Wildfires have moved from being rare disasters to regular threats in recent years, and 2024’s LA wildfires have been a brutal reminder.
Thousands of acres were burned within days, putting entire industrial zones at risk. Businesses were forced to halt operations, and many realised too late that their insurance coverage was not built for large-scale natural catastrophes.
It was not just homes or forests that were destroyed, it was infrastructure, warehouses, factories, corporate offices, and supply chains.
The LA wildfire crisis has exposed a harsh truth: Traditional insurance structures are no longer enough for evolving natural disaster risks.
According to the Insurance Information Institute:
- 6,000+ wildfire incidents were recorded in California in 2024.
- $2+ billion in insured losses were reported.
- Only 60% of affected businesses had full protection against wildfire-related damages.
In a world of increasing climate volatility, this is not just California’s story, it’s a blueprint for risk exposure everywhere.
Key Insurance Insights:
✅ Property Policies Are Not Enough:Many traditional covers excluded wildfire-specific damages. Specialised riders and catastrophe covers became essential.
✅ Business Interruption (BI) Is Critical:Loss of access, supply chain disruption, and operational shutdowns created major uninsured losses.
✅ Underinsurance Was Rampant:Valuation gaps between the asset’s worth and the insured sum were exposed during claims.
✅ Responsive Claims Service Was Key:Firms with proactive, fast-acting brokers saw 25–30% faster claim settlements.
Lessons learned:
> Review your fire and catastrophe risk exposure annually.
> Ensure Business Interruption and Catastrophe Add-ons are integrated.
> Choose insurance partners who prioritise real-time claims support and tailored risk consulting.
Because disaster does not wait for paperwork.
At Beacon Insurance, we build future-ready risk solutions that move as fast as your business needs.
Let’s build a shield that stands the test of crisis: https://beacon.co.in/
