California Wildfires: Protecting Employees and Ensuring Business Continuity

Wildfires are a significant and growing threat in California, posing substantial risks to human lives, property, and businesses. In recent years, the state has experienced some of the most destructive wildfires in its history, fueled by a combination of factors such as climate change, drought, and increased development in wildland-urban interface areas. These events underscore the critical need for businesses to have comprehensive wildfire preparedness plans in place to protect their employees and ensure business continuity.

This article aims to provide risk managers and business owners with an updated and enhanced understanding of wildfire risks in California and offer practical guidance on how to mitigate these risks effectively. It expands upon the information presented in the original article from Strategic Risk ¹ and incorporates the latest statistics, resources, and strategies for wildfire prevention, mitigation, and recovery.

The Growing Threat of Wildfires in California

California has consistently ranked among the states with the highest wildfire risk in the United States. Over the past five years, the state has witnessed a staggering number of wildfires, resulting in millions of acres burned and significant property damage². In 2022 alone, California had over two million properties at risk of wildfire damage, nearly triple the number of the next highest state³. The 2020 wildfire season was particularly devastating, with over 4 million acres scorched, marking the largest wildfire season on record³. In 2023, over 7,000 wildfires burned nearly 325,000 acres and destroyed 71 structures⁵.

Several factors contribute to California's vulnerability to wildfires:

• Climate Change: Rising temperatures, prolonged droughts, and reduced snowpack create drier vegetation and increase the likelihood of ignition and rapid fire spread. Additionally, decreased rainfall means that vegetation remains dryer and more flammable into the late fall and winter months, increasing the likelihood of extreme, late-season wildfires⁶.
• Increased Development in Wildland-Urban Interface (WUI) Areas: As development expands into areas bordering wildlands, the risk of wildfires igniting and impacting communities increases.
• Forest Management Practices: Past forest management practices, including fire suppression, have led to denser forests with increased fuel loads, making them more susceptible to large and intense wildfires.

Government Regulations and Policies

Recognizing the increasing threat of wildfires, California has implemented various regulations and policies to mitigate risks and promote both individual and community preparedness:

• Defensible Space Requirements: Property owners in high-risk areas are required to maintain a 100-foot defensible space around structures by clearing flammable vegetation and materials. This helps to slow the spread of wildfires and provides a safer perimeter for firefighting efforts⁷. This requirement highlights the shared responsibility between the government and individuals in wildfire prevention⁷.
• Fire-Resistant Building Codes: New homes in high-risk areas must be constructed with fire-resistant materials to minimize the risk of ignition and damage⁷.
• Community Wildfire Prevention Programs: The state supports community-based wildfire prevention and mitigation initiatives to foster collaboration and collective action in reducing wildfire risks⁹.
• Fire Safety Laws: Regulations address campfire safety, fireworks use, and equipment operation in wildland areas to prevent accidental ignitions. These regulations often include restrictions on activities during periods of high fire risk, such as Red Flag Warnings¹⁰.
• Evacuation Orders: California law authorizes officers to restrict access to areas threatened by wildfires and issue evacuation orders to protect public health and safety. Refusal to comply with these orders is a misdemeanor under Penal Code 409.5⁸.

Protecting Employees During Wildfires

Protecting employees is paramount during wildfire events. Businesses should provide clear and comprehensive guidance to their employees on how to prepare for and respond to wildfires. Early preparation and planning are crucial for individual safety and can significantly reduce the impact of wildfires¹. Here are some key steps to share with employees:

1. Prepare Your Home:

• Create Defensible Space: Clear flammable vegetation and materials within a 100-foot radius of your home. This includes removing dry leaves, branches, and debris⁷.
• Harden Your Home: Use fire-resistant materials for roofing, siding, and windows¹².
• Prepare for Evacuation: Identify alternative living arrangements in case of evacuation, such as staying with friends or family, seeking shelter, or booking a hotel room. Plan multiple evacuation routes and designate a meeting location in case of separation¹.
• Assemble an Emergency Supply Kit: Include essential items such as food, water, medications, first-aid supplies, flashlights, batteries, and important documents¹.

