If you currently operate a business in a building that is at risk of being destroyed
from a fire, such as a chemical manufacturing plant, restaurant, welding, or other
type of business with a higher risk of fire or explosion, you may be subject to
paying a large fee after calling the fire department. While the damages to your
dwelling and equipment might be covered by fire insurance, this insurance does not
often cover additional fees charged by the fire department. A special type of insurance
called Fire Department Service Charge Insurance can offer you financial protection
in the case of such an event.
What is a Fire Department Service Charge?
Many times after calling the fire department to put out a fire that has happened
at your place of business, they will charge for their services in what is called
a bill for services, or a service charge. While occasionally this will be covered
by the association between the fire department and taxing authority, this is not
always the case. The service charge may cover any number of things including fueling
the fire truck and due to maintenance on equipment.
What is Fire Department Service Charge Insurance?
Fire Department Service Charge Insurance is an elective insurance that offers coverage
in the event your building has had a fire — and you are then charged a service
charge by the fire department due to the building being outside the city limits
or for other reasons associated with their services. This type of insurance typically
offers coverage for the service charge up to a certain dollar amount of covered
property, which varies by location.
How Fire Department Service Charge Insurance Can Help
Fire Department Service Charge Insurance may be essential for certain types of businesses
that are in risk of fire or explosion. Some types of businesses are at a higher
risk due to the types of business they perform, such as those who manufacture or
work with certain chemicals or toxic substances, as well as businesses that use
fire and heat like restaurants or welders. While any business is at risk of potential
fire hazards, some are at a higher risk than others.
By obtaining Fire Department Service Charge Insurance, you can protect yourself
from potentially being charged a service fee by the fire department. Offering your
business the best possible coverage available includes supplemental insurance policies
such as one that will cover the fire department service charges.