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6 Potential Risks of Lacking Fire Protection Insurance

Thu, Feb 10, 2022 at 9:00AM

6 Potential Risks of Lacking Fire Protection Insurance

As a fire suppression contractor, it is important to purchase fire sprinkler contractor insurance to protect against potential lawsuits. This type of insurance is especially vital for fire suppression contractors who install, maintain, or repair automated systems that detect smoke or fire.

If something goes wrong with a fire suppression system, fire suppression contractors are often held liable for the damage that occurs. Fire sprinkler coverage can mitigate financial losses if serious damage occurs as the result of the failure of a fire sprinkler system. Below are six risks of failing to have a proper fire protection policy in place.

Risk of Client Property Damage Exposure

Installing fire sprinklers requires a lot of work. Damage can occur if tools or supplies are dropped from high places or when walls are cut into, and pipes are damaged as a result.

Fire sprinkler contractor insurance can protect you against lawsuits that result from these types of property damage.

Fire Sprinkler Coverage: Protecting Against System Damage

Fire sprinkler systems that are installed incorrectly could damage a client’s property or fail to work properly in the event of a fire. 

Contractors who install sprinkler systems are held to a high level of care because their job requires a high degree of trust. If a fire occurs and the system malfunctions, significant damage can result. Fire sprinkler coverage can mitigate some of the potential liability you may otherwise face.

An even greater level of exposure arises when such systems are installed in places where people cannot escape without help, such as in a prison or hospital. Warranties and guarantees offered by the contractor must be carefully read and understood by a client. Any maintenance work offered by the contractor should be fulfilled as described in the contract, as well.

Workers’ Compensation Risks

Contractors who work on the installation of fire sprinklers may be at risk of harm during their work. Risk is especially present during activities such as cutting, welding, or drilling. 

Workers who install fire protection systems must be properly trained. While accidents do occur, having proper insurance in place can reduce the chances of financial losses.

Risk of Loss of Equipment by a Contractor

While most equipment must sometimes be specially ordered for clients, basic tools and equipment get lost by contractors. 

Since a fire installation system is electric, it is subject to damage by water, smoke, or fire. Fire protection insurance can cover any property losses of equipment. 

Risk of Crime by Contractors

Contractors often have access to secure places in a client’s home or place of business. All workers should be licensed and bonded and be given a background check before you allow them to work on a client’s site.

Equipment Damage Liability

If faulty equipment is installed, it will need to be replaced. Fire protection insurance can ensure that any installed equipment is protected and can be replaced if it is found to be faulty. Proper maintenance and regular checking of fire suppression systems is required. 

With the right insurance policies in place, you can protect your interests and your business. Contact Insurance Solutions of America to learn more about protecting your assets.


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