Managing Fire Protection Risks - Insurance Best Practices for Building Owners

Robert Clark Project Manager, Asset Restoration, Ottawa Community Housing

In today's increasingly complex Building Owner/Property Manager environment, fire and life safety (FLS) compliance extends far beyond meeting minimum fire code requirements. A comprehensive fire and life safety program for compliance not only protects occupants and property, but also plays a critical role in reducing liability when a fire occurs.

I am of the opinion that a Fire Safety Plan is the cornerstone of an effective fire and life safety program. Required under provincial fire codes for many building Occupancy types, the plan serves as the documented roadmap for all FLS maintenance requirements, ensuring staff and occupants understand their roles and responsibilities.

An effective Fire Safety Plan typically includes:

  • provide for the emergency procedures to be followed in case of fire, including
    • sounding the fire alarm,
    • notifying the fire department,
    • Instructing occupants on procedures to be followed when the fire alarm sounds,
    • evacuating occupants, including special provisions for persons requiring assistance,
  • procedures for use of elevators, and
  • confining, controlling and extinguishing the fire,
  • provide for the appointment and organization of supervisory staff to carry out fire safety duties,
  • provide for the training of supervisory staff and the instruction of other occupants in their responsibilities for fire safety,
  • include documents and diagrams showing the type, location and operation of the building fire emergency systems,
  • provide for the holding of fire drills and set out fire drill procedures,
  • provide for the control of fire hazards in the building,
  • provide for the maintenance of building facilities provided for the safety of occupants, and
  • provide for alternative measures to be provided for the safety of occupants during a shutdown of any or all fire protection equipment or systems.

However, simply possessing a Fire Safety Plan is not enough. The document must be current, site-specific, and annually reviewed to reflect changes in building use, occupancy, staffing, or fire protection systems.

One of the most common deficiencies identified during inspections or post-incident investigations is the existence of an outdated plan that no longer reflects actual building conditions.

Fire protection systems are only effective when they are properly Checked, Tested and Inspected. Fire alarm systems, sprinkler systems, emergency lighting, fire extinguishers, standpipe systems, special suppression systems, smoke control systems, Fire Doors and Fire separations all require ongoing inspection, testing, and maintenance for compliance.

Many building owners mistakenly assume that system installation alone satisfies their obligations. In reality, compliance requires continuous attention throughout the life cycle of the building.

Following a fire, documentation becomes critically important almost immediately. Depending on the severity of the event, including the extent of property damage, financial loss, injuries, or fatalities, several parties may become involved in the investigation and recovery process. These can include fire investigators, regulatory authorities (Police, and ESA, Enbridge Gas), engineers, insurance adjusters, and legal representatives.

One of the first requests made by investigators is typically for the building's maintenance records and the most current version of the Fire Safety Plan. Additional documentation often includes fire alarm history logs, fire alarm and sprinkler inspection reports, deficiency reports, service and monitoring records, fire drill documentation, staff training records, and records demonstrating that identified deficiencies were corrected in a timely manner.

The purpose of this documentation review is to determine whether the building's fire protection systems were operational at the time of the incident and whether all required inspections, testing, and maintenance activities had been completed in accordance with applicable codes and standards. Investigators will also assess whether previously identified deficiencies had been addressed, whether staff had received appropriate fire and life safety training, and whether established emergency procedures were followed during the event.

Insurance companies have become increasingly sophisticated in evaluating fire risk. The traditional approach of simply confirming the presence of fire alarms and sprinkler systems has evolved into a more comprehensive assessment of the entire building to review all active and passive fire protection systems, documentation and the fire safety plan to understand and review overall risk management practices.

Insurance risk assessments may occur:

  • During policy underwriting
  • At policy renewal
  • Following large losses or claims
  • When occupancy or operational risks change

Insurers and risk assessors evaluate a buildings overall fire risk by reviewing building characteristics such as age, construction type, occupancy classification, and fire-resistance features, including fire separations and compartmentation systems. They also assess the adequacy, condition, reliability, and maintenance history of fire protection systems, including fire alarms, automatic sprinkler systems, supervisory monitoring services, and other active fire protection measures. Inspection, testing, and maintenance (ITM) records are examined to verify compliance with applicable codes, standards, and regulatory requirements and to demonstrate the ongoing reliability of fire life safety systems. In addition, operational risk factors are assessed, including housekeeping practices, hazardous operations, material storage arrangements, contractor management procedures, and emergency preparedness and response programs, to determine their impact on fire risk exposure and overall loss prevention effectiveness.

In conclusion, Forward-thinking building owners recognize that comprehensive fire and life safety compliance is essential to risk management. By taking a proactive approach, they can reduce liability, enhance building resilience, and protect both people and assets when they are needed most. Please remember “Fire Prevention is the most important fire fighting anyone can do, If the fire department responds, it’s already too late. The loss, damages, injury and even death is already in progress”.

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