QBE risk insight on Fire Suppression for Electrical Panels
Authored by QBE Senior Risk Manager Adrian Simmonds
Electrical panels are present in most industrial and commercial premises as part of the power supply network and can present a fire risk. Managing these risks effectively is important for any business.
Electrical panels feed and distribute electricity into and around buildings. They differ in size, purpose, voltage and power levels and are critical to business continuity. They can also present fire risks through an electrical fault.
When fires occur in electrical panels the costs associated with the fire range typically between £5,000 and £50,000, where the fire remains within the panel. This is under the threshold of the insurance excess for many companies and cannot be recovered through an insurance claim.
Typical costs include:
- replacement of the damaged electrical panel and associated labour costs
- fire/heat/smoke damage to other equipment and the building structure
- clean-up costs for the smoke and heat damage within the building
- increased costs of working by alternative means at alternative premises or for longer hours
- loss of sales due to business interruption
If a fire escapes from an electrical panel and ignites nearby combustibles or combustible construction there’s no limit to the potential for fire spread. This is one of the reasons insurers ask for all combustibles to be removed from electrical plant rooms or kept at least 1.5 metres clear of any electrical panels or equipment in open areas.
In the worst case, a fire that spreads can result in the total loss of one or more buildings. Historically many multi-million pound losses have been marked with the cause ‘probably electrical ignition’ by Loss Adjusters and Fire Officers. Even if only a small proportion were due to electrical ignition the losses to industry can’t be ignored.
At QBE, we recommend that a business criticality assessment is done for all electrical distribution panels, motor control centres and equipment control panels around your sites to identify those that are most critical to your company. Those that are classed as ‘critical’ against your business criteria should be fitted with in-panel automatic fire suppression.
To help businesses be more prepared, we’ve produced a free factsheet with information on:
- Risk control for electrical panels
- When is fire suppression needed?
- What types of panels is fire suppression needed for?
- Types of fire suppression systems
To download QBE's fire suppression for electrical panels guidance CLICK HERE
Risk management services for QBE customers
QBE helps businesses build resilience through risk management and insurance.
Depending upon the size and complexity of the business needs, QBE customers can access a wide range of risk management services, self-assessment questionnaires and risk management toolkits which are focused on the key causes of claims, and on generating action plans for improved outcomes - including protecting employees, reducing risk and making claims less likely. You can find out more about how QBE helps businesses to manage risk here.
Need to claim? Report it early
Finally, a reminder that if you have an incident and need to make an insurance claim, it’s important that you report it as soon as possible, ideally the same day. Reporting a claim early can save time and help you to receive any claim payments faster, as well as allowing us to help mitigate the cost of third-party claims.
QBE’s Fire Suppression for Electrical Panels fact sheet CLICK HERE
QBE: Protecting your property assets brochure CLICK HERE
QBE European Operations is part of QBE Insurance Group, one of the world’s leading international insurers and reinsurers and Standard & Poor’s A+ rated. Listed on the Australian Securities Exchange, QBE’s gross written premium for the year ended 31 December 2018 was US$13.7 billion.
As a business insurance specialist, QBE European Operations offers a range of insurance products from the standard suite of property, casualty and motor to the specialist financial lines, marine and energy. All are tailored to the individual needs of our small, medium and large client base.
We understand the crucial role that effective risk management plays in all organisations and work hard to understand our clients’ businesses so that we offer insurance solutions that meet their needs – from complex programmes to simpler e-trading solutions – and support them in minimising their risk exposures. Our expert risk management and rehabilitation practitioners focus on helping clients improve their risk management so that they may benefit from a reduction in claims frequency and costs.
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