As summer temperatures rise across the Pacific Northwest, wildfire season is becoming a top concern for business owners throughout Washington and Oregon. State and federal agencies continue to emphasize wildfire preparedness, and fire restrictions are already in effect across many public lands due to elevated wildfire risk. [fs.usda.gov], [komonews.com]
While many businesses focus on evacuation plans and property protection, insurance preparedness is often overlooked until after a loss occurs. A mid-season insurance review can help ensure your business is adequately protected against wildfire-related damage, smoke contamination, business interruptions, and other unexpected expenses.
Why Wildfire Risk Matters to Businesses
Wildfires don’t have to directly destroy a building to create significant financial losses. In recent years, businesses throughout Washington and Oregon have experienced disruptions from:
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Smoke damage to buildings and inventory
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Mandatory evacuation orders
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Road closures limiting customer access
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Utility outages
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Employee displacement
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Reduced tourism and foot traffic
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Supply chain disruptions
Pacific Northwest agencies continue to warn that communities face increasing wildfire and smoke impacts, making preparedness a critical business responsibility. [epa.gov], [ecology.wa.gov]
5 Insurance Coverages Business Owners Should Review Now
1. Commercial Property Insurance
Start by reviewing your property coverage limits.
Many businesses purchased policies years ago and may not have adjusted limits to reflect today’s construction costs, equipment values, or inventory levels.
Ask yourself:
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Would current limits fully rebuild your building?
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Has equipment been upgraded recently?
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Has inventory increased?
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Have you added improvements or renovations?
Underinsurance can leave business owners responsible for substantial out-of-pocket costs after a wildfire loss.
2. Business Interruption Coverage
One of the most valuable—but often misunderstood—coverages is Business Income (Business Interruption) Insurance.
If a wildfire forces your business to temporarily close, business interruption coverage may help replace lost income and assist with ongoing expenses such as:
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Payroll
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Rent or mortgage payments
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Utilities
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Taxes
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Loan obligations
Even businesses that survive a wildfire without physical damage may experience severe financial losses if customers cannot access the area.
3. Extra Expense Coverage
Many businesses need to relocate operations following a wildfire event.
Extra Expense coverage may help pay for:
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Temporary office or retail space
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Equipment rentals
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Emergency operating costs
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Additional transportation expenses
This coverage can help businesses resume operations more quickly while repairs are underway.
4. Smoke Damage Coverage
Smoke can be just as damaging as flames.
Restaurants, retailers, medical facilities, warehouses, and professional offices may all experience contamination of:
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Inventory
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Furniture
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Electronics
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HVAC systems
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Interior finishes
Business owners should review policy language to understand how smoke-related losses are handled and whether any limitations apply.
5. Commercial Auto Coverage
Wildfire risks extend beyond the physical business location.
Companies that operate:
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Service vehicles
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Delivery fleets
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Contractor trucks
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Mobile equipment
should verify that vehicle values and coverage limits remain accurate. Evacuations, falling debris, and fire-related incidents can create unexpected losses.
Don’t Forget Employee Safety
Wildfire smoke can create workplace hazards, particularly for businesses with outdoor workers.
Construction companies, landscapers, agricultural operations, and utility contractors may face increased employee health and safety responsibilities during periods of poor air quality. Oregon OSHA has specific wildfire smoke protection requirements for workers exposed to wildfire smoke. [osha.oregon.gov], [oregon.gov]
Reviewing workers’ compensation coverage and workplace safety procedures before peak wildfire season can help reduce risk.
Additional Risk Management Steps
Insurance is only one part of a wildfire preparedness strategy.
Business owners should also consider:
Create Defensible Space
Remove dry vegetation, debris, and combustible materials around buildings whenever possible. Fire agencies throughout the Pacific Northwest continue to recommend creating defensible space around structures to reduce wildfire risk. [nwfirewatch.com], [nwfirewatch.com]
Develop an Emergency Response Plan
Employees should know:
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Evacuation procedures
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Emergency contact information
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Remote work expectations
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Business continuity plans
Back Up Digital Records
Store critical business records securely in cloud-based systems, including:
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Insurance policies
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Employee records
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Customer information
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Financial documents
Document Property and Equipment
Take updated photos and videos of:
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Buildings
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Equipment
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Inventory
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Signage
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Vehicles
This can significantly simplify the claims process after a loss.
Final Thoughts
Wildfire season is no longer a concern only for remote or rural businesses. Smoke, evacuations, utility disruptions, and business interruptions can affect companies throughout Washington and Oregon.
A proactive insurance review now can help identify coverage gaps before an emergency occurs. By reviewing property, business income, extra expense, commercial auto, and workers’ compensation coverage, business owners can improve their financial resilience and better protect their employees, customers, and operations.
The best time to evaluate your insurance protection is before wildfire season reaches its peak—not after a claim is filed.
