I work for a small non profit in a small town in southern Arizona. Meals for Wheels kinda stuff, medium sized kitchen. Not too long ago I found out that they were non compliant with their fire code regulations. All extinguishers, including large commercial propane stove suppression system, expired for years. No smoke detectors, no exit signs, no SDS booklet, etc.
It was brought to their attention and they have been working through the county for grant help to bring everything up to date. It has been almost two months and no remedies have taken place.
We had the small town fire chief stop by with another chief from elsewhere to look things over. They explained everything that was needed.
Would an insurance claim adjuster allow a claim to go through on a business that had expired extinguishers and no alarms or exits marked if a fire caused damage, injury or loss of life?
The two small town chiefs delayed to answer when I asked them the insurance question. They both seemed to play dumb and said they've never ran into that before and didn't know.
I need to know if I, or anyone else there, would be covered for medical bills or worse due to a fire related accident. Any knowledge is appreciated.
Non profit is not compliant with fire codes
byu/CrunchySockTaco inInsurance
Posted by CrunchySockTaco
1 Comment
I’ve seen carriers cancel policies for things like out of date fire extinguishers and suppression systems. If fire protection is inadequate due to improper servicing, an adjuster could very likely deny a claim if there was a fire depending on the policy contract wording.
I’ve seen a fire claim denied on a business because a fire alarm was out of service, and it was a contractual requirement that it be active and working. The building burned down (nobody was hurt thankfully) and insurance paid zero.
That being said, for your “injury or loss of life” part, liability insurance is for damage or injury to third parties like customers or volunteers. If you’re considered an “employee” of this non-profit, then workers compensation insurance would cover medical bills from injuries sustained while on the clock if your non-profit carries a policy.