In today’s challenging insurance market, it’s essential to do everything you can to secure the best insurance rates. Safeguarding your commercial property from fire hazards should be a top priority. Implementing fire safety measures in the workplace is important because it will reduce risks and improve insurance premiums. Review the following sections to learn important fire safety information and the various types of fire hazards, and make sure you are paying attention to everything applicable to your operations.
1. Regular Inspections and Thorough Housekeeping
Schedule regular building inspections to address potential risks. Check for electrical issues, fire hazards, and any housekeeping issues. Keep workspaces clutter-free to minimize fire hazards. If your insurer sends out a risk control consultant to make an assessment, poor housekeeping is a huge red flag. If you’re in need of a fire safety risk assessment, sign up with Smarter Risk and use our automated self-service assessment with a built-in checklist (https://app.smarterrisk.com/signup).
2. Maintain Sprinkler Systems and Extinguishers
A properly maintained and fully operational sprinkler system can greatly slow fire and minimize property damage. Annual inspections—at a minimum—are essential to ensure its functionality. Maintain documentation and share it with your insurance provider. Properties with a sprinkler system pay a significantly lower property rate. Be aware that failing to maintain the sprinkler system could mean your insurer rates your property as if there is no sprinkler system! Meaning you pay higher rates.
Remember your fire extinguishers. Ensure you have the appropriate number and that they are tagged, hung, and inspected by a third party annually. If you need assistance, contact a local fire inspection company. They can advise you on the required number and address any maintenance issues.
Companies engaged in commercial cooking and spray-painting operations must arrange semi-annual inspections of their specialized fire extinguishing systems.
3. Safe Storage: Flammable Liquids and Oily Rags
Store flammable liquids in UL-listed cabinets or fire rooms that conform to NFPA 30. Proper storage significantly lowers your fire risk. The fumes from oil-soaked rags (a common and often overlooked hazard) can sometimes cause spontaneous combustion. Oily rags should be discarded in metal containers with self-closing lids.
4. Take Precautions: Welding and Compressed Gases
Perform welding in designated areas or under a hot work permit. This strategy helps to limit the fire risk associated with welding. Store compressed gas bottles upright, securely, and with caps on. Maintain a distance of at least 20 feet between welding gases and oxygen cylinders. Keep propane cylinders outside in locked metal cages. Protect above-ground fuel tanks from vehicular damage using bollards or concrete and metal posts.
5. Understand Your Building’s Construction Classification
An often-misunderstood aspect of property insurance rates is the construction classifications. Ask your agent to verify that your building is rated correctly. A building that is not classified correctly could cost you money.
Metal building classifications are widely misunderstood. Some are metal-on-metal and are properly classified as “metal buildings.” Others are metal on wood and are rated as frame buildings. If a metal-on-metal building has an interior wood paneling (or other combustible material), it could and should be classified as a “frame” building. This fact will raise your rates. If you’re in this situation, consider removing the interior finish. Then, request your building be re-rated—it could lead to significant insurance savings.
6. Workplace Fire Safety Training: Lighting, Drills, and Fire Extinguishers
Emergency lighting, exit signs, and regular fire drills can ensure a safe evacuation. Train employees to use fire extinguishers. Review the PASS technique: Pull, Aim, Squeeze, Sweep. Personnel trained in the use of fire extinguishers can mean limiting or avoiding a significant fire insurance claim.
7. Fire Alarms
Investing in a monitored fire alarm system can positively impact your insurance rates. Alternatively, a local alarm could suffice if an employee is on-site 24/7. Either way, ensure your insurance company knows what you have in place.
8. Pre-Planning with Your Local Fire Department
Involve your local FD in your fire safety plans. Most departments will walk through your facility at no charge. Provide them with a diagram showing entrances/exits, flammable liquid storage, welding areas, and any other areas with fire hazards. They will look to ensure there are no issues with fire truck access to the property. Their recommendations can ensure the safety of your employees and first responders. In addition, their advice can reduce the potential property damage.
9. Keep Your Insurer in the Loop
Communicate your risk management efforts with your insurer and provide documentation of your proactive measures during the quoting or renewal process.
In conclusion, proactive risk control measures not only safeguard lives and property but also play a crucial role in securing and maintaining competitive property insurance rates. Your prevention efforts are the linchpin to navigating the challenges of the hard insurance market. Take action now to protect what matters most.
To explore other ways to make your workplace safe, read our blog “Safety Made Simple: A Small Business’ 2024 Beginner’s Guide to Safety Program Elements While Developing a Safety Program” at https://smarterrisk.com/english/blog/safety-made-simple/ and “Safety Pays: How Risk Control Benefits Probabilities and ROI” at https://smarterrisk.com/english/blog/safety-pays/.
