Fire Legal Liability Insurance

A fire can cause major damage to a building in a matter of minutes, quickly spreading until it becomes a raging inferno that's nearly impossible to control. If your business is renting a property that goes up in smoke, you could be liable to pay for damages. Fire legal liability insurance offers you protection from another major financial loss after an already devastating fire.

Fortunately, a local independent insurance agent can help you find the right fire legal liability insurance. They'll get you set up with the ideal amount of coverage for your rented property. Until then, here's a closer look at fire legal liability insurance, what it covers, and why it's necessary.

What Is Fire Legal Liability Insurance?

In rental properties, fires can cause major disputes between landlords and tenants. Fire legal liability refers to who's ultimately responsible for paying for damages related to a fire. 

For the business owner, fire damage legal liability is included under their commercial general liability insurance policy. However, in order for the insurance policy to pay for fire-related damages, it must be proven that the insured party was directly at fault.

Imagine you're currently renting a downtown storefront where you sell wedding dresses. One night, while closing up, an employee accidentally leaves a steamer plugged in. After everyone has locked up and left for the night, the steamer catches on fire, sending the whole building up in smoke. 

By the time local firefighters stop the blaze, the building has suffered $75,000 worth of damage. The landlord demands that you pay for the repairs since your business ultimately caused the fire due to negligence. In this case, your fire legal liability insurance would pay for the losses.

Why Is Fire Legal Liability Insurance Necessary?

Fires are one of the most destructive and expensive property disasters. Every year, they cost U.S. residents and businesses billions in property damage. Here are some recent fire damage stats to further illustrate the necessity of fire legal liability coverage.

• Fire departments in the U.S. responded to about 1.5 million fires in 2022.
• A reported 3,790 civilian fire deaths and 13,250 injuries were caused by these fires.
• An estimated $18 billion in property damage was caused by these fires. 
• Fire departments responded to U.S. fires every 21 seconds in 2022. 
• Home fires were reported every 88 seconds in 2022.
• Structural fires accounted for more than 1/3 of these fires.

Every day, fires cause major damage across the nation. These blazes can start in the blink of an eye, sparked by electrical problems, lightning, or simple accidents. 

Potential fire hazards are everywhere, from space heaters to deep fryers to outdated wiring. For a business owner, this is a major cause for concern that must be addressed with fire legal liability insurance.

What Does Fire Legal Liability Insurance Cover?

Since fire is such a common threat to all types of property, having fire legal liability insurance is critical to protect yourself or your business against potentially hefty financial losses. Fire legal liability insurance covers you in two major ways:

• Property damage coverage: Fire legal liability insurance can pay to repair or rebuild property that gets damaged by a fire.
• Legal defense coverage: Fire legal liability insurance can reimburse you for defense costs, including attorney, court, and settlement expenses, if your business is sued for fire damage.

Without fire legal liability insurance, you or your business might have to pay for the cost of fire damage on its own, which could lead to major setbacks or even bankruptcy. 

What's Not Covered by Fire Legal Liability Insurance?

Fire legal liability insurance has a few exclusions you should be aware of. This coverage typically doesn't cover any of the following:

• Intentional or malicious acts
• Criminal activities
• Gross negligence

Fire that results from any of these causes is unlikely to be covered by a fire legal liability insurance policy. Be sure to review your or your business's specific policy in depth and become familiar with its coverage exclusions.

Fire Legal Liability Insurance Limitations

There are some instances where a tenant is liable for a fire, but their general liability insurance policy will not cover the loss. If your business signs a lease that accepts full responsibility for any fire damage that occurs while you're under the lease agreement, it doesn’t matter whether the fire was caused by your negligence, lightning, or a wiring problem. You’ll be forced to pay because you signed a contract agreeing to that arrangement. 

But your fire legal liability insurance will only pay for the damage if you directly caused the blaze, meaning you’ll be responsible for these damages out-of-pocket unless you secured additional coverage in advance.

Is Fire Legal Liability Insurance Enough?

Because natural disasters can cause fires, and they are sometimes no one’s fault, it’s important to take extra precautions. You can request a legal liability coverage form from your insurance provider, which will give you additional coverage for any type of damage sustained by the commercial property while you are a tenant. 

This coverage will not cover not only fires but also tornadoes, flooding, and other damages that happen on your watch. This is a smart way to protect your financial future in case of a major disaster while you are leasing a property for business use.

How Much Does Fire Legal Liability Insurance Cost?

Like general liability insurance, the cost of fire legal liability insurance can vary depending on a number of factors. These typically include the following:

• Property location
• Type of business or residential property
• Coverage limits and deductible
• Fire safety measures in place
• Prior claims history

If you've filed claims related to fire damage in the past, your premiums are likely to be more expensive as a result. An independent insurance agent can help you find affordable fire legal liability insurance near you.

Save on Business Insurance

Our independent agents shop around to find you the best coverage.

Request a quote

An Independent Insurance Agent Can Help You Find the Best Fire Legal Liability Insurance

If you’re worried about your potential risk for liability problems related to fires, an independent insurance agent can help. Our experienced agents work with business owners daily, matching them with the best coverage options to protect their companies from financial ruin after a disaster. 

If you wait until a fire starts to think about liability issues, it will be too late. Contact an independent insurance agent today to ensure your business is adequately covered against fire legal liability risks.