Temperature Damage - By The Numbers

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The cost of a high-temperature damage event in a small business setting depends on several factors, such as the industry, severity of damage, and response time. Here’s a rough breakdown of potential costs:

• Electronics & Equipment Damage: Overheating can fry computers, servers, networking devices, or specialized equipment. Costs can range from $1,000 to $50,000 depending on the equipment affected.
• Inventory Loss: Businesses with perishable goods (restaurants, grocery stores, etc.) or heat-sensitive products (pharmaceuticals, cosmetics) could see losses between $5,000 and $100,000+.
• Building Damage: If high temperatures cause fire, melting, or structural damage, repair costs could range from $10,000 to $200,000+.

• Downtime: If operations stop due to a high-temperature event, lost revenue can range from hundreds to thousands per day.
• Employee Wages: Employees may still need to be paid even if they can’t work, costing hundreds to thousands depending on payroll.
• Temporary Relocation: If the business needs to shut down temporarily, leasing costs for a new space could be $2,000 to $10,000+.

• Customer Refunds/Lost Clients: Service-based businesses may have to issue refunds or compensate customers, costing $500 to $10,000+.
• Regulatory Fines & Legal Fees: If a heat event leads to non-compliance (e.g., food safety violations, data center failures), fines could reach $1,000 to $50,000+.
• Lawsuits & Liability: If employees, clients, or suppliers suffer losses due to heat-related damage, legal settlements could be $10,000 to $100,000+.

A minor heat event might cost $5,000 to $20,000, while a major incident could exceed $100,000+, depending on the scope of damage and industry.