, there were almost 100,000 commercial structure fires resulting in over $2 billion in property damage in the United States.1 What can you and your employees do to mitigate risk  and prevent these damages? It’s important to create a safety plan, educate yourself and your team on the various appliance risks, and complete regular checks to make sure you’re minimizing fire risks.

Install and activate fire protection systems

The most obvious step to prevent fires is a fire protection and alert system—think smoke detectors, fire alarms and sprinklers. It isn’t enough to just have these systems, though. Make sure you regularly test them and that the system you have is sufficient for your business’s needs.2

Create a fire safety plan and train employees

Don’t underestimate the importance of training your employees on what to do in case of a fire, including evacuation routes, the location of and how to use a fire extinguisher, and how to report fire hazards and risks.2 It’s a good idea to run monthly or quarterly training exercises to make sure any new employees are familiar with safety procedures and reporting.

Set rules and regulations for fire prevention

Employees should know what to do to prevent fires, and it’s up to management and ownership to set standards and regulations around appliance use, electrical use and smoking to keep everyone safe and on the same page. Below are some standard guidelines:

Space heater safety

Space heaters are a common appliance in workspaces, and generally they are safe to use; however, make sure the areas around the heaters are clear of clutter, they are not overloading an outlet (an electrical fire hazard) and that they are inspected regularly so they do not malfunction.3

Designated smoking areas

If your workplace allows smoking, designate an outside smoking area and make sure it is equipped with fire-resistant disposals.2

Safe electrical outlet usage

Be sure to use surge protectors to prevent outlets from becoming overloaded and too hot, and refrain from chaining multiple extension cords or power strips.3 Also, be sure to do regular maintenance and check on electrical systems to make sure there is no faulty wiring that could cause a fire.2

Appliance responsibility

If your business has appliances, regularly check they’re functioning correctly. Encourage workers to use appliances appropriately, and ensure they have proper ventilation so they do not overheat and cause a fire.3

Keeping workplaces clean and clear

It’s important to make sure your workplace is not overly cluttered, not only because there could be potentially flammable materials and the fire could quickly spread in the clutter, but because clear evacuation routes could also be inhibited. Rid your space of unnecessary items and furniture, keep all exit routes clear, and double-check that electrical and heat sources are not covered.3

Design the property for structural fire prevention

Most likely you are not building your commercial building yourself. If possible, look for ways to retrofit your building to make it as fire-resistant as possible. Some examples include installing fire-rated doors and fire-resistant insulations.2

Check for potential fire hazards periodically

It’s always a good idea, no matter if you’ve had a fire scare or incident, to conduct regular checks on your HVAC systems, fire prevention systems, appliances, and electrical systems/wiring to make sure everything is safe and up to code.2 As stated above, make a habit of conducting safety walkthroughs and drills so everyone knows how to properly and safely evacuate in case of an emergency.

Get commercial property insurance for additional protection

Taking these steps, though helpful, cannot guarantee that your business will be free from incidents. So, what can you do to insulate yourself from harm in the event of a fire? Purchasing property or hazard insurance is a good place to start.

Small Business Icon
Learn more about Nationwide business insurance Talk to a specialist  
[1] “Transforming fire risk assessment with accurate data & advanced models” John Siegman, propertycasualty360.com/2023/06/26/transforming-fire-risk-assessment-with-accurate-data-advanced-models/ (Accessed February 2024)
[2] “How to Minimize Fire Risks in a Commercial Building,” fireline.com/how-to-minimize-fire-risks-in-a-commercial-building/ (Accessed 2024)
[3] “Fire Prevention Tips for Commercial Buildings,” statesystemsinc.com/blog/fire-prevention-tips-for-commercial-buildings/ (Accessed February 2024)

The information included here is designed for informational purposes only. Nationwide does not guarantee the accuracy or timeliness of the information contained herein. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to the reader’s specific situation. It is the reader’s responsibility to comply with any applicable local, state or federal regulations. Nationwide Mutual Insurance Company, its affiliates and their employees make no warranties about the information nor guarantee of results, and they assume no liability in connection with the information provided.