Fire is now the costliest claim a small business files, The Hartford finds

Fire is the claim most business owners picture when they think about property insurance, and it turns out to be the expensive one. In its December 2025 small-business claims analysis, The Hartford reported that the average fire claim reached $80,000 in 2025, up from $35,000 in 2015.

That makes fire the costliest claim type in the insurer's data, which covers more than 1 million small-business property and liability policies. The Hartford also says that, adjusted for inflation, the 2015 average would be about $47,600. So prices alone do not explain the jump.

Fire is expensive, not common

In The Hartford's 2015 report, fire touched about 10 percent of small business owners over five years. Burglary and theft touched 20 percent, and water and freezing damage and wind and hail damage each touched 15 percent. Fire is the claim you file rarely and feel for a long time.

Why a bigger claim matters to your policy

A property policy pays up to a limit. The limit of liability is the maximum amount an insurer will pay for a covered loss, according to the National Association of Insurance Commissioners (NAIC). If your limit was set years ago, a fire at today's prices can run into it.

Fire also stops the business. Business income coverage can help with operating expenses during the period of restoration, the Insurance Information Institute (Triple-I) explains, but it generally depends on a direct physical loss to your property.

What to check this week

• Your property limit. Ask what it would cost to repair or replace your building (if you own it), equipment and inventory at today's prices, and compare that number to the limit on your policy.
• Your business income coverage. Ask how long it would pay and whether there is a waiting period before it starts.
• Your lease. If you rent, ask who insures the building and what the lease says you must insure, such as improvements you paid for.
• Your deductible. A deductible is the part of an insured loss that you pay, per the NAIC glossary. Confirm the figure and whether fire has its own.

What to ask your broker

Bring one plain question: "If we had a fire next month, what would this policy pay and what would it leave to us?" A good broker can walk you through the limit, the deductible and any waiting period in a few minutes. If the answer is vague, ask for it in writing.

Costs are rising across the board

Fire is not the only claim getting pricier. The Hartford's 2025 analysis also found that slip, fall and customer-injury claims increased and became more expensive from 2015 to 2025. The insurer said that, in part, reflects the growing influence of litigation and legal system abuse, which has led to higher settlements and costlier verdicts.

One average from one insurer is not a prediction for your shop. Your own risk depends on what you make or sell, how your building is built and what is next door. But the direction is clear enough to justify an hour with your policy and your broker, before a claim, not after one.