What Modesto Business Owners Can Learn from Recent California Wildfires

The scenes have become all too familiar: smoky skies, orange horizons, and news reports of communities forced to flee. For years, California has battled historic wildfires, and while we often associate the greatest danger with forested mountains or coastal canyons, the ripple effects are felt everywhere—including right here in the Central Valley. For a Modesto business owner, a wildfire burning miles away can seem like a distant problem. But as we've learned, the impacts are closer than we think.

A wildfire doesn't have to reach your doorstep to threaten your business. It can shut down highways, disrupt supply chains, close your doors due to unsafe air quality, and put your employees in harm's way. Preparing for this growing risk is no longer optional; it’s a critical part of running a resilient and responsible business in California today.

This guide is for Central Valley business owners who want to move from a reactive stance to a proactive one. We’ll explore the real-world lessons from recent fire seasons and provide practical steps you can take to protect your property, your operations, and most importantly, your people.

Understanding the Growing Risk of Wildfires in California

The concept of a "wildfire season" has changed. What was once a predictable few months is now a year-round threat, driven by complex factors that are reshaping our state's landscape. Understanding these changes is the first step toward effective disaster preparedness. It’s not about fear; it’s about awareness.

Why Modesto and the Central Valley are not immune

It’s easy to feel a sense of safety when you’re surrounded by farmland and cityscapes instead of dense forests. However, this perception can create a dangerous blind spot. The Central Valley is highly vulnerable to the secondary effects of wildfires. Smoke from fires in the Sierra Nevada or the Coast Ranges funnels directly into our valley, creating hazardous air quality that can last for weeks.

Furthermore, many local businesses are located near grasslands or river corridors, which can carry fast-moving fires. As our communities expand, the Wildland-Urban Interface (WUI)—the zone where development meets undeveloped land—grows, placing more businesses directly in harm's way. A fire starting in dry grass along a highway can become a major threat in minutes.

Lessons learned from recent wildfire seasons

Recent years have taught us some hard lessons about modern wildfires. They move faster, burn hotter, and are more unpredictable than ever before. We've learned that evacuation orders can come with little warning, and that business owners who wait until the last minute to prepare often suffer the most.

One of the most significant lessons is that operational disruption is as damaging as property loss. Businesses that survived the flames were still forced to close for days or weeks due to power outages, road closures, mandatory evacuations, or air quality that made it unsafe for employees and customers to be out. This highlights the critical need for a comprehensive disaster preparedness plan that goes beyond simply having property insurance.

How climate and infrastructure changes increase exposure

A combination of factors is making the wildfire risk in California more severe. Drier conditions and higher temperatures are creating more fuel for fires to burn. At the same time, our state's aging electrical infrastructure has been a source of ignition for some of the most destructive fires in history.

For a Central Valley business, this means the risk of Public Safety Power Shutoffs (PSPS) is a major concern. Utility companies may preemptively shut down power during high-wind events to prevent their equipment from starting a fire. For a business that relies on electricity for refrigeration, manufacturing, or daily operations, a multi-day outage can be financially devastating. This new reality must be part of every business owner’s planning.

The Hidden Impact of Wildfires on Modesto Businesses

When we see wildfire damage on the news, the focus is usually on burned structures. But for the businesses that are impacted, the damage goes far deeper than what a camera can capture. These hidden costs can cripple an unprepared company, even one located far from the fire itself.

Beyond property loss—disruptions to operations and supply chains

Your business is a complex ecosystem that relies on suppliers, employees, and customers. A wildfire can break these vital links. Consider these scenarios:

• A key supplier in another county is evacuated, halting your production line.

• Highway 99 or I-5 is closed, preventing your delivery trucks from making shipments and receiving goods.

• Your employees are unable to come to work because of evacuation orders in their neighborhoods or because they need to care for family members.

• Hazardous smoke forces you to close your doors to protect your team and the public, even if your building is perfectly safe.

These supply chain disruptions are a significant threat. A business that can’t get its parts, ship its products, or have its people on-site is a business that isn’t making money.

The financial toll of downtime and unpreparedness

Every hour your business is closed costs you money. Downtime results in lost revenue, missed deadlines, and potential damage to your professional reputation. If you don't have a plan in place, the costs multiply quickly. Without access to critical records, you can’t process payroll or contact customers. If your data isn't backed up off-site, a fire could wipe out your entire financial and operational history.

This is where a lack of planning becomes a financial catastrophe. The initial shock of the disaster gives way to the slow burn of trying to rebuild operations from scratch. Many businesses that fail after a disaster don’t fail because of the physical damage; they fail because they couldn't recover from the extended period of non-operation.

Real-world stories of resilience and recovery

On the other side, we've also seen incredible stories of resilience. A local manufacturer had a detailed plan and a backup generator, allowing them to maintain limited operations during a power shutoff. A professional services firm had all its data backed up to the cloud, so its team could work remotely and continue serving clients during an evacuation.

These businesses had one thing in common: they prepared ahead of time. They understood their risks and took concrete steps to mitigate them. Their stories teach us that while we can't control a wildfire, we can control our level of preparedness. Resilience isn’t an accident; it’s the result of careful planning and proactive decision-making.

