AVOIDING AN ELECTRICAL FIRE AT YOUR BUSINESS

Fire.

It’s a word you never want to hear in association with your business. Even small fires can cause a great deal of damage, and frankly, damage is just the best case scenario when it comes to fire—if nobody is hurt, you consider yourself lucky.

But any fire is serious, often followed by months-long investigations to determine the cause of the fire. As that process plays out, there’s also the need to clean up the mess, which typically takes close to a week and requires a short-term shutdown even with a small and contained fire. That’s because when it comes to fire, the damage often goes beyond what actually was burned: smoke and water damage from sprinklers typically extend far beyond the original location of the fire.

The best response to fires is to mitigate the potential causes before they occur. While some of these causes may seem obvious—as you would expect, smoking materials and cooking equipment are two of the leading causes of fires—others can be almost impossible to detect. Fortunately, if you know what to be aware of and what to look for, you can go a long way toward avoiding even the fires that start from unseen sources.

Electrical Fires

From 2014 to 2023 the U.S. Fire Administration reported more than 110,000 fires in non-home structures. These fires resulted in 130 deaths, 12,000 injuries and $3.16 billion in direct property damage. The majority of electrical fires—about 66 percent according to the National Fire Protection Association—are indeed caused by wiring issues that are unseen and that most people would call unknowable. These causes included: faulty lighting fixtures; animals chewing through wire; electrical surges from outside the building; overloaded wiring (for example, connecting appliances that have a greater electrical draw than the wiring was designed to support).

But with the right amount of prevention and vigilance, you can actually take some steps to mitigate these issues:

• Ensure that everyone who works on your building’s wiring is a qualified electrician with their own insurance coverage. Check references!
• If you had a pest problem in the attic or walls, make sure you mitigate the issue and take steps to prevent a recurrence. Have any exposed wiring checked for damage.
• When purchasing new equipment, make sure your electrical system can handle the voltage or amperage needs of the new equipment.
• Equipment should be listed and approved and used for its intended purpose only. For example, using a residential electric range is not acceptable for commercial cooking operations.

Another major source of electrical fires is from the improper use of extension cords. Most large appliances are not designed to be plugged into an extension cord, and most appliances do not move once they have been positioned. Since, by definition, an extension cord is a temporary electrical service, plugging an appliance into an extension cord violates most electrical codes and OSHA standards (1910.305). Additionally, extension cords and appliance cords should never be coiled while in use or placed under carpeting or rugs, as this can lead to overheating and fire hazards. Instead of using extension cords or power strips, consider having a qualified electrician install additional outlets.

Extension cords should not run through a doorway—they often get pinched and damaged this way—nor should they run underneath a heavy object. Although you may not immediately see the damage on the exterior of the cord, chances are that extension cords used in this fashion are damaged and can become major fire risks.

Avoid overloading outlets. Plugging too many devices into a single outlet or power strip can overheat the circuit and lead to fires.

Finally, power strips should never be plugged into extension cords. Power strips should only be plugged directly into an outlet. Furthermore, power strips are not designed to support appliances; the power draw on most appliances is too great for power strips and can lead to fires.

Other important tips to follow:

• When purchasing used equipment, make sure to have it inspected by a professional to ensure the wiring, controls and safety features are functioning properly.
• Ensure that devices have both a high temperature limit switch that will shut the equipment down if the primary thermostat fails and a tip-over feature that will shut the device off if it tips over. If it doesn’t have these features, don’t make the purchase.
• Have your building’s electrical system regularly inspected by a qualified electrician to ensure there are no obvious weaknesses.
• If you have a circuit that causes the breaker to trip when you turn on two pieces of equipment at the same time, this is a sign of an overloaded circuit immediately call an electrician and get it fixed. Constantly resetting the breaker is not a solution.
• Read and retain the owner’s manual for all equipment and appliances. Use it to train your employees.
• The only person who should work on your building’s electrical system is a qualified electrician—not your cousin’s nephew who is good with his hands.
• Set up a preventive maintenance schedule for all appliances and have a qualified technician perform an inspection to ensure they are functioning properly.
• If outlets or switches feel hot, you have frequent problems with blowing fuses or tripping circuits, or you have flickering or dimming lights, call a qualified electrician.
• Have your building’s electrical system regularly inspected by a qualified electrician to ensure there are no obvious weaknesses.
• Make sure you have ground fault circuit interrupters (GFCIs) in any areas where water may be a factor. Install circuit breakers that include arc fault circuit interrupters (AFCIs) in your electrical panels or AFCI outlets in branch circuits. An AFCI is designed to prevent fires by detecting an unintended electrical arc and disconnecting the power before the arc starts a fire. Some areas will require both GFCI and AFCI protection.

Summary

Electrical fires can happen even under the most careful watch, which is why prevention must be a continuous priority. This whitepaper reinforces the importance of regular maintenance, thorough inspections, proper equipment usage and hiring qualified professionals for repairs. These proactive steps are essential to minimizing risk and ensuring long-term electrical safety.

Society’s team of loss control experts, association partners and agents can help restaurant and bar owners ensure that they have the proper practices and policies in place—right down to the smallest details—to prevent and recover from a fire. With extensive experience in insuring businesses, Society can provide policyholders with a custom plan that fits their needs. Get in touch with a Society agent today to learn more about how to best protect your business.