Paying insurance premiums can be an ongoing expense that can strain a company’s finances.
While commercial property insurance is an essential and practical expense, there are ways to reduce premiums while simultaneously reducing the risks of catastrophic damages to your property. One of the most effective ways to do this is to install and maintain an effective fire sprinkler system.
This guide explains why insurance providers assess a commercial property’s fire sprinkler system when calculating premiums, highlights the individual factors that can reduce insurance rates, and explains why equipment like the Shutgun Fire Sprinkler Shut Off Tool can make a profound difference, not just during emergencies, but also when your property is under review by your insurer.
Why Do Insurance Companies Care About Fire Sprinkler Systems?
At its core, commercial property insurance is all about risk assessment. Fires are one of the most significant risks any building faces, and fire sprinkler systems remain one of the best defenses against fires; it only makes sense that insurance providers would place a high importance on them.
Not only can well-maintained fire sprinkler systems contain and fully extinguish fires before they cause significant damage, but they also offer 24/7 protection, ensuring the building has a high level of fire protection, even when it is unoccupied.
While a functioning fire sprinkler system is legally required for most types of commercial properties, many insurance providers will offer discounts and more favourable rates for coverage and properties that have a fully fire code-compliant system.
On top of that, the condition of the system is also essential when assessing rates. If the fire sprinkler system is maintained and inspected at the intervals set out by organizations like the NFPA, it shows that the property owner is making all of the necessary efforts to keep their property safe. Take additional steps to limit damage in the event of a sprinkler discharge.
In fact, some insurance underwriters may even require detailed fire sprinkler system inspection records for high-risk properties, like warehouses and manufacturing plants that store highly flammable materials.
What Factors Influence Insurance Rates?
While there are no set rules for how much of a rate reduction your insurance provider must offer because you have a well-maintained fire sprinkler system, there are some general factors that usually increase the likelihood that your premiums will be adjusted:
Code Compliance
Not only do you have to have a fire sprinkler system installed, but it must be the correct type for the needs of your particular property.
Wet pipe, dry pipe, and pre-action systems are all different options. It’s essential that a fire sprinkler professional has properly assessed your property so that the correct type can be installed.
Sprinkler Coverage
A building with full sprinkler coverage will always receive more favourable rates than one with exposed areas.
The System’s Age and Maintenance History
As mentioned, some insurers will request inspection and maintenance records, especially in the event of a fire.
A poorly maintained or aging system can be a liability rather than a benefit, not only when your premiums are being assessed, but also in a situation where you have filed for a payout.
Reducing Water Damage Risks
While sprinkler systems are designed to reduce fire risks significantly, they also carry the potential to cause water damage.
Whether a fire sprinkler head is accidentally triggered, damaged, or even just leaking, the water damage can be immense, and even cause you to file an insurance claim that is entirely separate from any sort of fire coverage you have.
Here is where the Shutgun Fire Sprinkler Shut Off Tool plays an essential role in protecting your property. This simple, handheld tool can deactivate a fire sprinkler head, so you can stop water damage before it has a chance to destroy your property, inventory, and other assets.
With different versions, like the Concealed Head Shutgun, which can deactivate recessed sprinkler heads, or the Sheared Head Shutgun, which can address damaged sprinkler heads, it’s possible to get just the right tool for your property and sprinkler system.
To ensure your property is safe, order the correct Shutgun Tools for your specific fire sprinkler heads. Then, place one near each fire extinguisher in the building, allowing for quick access in case of a misfire or leak.
Final Words
The type of fire sprinkler system your building is outfitted with and how well it is maintained will always play a significant role in determining your insurance rates, and how straightforward a potential claims process will be.
Ensure your sprinkler system is code-compliant and professionally maintained, and be prepared for water damage by equipping your building with the Shutgun.