Proactive Risk Management: Preparing Before the Smoke

The best time to prepare for a wildfire is on a clear day. Proactive risk management means taking steps now to reduce your vulnerability and improve your ability to recover. It involves assessing your unique risks, reviewing your insurance, and creating a solid plan.

How to assess your wildfire exposure

Start by walking around your property with a critical eye.

• Defensible Space: Do you have at least 30 feet of lean, clean, and green space around your buildings? Remove dead vegetation, trim trees, and clear your roof and gutters of flammable debris.

• Building Hardening: Are your building vents covered with a fine metal mesh to keep embers out? Consider fire-resistant roofing, siding, and dual-pane windows.

• Operational Risks: What are the critical functions of your business? Identify what you would need to continue operating in a limited capacity (e.g., power, internet, key personnel, vital records).

• Supply Chain Vulnerability: Map out your key suppliers and distribution routes. Do you have alternate suppliers? What would you do if a major highway was closed?

Key coverages every Central Valley business should review

Your Modesto business insurance program is your primary financial safety net. A standard policy might not be enough. Review your coverage with a local insurance advisor and ask about:

• Commercial Property Insurance: Does your policy cover the full replacement cost of your building and its contents? Be mindful of co-insurance penalties and ensure your limits are up to date.

• Ordinance or Law Coverage: If your building is damaged, local building codes may require you to rebuild to a higher, more expensive standard. This coverage helps pay for those extra costs.

• Debris Removal: The cost to clear a site after a fire can be substantial. Check that you have an adequate limit for this expense.

The role of business interruption insurance

This is one of the most important coverages for wildfire preparedness. Business interruption insurance can help replace lost income and cover ongoing expenses (like rent and payroll) if you are forced to close due to a covered event.

A key component is Contingent Business Interruption, which can cover your losses if a key supplier or customer is shut down by a fire, even if your own property is undamaged. Another is Civil Authority coverage, which applies if a mandatory evacuation order or other government action prevents you from accessing your business. Understanding the triggers and limits of this coverage is essential.

Protecting Your People and Property During a Crisis

When a wildfire threatens, your priority must be the safety of your people. A clear, well-rehearsed plan can save lives and protect your business assets.

Employee safety plans and evacuation protocols

Don't wait for an emergency to figure this out.

• Create an Employee Safety Plan: Establish clear evacuation routes and a designated meeting point. Assign specific roles—who is responsible for checking that everyone is out? Who is the main point of contact?

• Communication is Key: How will you communicate with your team during an emergency? Create a contact tree with multiple methods (text, email, phone). Ensure you can notify everyone quickly if you need to close the business.

• Practice Your Plan: Run drills so everyone knows what to do. A practiced plan is far more effective than one that only exists on paper.

Protecting vital records and digital assets

In the digital age, your data is one of your most valuable assets.

• Back Up Everything: Use a reliable cloud-based service to back up all your critical business data daily. This includes financial records, customer lists, HR files, and operational data.

• Secure Physical Records: If you have essential paper records, store them in a fireproof safe or scan them and back them up digitally.

• Create a Grab-and-Go Kit: Have a box ready with essential documents like insurance policies, bank records, and contact lists that you can take with you in an evacuation.

Partnering with local agencies for coordinated response

You are not alone in this. Connect with local resources before a disaster strikes. Sign up for emergency alerts from your county’s Office of Emergency Services. Introduce yourself to your local fire department and ask if they offer free safety assessments for businesses. Building these relationships now will make communication and coordination much smoother during a crisis.

How a Local Insurance Advisor Can Help You Build Resilience

Navigating wildfire risk and complex insurance policies can be overwhelming. This is where a partnership with an experienced, local insurance advisor becomes invaluable. They can help you translate your understanding of risk into a concrete, actionable plan.

Why local insight matters in disaster planning

A local advisor brings a level of on-the-ground knowledge that a national call center simply cannot match. A Central Valley-based advisor understands the specific weather patterns, infrastructure challenges, and community dynamics of our region. They have relationships with carriers who are experienced in handling California wildfire claims and can guide you to policies designed for our unique environment.

Working with TSM Insurance to customize protection

At TSM Insurance, we're not just providers; we're your partners in risk management. Our approach is built on personal service and a deep commitment to our community. We take the time to sit down with you, understand your business, and analyze your specific vulnerabilities. We then work with you to design a customized insurance program that provides comprehensive protection without unnecessary costs. We help you make sense of options like business interruption insurance and ensure your property limits are accurate, turning a confusing process into a clear path forward.

Turning lessons learned into long-term preparedness

Wildfire risk in California isn't going away. Building resilience is an ongoing process of learning, adapting, and preparing. By taking proactive steps today, you can protect your business, support your employees, and ensure you have the strength to weather any storm—or fire—that comes your way.

If you’d like to review your current disaster preparedness plan or discuss your business insurance program, our team is here to help. Let's work together to build a safer, more resilient future for your business.