California is a state particularly vulnerable to climate change, and while other states have to worry about natural disasters like tornados, hurricanes and floods, California’s most damaging natural disaster are the massive wildfires. Although it will depend on which part of California your business resides in, wildfires cause a significant amount of damage to Californian businesses every year and business owners are advised to get insurance. Specifically, those in Los Angeles are graded at the highest risk right now. So, what should you know about wildfires?

California is in a peculiar situation because some insurance companies, in their words, have lost too much money offering coverage for wildfire insurance and so many have pulled out of the state, or have limited their coverage. While there are still ways to get wildfire coverage, it’s very possible that coverage in areas that have high risks of a wildfire will be denied by traditional insurance carriers.

The California FAIR Plan is offered to all property owners, even in high-risk areas. Generally, the FAIR Plan is more expensive, offers less coverage, and is intended as a short-term solution to fill an insurance void while the property owner works to become eligible for conventional coverage. Essentially, it will cover against major damage, but also, it’s expensive and meant to be temporary.

Another thing you should know is that the California State Fire Marshal verifies where the high-risk wildfire areas are, and they publish Fire Hazard Severity Zone maps that will include where they believe there will be elevated wildfire risks. Business owners should periodically check these maps to ensure they’re up to date with their current situation.

Overall, wildfires are a natural part of California and business owners should always try to protect themselves before it’s too late. The hope is that these fires don’t affect your business, but if the fires do create an emergency situation, coverage from insurance will at that point be priceless.