Wildfire preparedness for small businesses has become increasingly important across California and Nevada. As fire seasons extend and become more disruptive, the need for practical, forward-thinking preparation is clearer than ever. While no plan can eliminate every risk, taking steps to strengthen operations and protect key assets can help businesses navigate disruptions caused by fire with greater stability.
The economic toll of recent wildfires underscores what’s at stake. In 2018, insured wildfire losses in California exceeded $12 billion. More recently, the 2025 Los Angeles wildfires were projected to cause up to $8.9 billion in lost economic output, according to the Los Angeles County Economic Development Corporation and the Southern California Leadership Council. These fires also led to significant labor impacts, with tens of thousands of job-years lost and billions in wages disrupted. In Nevada, wildfire risk continues to grow as development moves into previously undeveloped areas, leaving many small businesses more exposed. Those without strong insurance coverage or response plans often face the greatest challenges in recovery.
The following steps can help business owners reduce risk and prepare effectively before a wildfire impacts their area.
Protect Your Property and Daily Operations
Start by creating a defensible space around your business. This includes clearing brush, dead vegetation, and debris within 30 to 100 feet of your building. These efforts reduce the likelihood that fire will spread to your property and help first responders defend the area.
Other important steps include:
- Trimming trees and maintaining landscaping to reduce fuel near structures
- Upgrading to fire-resistant materials for roofing, siding, and vents
- Storing equipment and documents in secure, fire-resistant locations
- Installing surge protectors or generators to support critical systems during outages
- Exploring financing options to make these upgrades possible. AmPac’s Community Lending Program may be able to assist with funding for business improvements that support wildfire preparedness and resilience
Many local fire departments provide on-site risk assessments. You can also explore community-level programs like Firewise USA, which help businesses and neighborhoods adopt risk reduction strategies together.
Review and Strengthen Your Insurance Coverage
Wildfire coverage is not always included in standard commercial property insurance. Take time to review your policies with an agent and make any necessary updates.
Important coverage to confirm:
- Wildfire protection under your commercial property policy
- Business interruption insurance to replace income during closures or evacuations
- Replacement cost coverage for inventory, equipment, and property
Businesses in high-risk parts of California may be eligible for the California FAIR Plan if private insurance becomes unavailable. In Nevada, the Division of Insurance can help you explore wildfire-related coverage or navigate claim concerns.
Organize and Back Up Important Financial Documents
After a wildfire, quick access to financial records can speed up your recovery. Keeping these materials current and safely stored can support insurance claims and loan applications.
Essential documents include:
- Profit and loss statements and recent tax returns
- Inventory lists with estimated values
- Lease agreements or property ownership records
- Business licenses, incorporation documents, and insurance policies
Store copies both in a cloud-based system and in a secure, fire-resistant physical location.
Wildfire Recovery Funding for Small Businesses
If a wildfire impacts your business and your area receives a federal disaster declaration, the U.S. Small Business Administration may offer financial support.
Available assistance includes:
- Physical Disaster Loans to repair or replace real estate, machinery, inventory, and fixtures
- Economic Injury Disaster Loans to help with working capital when revenue is reduced by wildfire-related disruption
These loans often have low interest rates and long repayment terms. You can apply online at the SBA website.
California and Nevada also provide local resources:
- Cal OES and IBank may offer grants, technical assistance, or short-term loans in California
- Nevada businesses affected by wildfires can apply for disaster loans from the U.S. Small Business Administration. For help through the process and guidance on recovery strategies, contact the Nevada SBDC, which partners with GOED. Additional support may be accessed via the Nevada Office of Emergency Management and the Nevada Division of Forestry, especially for wildfire mitigation projects.
Build an Evacuation and Recovery Plan
Having a clear and practiced plan can help your business respond quickly and effectively during an emergency. This plan should include:
- A reliable way to communicate with employees, clients, and vendors
- Remote access to essential records and business systems
- Backup work locations or flexible remote work procedures
- A reopening checklist that outlines steps to resume operations
Test your plan regularly and make sure all staff are familiar with their roles and responsibilities during an emergency.
Final Thoughts: Focus on Readiness, Not Fear
Wildfire preparedness is essential for small businesses aiming to remain resilient year after year. By taking steps to protect your property, review your coverage, safeguard your records, and understand your financial options, you are creating a stronger foundation for recovery.
Preparation is not about predicting the worst. It is about putting your business in the best possible position to continue serving your community, no matter what comes next.