How Fire Protection Can Reduce the Insurance Premiums for Your Business

Passive fire protection (PFP) isn’t just a cost and time saver in the event of a fire – it provides a measurable increase in your income due to its effects on insurance premiums for your business, property, and assets.

At CPFP we provide quality service and cutting-edge fire safety to protect your building, staff, and business endeavours. In this article we will discuss the effects of fire protection on insurance premiums, how and why they’re linked, and give some suggestions on how to spend the money you could save by utilising our services.

Reduce your insurance premiums by contacting the team at CPFP today to discuss questions, queries, and quotations.

The Financial Benefits of Investing in Fire Protection

Think of passive fire protection as an investment – not just in safety, but an actual financial investment that will increase the amount of money your business has to work with.

How does this work? By having suitable fire protection for your building, you will increase its safety in the event of a fire. This means that insurance companies have more confidence in how your building will stand up in the event of a disaster, reducing the premiums they charge you for their coverage.

Reduced premiums means more money to spend for your business, giving you some nice financial incentives to implement fire protection measures into your buildings. Here are four other reasons to consider investing in passive fire protection:

Passive Fire Protection vs Insurance Rates: A Cost-Benefit Analysis

While passive fire protection has an upfront cost to implement, it is exactly that – passive. This means that after you’ve paid for it, it will keep giving you results and reductions to your insurance premiums.

Paying higher rates of insurance premiums, on the other hand, is a constant cost that you’ll have to put up with. This contributes nothing to your business, unlike fire protection which gives you both a decrease in the rates you’re paying for insurance and an increase in your protection against fire.

When regularly inspected and repaired, you keep your passive fire protection methods in top condition; this removes major costs for major repairs and replacements while keeping your property secured against fire.

The Opportunity Cost of High Insurance Premiums

Then there’s the opportunity cost to consider. This is the cost to your business due to losing out on opportunities and investments that you would have been able to take advantage of had you access to enough funds at the time.

While passive fire protection does come with an upfront cost, it provides ongoing benefits to your insurance premiums. This gives you more money to spend on a regular basis, increasing the opportunities you have access to.

While the opportunity cost of high insurance premiums is, in fact, high, the benefits of utilising passive fire protection to lower these rates is greater still. Get a quote today from CPFP.

Reduced Risk to Your Building

Passive fire protection reduces the rate at which fire spreads. This gives emergency services more time to respond, reducing the overall impact and damage that fire will have on your building. A result of this is a decreased cost of rebuilding and recovering assets that might be lost in a fire, alongside dealing with any structural damage.

Reduced Risk to Staff

Provide your employees with a safe environment in which to work by using passive fire protection. This gives them more time to escape in the event of a fire, with routes and fire doors helping guide them on their way. Increase safety, wellbeing, and the resultant performance levels of having a happy workforce in a secure environment.

Whatever the case, having passive fire protection in your building is beneficial for your company due to its effects on insurance premiums, staff safety, and structural integrity in the event of a fire. Making sure you’re getting good service is a great way to ensure your fire safety systems are held at a high standard, giving you the best rates for insurance and protection for your assets.

Your passive fire protection is only good as your provider – find out more with our article on industry regulations, standards, and accreditations >

The Link between Fire Safety and Premiums

Fire safety and insurance premiums are linked by nature. Insurance premiums increase the higher the risk to your buildings and assets, while fire safety measures like passive fire protection (PFP) reduce the impact and risk of fire to your property.

This can work to provide a synergistic effect where your insurance premiums are lowered due to the implementation of fire safety measures. And, if the unfortunate event of a fire does occur, having PFP measures in place will lower the impact of the fire to your building – increasing what can be recovered while reducing the requirements for rebuilding.

The Factors Affecting the Calculation of Fire Insurance Policies

There are a wide range of factors that affect the ultimate price you will pay for your insurance premiums. This value can be reduced by focusing on improving the factors that can be changed – the easiest of which being fire protection.

Some of the main elements of a building that affect insurance premiums for businesses are:

  • Materials
  • Passive fire protection measures
  • Location
  • Exposure
  • Occupancy
  • Size

These factors, among others, are the defining features that contribute to the rate of insurance premiums for businesses. By having better measures in place, such as a more comprehensive installation of passive fire protection, you’ll enjoy lower insurance rates and greater protection for your building, business, and staff.

Keep your assets safe and keep your insurance rates low with passive fire protection from CPFP. Get in touch to find out more.

How You Should Spend Saved Insurance Money on Fire Protection

With reduced insurance premiums comes an increase in the amount of capital you have to spend on improving your business and the wellbeing of your employees. Money that you’ve previously been setting aside for paying insurance can now be used to greater effect across your endeavours.

Some of our top suggestions for this new source of cashflow are:

  • Staff and community events to promote wellness and wellbeing.
  • Training courses to increase your team’s expertise.
  • Design features like new furniture or bespoke redesign for your office.
  • Provide a nice incentive for workers with a small bonus.
  • Increase the quality of your commodities – better coffee, tea, and biscuits for your hard workers!
  • Reinvest into your business to see profits grow further.

There are many things you can do with the money you save from reducing your insurance premiums – it’s up to you. By utilising passive fire protection like cavity barriers, fire penetration sealing systems, fire compounding, and more, you can increase your profitability while providing a protective environment for your assets, property, and staff.

Save Money with Fire Protection from CPFP

Your insurance premiums are subject to change dependant on the safety of your building. Keep them as low as possible by implementing passive fire protection, decreasing costs while increasing the safety of your property, assets, and people.

Start saving on your insurance premiums as soon as possible, giving you extra capital to spend on the things that matter to you and your business. Get in touch with CPFP to discuss our services or request a quote, or read on with some of our related articles.

Get the most comprehensive protection against fire with our risk assessment checklist >

Learn more about passive fire protection with our article on fire compartmentation in buildings >

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Phone: 0117 450 9943