2. Monitor Air Quality:

• Stay Informed: Pay attention to air quality reports and advisories.
• Limit Outdoor Activities: Minimize exposure to smoke and unhealthy air quality.
• Use Air Purifiers: If possible, use air purifiers indoors to improve air quality.
• Wear N95 Masks: If you must go outside, wear an N95 mask to reduce smoke inhalation¹.

3. Evacuation Procedures:

• Follow Evacuation Orders: If authorities issue an evacuation order, leave immediately.
• Secure Your Home: Close and lock all windows and doors. Turn off gas, electricity, and water.
• Take Essential Items: Bring your emergency supply kit, important documents, and medications.
• Inform Others: Let family, friends, and neighbors know where you are going.

Ensuring Business Continuity

Wildfires can disrupt business operations in various ways, including physical damage to facilities, supply chain disruptions, employee displacement, and loss of access to critical infrastructure. To minimize these disruptions and ensure business continuity, organizations should implement the following measures:

Risk Assessment and Mitigation

• Risk Assessment: Identify potential wildfire risks to your business, including physical damage, operational disruptions, and financial losses.
• Mitigation Strategies: Implement measures to reduce wildfire risks, such as creating defensible space around buildings, hardening facilities, and securing critical assets. This includes maintaining or replacing vent screens to prevent airborne embers from entering buildings and planning fire-resistant landscaping for the entire site¹³.

Emergency Response

• Emergency Response Procedures: Establish clear procedures for responding to a wildfire event, including evacuation plans, communication protocols, and employee safety measures. Business continuity planning should be closely linked to employee safety, with a focus on clear communication strategies and evacuation plans¹⁴.

Recovery and Restoration

• Recovery Strategies: Develop plans for restoring business operations after a wildfire, including data recovery, facility repairs, and supply chain restoration. This includes procedures for post-wildfire property inspection. Businesses should inspect their property for immediate dangers such as falling debris, burning embers, exposed electrical wires, and wild animals¹⁵.

Protect Critical Assets

• Data Backup and Recovery: Regularly back up critical data and store it offsite or in fire-resistant safes. Ensure that critical documents and data are backed up and stored in fire-resistant safes or offsite locations¹⁶.
• Equipment Protection: Safeguard important equipment or make it easily transportable in case of evacuation. Important equipment should also be safeguarded or easily transportable in case of evacuation¹⁶.
• Insurance Coverage: Review insurance policies to ensure adequate coverage for wildfire-related losses, including property damage, business interruption, and liability¹⁷.

Employee Communication and Support

• Disseminate Information: Provide employees with clear and timely information about wildfire risks, preparedness measures, and company policies.
• Offer Support: Provide resources and support to employees affected by wildfires, such as temporary housing, financial assistance, and counseling services.
• Communication Plan: Review and distribute an employee communication plan. A communication plan should be developed long before it's needed by keeping employee records updated, establishing a mass notification system, and setting guidelines for reaching out to anyone at risk¹⁴.

Utilize Technology for Prevention and Mitigation

• Early Detection Systems: Implement technologies such as satellite-based fire detection systems, drone surveillance, and AI-supported sensor networks to identify and monitor wildfires¹⁸.
• Predictive Modeling: Utilize machine learning and statistical modeling to predict fire behavior and allocate resources strategically¹⁹.
• Fire Suppression Technologies: Explore innovative fire suppression technologies, such as drones equipped with fire retardant or suppressant agents²⁰.

