After the Ontario Mills Fires, Is Your Business Properly Covered?

You may have seen the recent news about multiple fires set inside Ontario Mills in Ontario, California. Several stores were impacted, including visible damage inside the True Religion store. Authorities confirmed the fires were intentionally set, and a suspect was arrested.

The mall reopened. But for business owners, the real issue is not the arrest.

It’s this:

If something like that happened to your location, would your insurance fully protect you?

Having a policy is one thing. Being properly covered is another.

Insurance vs. Adequate Insurance

Many businesses carry commercial property insurance. That does not automatically mean they are fully protected.

After a fire or major damage event, the most common problem is underinsurance.

That usually means:

• Property limits are outdated
• Business income coverage is missing or too low
• Ordinance and law coverage is not included
• Glass coverage is limited

You do not want to discover a gap after a claim is filed.

Are Your Property Limits Updated?

Construction costs in California have increased significantly over the past several years.

If your building or tenant improvement coverage has not been reviewed recently, your limits may not reflect what it would actually cost to rebuild today.

If the cost to rebuild exceeds your limit, you may be responsible for the difference.

Do You Have Business Income Coverage?

If your store has to close for weeks or months, your expenses do not stop.

• Rent
  Your landlord still expects payment even if your doors are closed.
• Payroll
  If you want to retain trained employees, you may still need to pay them.
• Utilities
  Basic service charges continue, even if usage drops.
• Loan payments
  Equipment loans, buildout financing, or credit lines still require payment.
• Vendor contracts
  You may still owe payments for inventory orders, supply agreements, or service contracts.

Business income coverage is designed to replace lost revenue so those obligations do not become personal financial strain.

Do You Have Ordinance and Law Coverage?

When a building is damaged, rebuilding must comply with current codes, not the codes from when the building was first constructed.

That can require:

• Electrical upgrades
  Older wiring may need to be replaced to meet modern standards.
• Fire suppression upgrades
  Sprinkler systems may need updating.
• ADA compliance changes
  Entrances, restrooms, and pathways may require modification.
• Structural improvements
  Reinforcements or materials may need to meet updated requirements.

Standard property policies often do not automatically cover these additional upgrade costs.

Do You Know What Glass Buyback Coverage Is?

This is the one many business owners are unsure about. Retail storefront windows can cost tens of thousands of dollars to replace.

Many commercial policies:

• Limit glass coverage
  They may cap how much they will pay.
• Apply a high deductible
  You may have to pay thousands out of pocket before coverage applies.
• Exclude certain types of breakage
  Some causes may not be covered unless endorsed.

Glass buyback coverage restores or expands protection for storefront glass and may reduce or remove certain limitations.

If your storefront was damaged tomorrow, would your glass be fully covered?

The Real Risks

Events like the Ontario Mills fires remind us how quickly damage can occur.

Losses can result from:

• Fire
  Intentional or accidental.
• Vandalism
  Broken windows, forced entry, property damage.
• Civil unrest
  Looting or storefront destruction.
• Accidental damage
  Electrical malfunction or equipment failure.

The cause matters less than whether your policy is structured correctly.

What Should You Review?

If you have not reviewed your commercial policy recently, look closely at:

• Your property limits
  Do they reflect today’s rebuild costs?
• Your business income protection
  Could it carry your business through a multi-month closure?
• Your ordinance coverage
  Would code upgrades be covered?
• Your glass coverage
  Would full storefront replacement be paid in full?

Insurance should not be something you think about only after a loss.

Want a Second Look?

If you are unsure about your current commercial business coverage, we are happy to review your policy and identify any gaps.

No pressure. Just clarity.

Call us at (909) 972-0699 or reply “Review” and we will take a look.

If you would prefer updated pricing, you can also request a new quote.