In winter conditions, fire risks are more prevalent in barns due to the higher occupancy load of livestock and the increased electrical loads due to heating/lighting that may result in overheated circuits and motors. This may result in damage to the electrical equipment and machinery as well as ensuing fire damage to part or all of the building. Adding to that is the decreased access to barns for fire department vehicles. All of this can add up to serious fire losses to buildings, equipment and livestock.
Risk assessment is important for both farmers and insurers. Each of them will have to accept some part of the risk. Can fire risks be accepted by the farmer in the hopes no loss will occur? Will the farmer purchase proper insurance and pass the risk to his insurer? Can the insurer transfer the risk to the reinsurer thereby avoiding the loss themselves?
Perhaps the better way is to reduce the risk before any acceptance or transfer is taken. Then financial damage will be significantly reduced and thereby be more acceptable and cost less. Loss prevention is about reviews and actions that can reduce fire risk and new technology is providing greater ability in loss control.
Prevtech is fast becoming the leader in electrical monitoring for farm buildings and several larger insurers are adding them to their risk tool box. Their inexpensive monitors that watch the electrical grid for any variations in loads and usage, can provide early warning of system failures. Here the saying “An ounce of prevention is worth a pound of cure” is so true.
Following that theme, Canadian Insurance Mutual Professions (cimp.ca) and Prevtech Innovations have arranged for a free webinar for the Ontario Mutual community on February 17th at 11am – 12pm. This webinar should be of interest to mutual staff and brokers who work with the farming community. Topics to be discussed are:
Interested in joining the webinar? Email the list of attendees to firstname.lastname@example.org