Post-Wildfire Recovery

After a wildfire event, businesses need to take steps to assess damage, secure their property, and begin the recovery process. Here are some key actions to take:

• Property Inspection: Inspect the property for immediate dangers such as falling debris, still-burning embers, exposed electrical wires, or wild animals. Remove dead plants, trees, or other dry vegetation near the building in case any flyaway embers ignite¹⁵.
• Secure Hazardous Areas: Secure any areas where dangers exist with caution tape. Keep areas cordoned off until a determination is made regarding safety¹⁵.
• Structural Assessment: Use flashlights to examine walls, floors, doors, and windows to ensure the building is not in danger of collapsing. If the building is in danger of collapsing, do not enter. Inspect the foundations for cracks and other significant damage, paying particular attention to retaining walls¹⁵.
• Electrical Safety: Look for any exposed wiring or electrical lines. If the power has not been turned off, do so immediately¹⁵.
• Documentation and Reporting: Complete an incident report and forward pictures to your supervisor, corporate office, and insurance agent¹⁵.

Insurance Options for Wildfire Risk Mitigation

Businesses should carefully consider their insurance options to mitigate wildfire risks.

Traditional property and business interruption insurance policies can provide coverage for physical damage and lost income²². Additionally, parametric risk transfer solutions offer an innovative approach to wildfire coverage, providing pre-agreed payouts based on the intensity and location of a wildfire event¹⁷. It is important to note that insurance policies may have restrictions or exclusions based on location, so businesses should consult with an agent to ensure they have adequate coverage²¹.

Case Studies and Resources

Several resources and case studies provide valuable insights into successful wildfire preparedness and mitigation strategies:

• Firewise USA: This program offers resources and guidance for communities to reduce wildfire risks²³.
• Resilient CA: This website provides case studies of communities and organizations that have implemented effective wildfire resilience strategies²⁴.
• Athena Intelligence: This company offers wildfire risk assessment tools and case studies for businesses and communities²⁵.
• Federal Emergency Management Agency (FEMA): FEMA provides disaster assistance programs and resources for businesses, including guidance on business continuity planning²⁶.
• Occupational Safety and Health Administration (OSHA): OSHA offers resources on workplace safety during and after wildfires²⁶.

Conclusion

Wildfires pose a significant and growing threat to California, driven by factors such as climate change and increased development in fire-prone areas. The increasing frequency and intensity of these events, as highlighted by the statistics on recent wildfire seasons ³, underscore the urgent need for both individual and organizational preparedness¹.

Businesses have a responsibility to protect their employees and ensure business continuity by implementing comprehensive wildfire preparedness plans. These plans should encompass risk assessment, mitigation strategies, emergency response procedures, and recovery strategies¹⁶. Furthermore, businesses should leverage technology for wildfire prevention and mitigation, utilizing tools such as early detection systems and predictive modeling¹⁸.

Government regulations and policies play a crucial role in mitigating wildfire risks. California has implemented measures such as defensible space requirements, fire-resistant building codes, and community wildfire prevention programs⁷. These regulations emphasize the shared responsibility between government, businesses, and individuals in reducing wildfire risks.

By taking proactive steps, staying informed, and utilizing available resources, businesses can enhance their resilience and ensure continuity in the face of this ever-present danger.

