Protecting the Protectors: Insurance and Risk in Fire & Life Safety

Fire protection and life safety professionals carry an extraordinary responsibility. The systems we design, install, test, inspect and maintain are expected to perform when they are needed most. When they do not, the consequences can be significant for building occupants, property owners, contractors, technicians and the broader community.

In this edition, we feature two timely articles examining risk and insurance from complementary perspectives. The first focuses on building owners and property managers, emphasizing that effective fire and life safety risk management extends beyond simply meeting minimum code requirements. Maintaining a current Fire Safety Plan, completing required inspection, testing and maintenance, correcting deficiencies and retaining appropriate documentation are all essential components of a comprehensive fire and life safety program. Insurers are also increasingly evaluating these broader risk-management practices when assessing a building’s fire risk.

The second article addresses an equally important issue for fire alarm contractors and technicians: having insurance does not necessarily mean having the right insurance. Fire alarm companies operate in a high-risk environment where a system’s failure to perform its intended function can result in substantial property loss and potentially serious injury. The article highlights possible gaps in standard commercial general liability coverage and the importance of understanding “failure to perform” coverage. It also identifies the different exposures associated with design, installation, inspection and testing, servicing and monitoring, noting that design activities may create professional liability exposures requiring errors and omissions coverage.

Both articles reinforce that insurance is only one part of effective risk management. Quality workmanship, adherence to applicable codes and standards, clearly defined scopes of work, appropriate testing and inspection procedures, deficiency reporting and comprehensive documentation all contribute to reducing exposure. Following an incident, service records, inspection reports and other documentation may become critical in demonstrating that required work was properly completed.

I encourage companies involved in the design, installation, testing, inspection and maintenance of fire alarm systems to review their insurance coverage with a licensed insurance professional familiar with the fire protection and life safety industry. Confirm that your coverage reflects the services your company and technicians perform and understand the applicable terms, limits and exclusions.

Our industry exists to manage risk and protect others. We should apply that same diligence to protect the professionals and organizations entrusted with delivering these critical life safety services.