ECONOMIC CONSEQUENCES OF FIRE WITHIN COMPANIES

Abstract

Consequences of fires are not limited to material damage, but encompass a wide range of direct and indirect economic impacts that affect the liquidity, productivity, profitability and long-term market position of companies. Fire insurance is one of the key mechanisms for reducing economic risk, enabling companies to increase their resilience and ability to recover from fire. The aim of the research is to gain knowledge about possible differences between companies of different sizes in terms of expected direct and indirect economic consequences, as well as the impact of fire insurance on the level of expected economic consequences from fires in companies. The general research hypothesis assumes that there are differences in the expected direct and indirect economic consequences of a fire between companies of different sizes and different fire insurance status, and that fire insurance has an impact on the degree of expected economic consequences from it. The research sample consists of 60 managers of companies divided by size into 20 small, 20 medium and 20 large, which have different insurance status. The data were collected through a survey questionnaire and analyzed with descriptive statistics, ANOVA and linear regression. The results of the research showed that there are statistically significant differences in the expected direct economic consequences between small (M = 48.80; SD = 2.876), medium (M = 44.70; SD = 3.629) and large companies (M = 39.10; SD = 4.077) (F = 37.375; p<0.01). A statistically significant difference was also found in the indirect economic consequences, where small companies (M = 62.00; SD = 5.858) expect significantly greater consequences than medium (M = 55.90; SD = 4.789) and large (M = 46.40; SD=4.740) (F = 46.518; p<0.01). The results indicate a statistically significant positive impact of fire insurance on expected economic consequences (F=88.770; p<0.01; B=20.149; β=0.778), meaning that insured companies have lower expected losses and a perception of better resilience after a fire. The findings of the research indicate that the size of the company is a significant factor influencing the expected losses, with smaller companies expected to have higher direct and indirect economic consequences, while larger companies more appropriately distribute risk exposure, invest in preventive measures and insurance, which results in increased stability and reduced economic vulnerability in the event of a fire. Although most companies are aware of the importance of insurance, the results indicate that smaller companies are less likely to be insured, as they perceive insurance as an additional cost, which increases their exposure to fire risk. The research contributes to a better understanding of the factors that determine the economic vulnerability of companies and emphasizes the need for a systematic approach to fire risk management, investment in fire protection and insurance as a strategic mechanism for preserving economic stability.