Works cited

1. Spotlight on: California wildfire risks and how to protect employees ..., accessed January 20, 2025, https://www.strategic-risk-global.com/catastrophe-risk/spotlight-on-california-wildfire-risks-and-how-to-protect-employees-and-ensure-business-continuity/1454214.article
2. Wildfire Statistics: Damage, Fatalities and Insurance Rates - ValuePenguin, accessed January 20, 2025, https://www.valuepenguin.com/homeowners-insurance/wildfire-statistics
3. Wildfires in the US: Alarming Statistics and Trends - Dryad Networks, accessed January 20, 2025, https://www.dryad.net/post/wildfires-usa-statistics
4. Our Impact | CAL FIRE, accessed January 20, 2025, https://www.fire.ca.gov/our-impact
5. California Wildfire Statistics (Updated 2024) - Policygenius, accessed January 20, 2025, https://www.policygenius.com/homeowners-insurance/california-wildfire-statistics/
6. California Fire Season: In-Depth Guide | WFCA, accessed January 20, 2025, https://wfca.com/wildfire-articles/california-fire-season-in-depth-guide/
7. California Laws Related to Wildfires - Panish | Shea, accessed January 20, 2025, https://www.panish.law/2021/09/california-wildfire-laws/
8. Understanding Fire Safety Laws For A Safer Community | CAL FIRE - Ready for Wildfire, accessed January 20, 2025, https://readyforwildfire.org/fire-safety-laws/
9. Community Wildfire Prevention and Mitigation - California Natural Resources Agency, accessed January 20, 2025, https://resources.ca.gov/Initiatives/Community-Wildfire-Prevention-and-Mitigation
10. California Fire Information and Fire Restrictions - Bureau of Land Management, accessed January 20, 2025, https://www.blm.gov/programs/public-safety-and-fire/fire-and-aviation/regional-info/california/fire-restrictions
11. Explore Wildfire Prevention Measures For California | CAL FIRE, accessed January 20, 2025, https://readyforwildfire.org/prevent-wildfire/
12. Mitigation That Matters: A Wildfire Case Study - Actuarial Review Magazine, accessed January 20, 2025, https://ar.casact.org/mitigation-that-matters-a-wildfire-case-study/
13. How Can Businesses Prepare for Wildfires? - AmTrust Financial, accessed January 20, 2025, https://amtrustfinancial.com/blog/loss-control/protect-your-business-from-the-impact-of-wildfires
14. Wildfire Preparedness Guide for Businesses | Leavitt Recreation & Hospitality, accessed January 20, 2025, https://www.leavitt.com/lrh/blog/wildfire-preparedness-guide-for-businesses
15. Wildfire Preparedness for Businesses | AJG United States - Gallagher Insurance, accessed January 20, 2025, https://www.ajg.com/disaster-preparedness/wildfire-preparedness/wildfire-preparedness-for-businesses/
16. Wildfire Preparedness For Businesses: What To Know - Global Guardian, accessed January 20, 2025, https://www.globalguardian.com/global-digest/wildfire-preparedness-for-businesses
17. Insuring Against Wildfire Risks: The Case for Parametric Insurance - Marsh McLennan, accessed January 20, 2025, https://www.marshmclennan.com/insights/publications/2023/april/insuring-against-wildfire-risks.html
18. Wildfire Technology: New Ways to Fight Forest Fires - Dryad Networks, accessed January 20, 2025, https://www.dryad.net/post/climate-change-technologies-to-help-tackle-wildfires
19. 8 blazing new technologies that could spark change in wildfire risk reduction, accessed January 20, 2025, https://wmo.int/media/news/8-blazing-new-technologies-could-spark-change-wildfire-risk-reduction
20. Drone Technology Supports Wildfire Prevention and Response - Dronelife, accessed January 20, 2025, https://dronelife.com/2025/01/20/drone-technology-supports-wildfire-prevention-and-response/
21. Fire Insurance for Small Businesses: Protect Yourself and Your Bottom Line - Insureon, accessed January 20, 2025, https://www.insureon.com/blog/fire-insurance-for-small-businesses-protect-yourself-and-your-bottom-line
22. Los Angeles Wildfires — Insurance Coverage Pointers for Home and Business Losses - Latham & Watkins LLP, accessed January 20, 2025, https://www.lw.com/admin/upload/SiteAttachments/Los-Angeles-Wildfires-Insurance-Coverage-Pointers-for-Home-and-Business-Losses.pdf
23. When Fire Prevention Gets Personal: Reducing Wildfire Loss with Firewise USA® - NFPA, accessed January 20, 2025, https://www.nfpa.org/for-professionals/for-business/case-studies/firewise
24. Case Studies | ResilientCA - Adaptation Clearinghouse, accessed January 20, 2025, https://resilientca.org/case-studies/?topics=8
25. Wildfire Risk Assessment Case Studies - Athena Intelligence, accessed January 20, 2025, https://www.athenaintel.io/case-studies/wildfire-risk-assessment-case-studies
26. Essential Resources for Employers Navigating Southern California Wildfires | CDF Labor Law LLP, accessed January 20, 2025, https://www.callaborlaw.com/entry/essential-resources-for-employers-navigating-southern-california-wildfires