Business fire damage is expensive, and more companies are failing due to fires than other causes of business failure. Depending on the business, these fire losses can be between 10-50% of a company’s gross revenue. Businesses lose operations and profits, which is true regardless of the company’s size or whether it is a new or old business. The losses may not be lost income if insurance covers them or there is enough capital to rebuild. Here we shall look at the causes of business fire damage and their effects on companies.

1. Faulty Electrical Equipment

Fire Damage

Faulty electrical equipment is a significant cause of business fire damage. This equipment can be in computers, appliances, and wiring, and faulty wiring can also contribute to fire damage. Equipment can catch fire from overloading or the release of static electricity. Some companies do not bother to fix known faulty chargers, which also cause fires. Other companies ignore the visible signs of faulty wirings, such as poorly insulated wires, which increase the chances of a fire. Correctly wired appliances reduce the likelihood of fires occurring by more than 50% in commercial facilities.

2. Spontaneous Combustion

Spontaneous combustion is a factor in many fires. This happens when organic materials, such as cotton, wood, and textiles, are stored for too long. The longer the materials are stored before being used, the higher the chances of spontaneous combustion happening during this storage period. Companies should keep goods in storage for up to one year. More extended periods increase the chances of fires occurring during open storage. Companies should store combustible materials in closed containers to prevent fire damage to these goods due to spontaneous combustion.

3. Ignition

Fire Damage

Ignition is one of the most common types of business fire damage. Reasons for ignition fire damage include faulty electrical wiring, chemical reactions, and human error. Ignition is a factor in 20% of all commercial fires, but it can be prevented through the correct use of equipment, regular inspections, and the correct maintenance of electrical equipment.

4. Overheating

Overheating can cause fires, a problem for companies that use high-energy equipment, such as air conditioning units. The only way to prevent overheating is for companies to maintain their cooling systems well. Cooling systems should be checked regularly to ensure they are working correctly.

5. Heating

Fire Damage

Heating equipment, such as wood stoves and fireplaces, can cause business fire damage. Companies should ensure all heating appliances are used safely and that people operating the appliances are trained in how to do so correctly. Electric heaters that have frayed wires or those where the cord is not correctly connected can also cause fires. Restoration 1 can help restore your facility after fire damage has occurred.


The causes of business fire damage are numerous, and a lot of care needs to be taken when it comes to putting out fires. This is why companies need to ensure they are up to date on the latest fire safety regulations and always have a sprinkler system installed. These systems will significantly reduce the risk of fire damage occurring in the first place, ensuring the company will not have to deal with so much time and money being wasted in dealing with the consequences.