The True Cost of Fire Incident

July 10, 2023

RCL Industrial Safety Centre Ltd

When a large fire occurs, it’s easy to understand how financially devastating that can be—but the ripple effect is often catastrophic. While many people immediately think about the financial devastation, the reality is that the costs go far beyond the immediate damage, while other effects are much more far-reaching.

Financial Loss

The first result of a large fire is the monetary loss, and it will be significant. Over 2/3 of small or medium-sized businesses will fail to reopen after a significant fire. The loss of property, assets, and inventory is a devastating blow even to large corporations. Larger companies typically have the resources to recover, but there are still effects, such as loss of market share, supply chain interruption, a damaged reputation, or layoffs.


If a company fails due to a large fire, every employee will be out of a job. Even when the company manages to stay open, it is common for layoffs to occur due to extreme financial pressure. For instance, a known plastic factory was the victim of a large fire in November of 2022 .120 employees lost their jobs as a result of the fire. These are only the direct losses. It is not unusual for even more jobs to be lost along the supply chain as these businesses fail to fully recover.

Local Economy

When layoffs occur, it negatively affects the local economy, especially in smaller towns or cities. Layoffs are not the only problem. A local economy has now lost all or part of a business that generates revenue, and the recovery of such an event can negatively impact taxes and fees. From clearing the site, mitigation of any environmental issues, the costs can reach into the tens of millions. It can take a long time for a local economy to recover when a dependable and successful business suffers a large fire.


Aside from the stress on the local economy, a major fire also significantly impacts the people who live in the area. In the case of the plastic plant, the fire left a haze of dangerous smoke in the area that required some residents to evacuate their homes. Large fires in facilities that manufacture, or process hazardous materials have seriously injured or killed innocent residents who happened to live nearby.


The other effect of large fires is the environmental impact. Major fires can send a lot of dangerous chemicals and other pollutants into the air or cause harmful runoff. This can cause a significant environmental impact that may take years to mitigate.

Clients Contractual Obligations?

This can’t be quantified, considering that your competitors are waiting in the wings to take over.

Fire Protection Services from RCL Safety Centre

Whether you need Fire Trucks, smoke detectors, fire extinguishers, or an automatic sprinkler system installed at your commercial property, we have you covered. We have been protecting people and property from fire damage, and our experience shows in our excellent work! We are known for our superb customer service, our expertise, and our reliability.

For more information on how we can help your residential or commercial property, visit us or give us a call at 09057666623, 08098600070, D/Line: 08037036363.

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