Insurance doesn’t cover everything

Insurance doesn’t cover everything

Each year, hundreds of thousands of fires are recorded in businesses all over the world. A fire can have fatal consequences for a business, but many feel safe because they have taken out a fire insurance policy. However, this often turns out to be a false sense of security.

The reality is that many businesses that have incurred higher costs following a fire, close.

Insurance doesn’t cover operational disruptions or downtime. And if the period during which the company is not up and running as normal is too long, there is a risk that customers will find a new supplier and employees a new place of work. This can affect the company’s competitiveness long after the damage has been done – and in the worst case, lead to closure.

Consequential damage after a fire

When assessing the potential cost of a fire, the extinguishing method that will be used is important to take into account.
Some of the questions it is good to ask when choosing a fire extinguishing solution is:

Is anyone present in the room or building that needs to be protected?
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If there are people present, an Inergen system is the appropriate choice of fire extinguishing method. The extinguishing principle used by Inergen is oxygen displacement. Oxygen displacement lowers the oxygen level in the protected area so that the fire cannot ‘breathe’ and goes out – and as Inergen consists of naturally occurring gases that are in the atmosphere, the extinguishing method is completely harmless to people.
Is there operating equipment, warehousing, installations etc. that may be sensitive to e.g. water, foam or chemicals?
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Extinguishing fire with water, for example, can leave extensive damage and mould, which can be costly to remedy. Foam or chemical based solutions require subsequent cleaning and in many cases it may be necessary to discard items that have been in the room/building.
In order to find the fire extinguishing solution that is just right for your business, it is also worth asking yourself the following:
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- Is your business particularly susceptible to operational disruptions?
- What is the cost of cleaning up after a possible extinguishing operation? – Who will be paying?
- Do you require service 24/7/365?
- And all in all: What will a totally devastating fire cost you?

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By answering those questions, you can choose the right solution and avoid unforeseen and perhaps unnecessary costs in connection with a fire.

Calculation of your investment

When making your financial case for purchasing a fire extinguishing system, it is therefore essential to consider what it will cost you to rectify damage caused by extinguishing the fire as well as loss of business. One is the investment itself – but how quickly does the system pay for itself?

An additional safety feature can be an automatic room extinguishing system (ARS system). As the name indicates, it is a device capable of extinguishing a fire as soon as it is detected – before it can cause serious damage.

The purchase of good fire insurance and a fire extinguishing system that meets the needs of your business are together the best choice you can make.

The next best thing is if they both never get used.

You can get our guide to choosing a fire extinguishing system right here.

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Insurance doesn’t cover everything