Alarming The Insurance Company
The perspective from the Risk Insurance Industry; The
most common problems we see, and recommendations
to overcome them.
Presented by: Nicole LeBlanc
Alarming The Insurance Company
• The Inspection Process
• Insurability
• Common Problems and Recommendations
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The Inspection Process
• Types of Occupancies We See
• Types of Occupancies Where We See Fire Alarms
• Types of Occupancies Where We Require Fire Alarms
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Types of Occupancies We See
• Commercial properties
• Three main areas of focus: fire, crime, liability
• “Jack of all trades”
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Types of Occupancies Where We See Fire
Alarms
• Habitational
• Assembly
Do NOT typically see in:
• Retail/Mercantile
• Manufacturing (unless sprinklered)
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Types of Occupancies Where We Ask For Fire
Alarms
• Life Safety
− Habitational
− Restaurants with apartments above (suppression system
tied in to alarm panel)
• Property
− Water damage in sprinklered buildings (look for alarms on
pressure, flow and gate)
− High valued stock
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Insurability
• The “soft sell” approach
• AHJ for insurance purposes only
• Can be tied to rating depending on insurer
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Rating Sample (Illustrates the Weakness of the
Insurance Industry in Understanding Fire Alarms)
Requirements
− Detectors installed throughout entire building in accordance with NFPA
standards
− Alarm signals are transmitted in a reliable manner
− System is inspected semi-annually by a reliable service organization
− Detectors and transmitters are listed and receiving equipment either
listed or capable of operating in a satisfactory manner. (A listed central
station is acceptable.)
− Duplicate power supplies and circuit supervision are provided in
accordance with NFPA standards
• Full Protection (system fully in accord with NFPA standards) – 20%
• Partial Protection (system not fully in compliance with NFPA standards) –
10%
* For buildings classified as sprinklered multiply these credits by 0.50
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Common Problems Seen By Insurance
Inspectors And What We Can Recommend
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Common Problems Seen by Insurance
Inspectors and What We Can Recommend
• Problem: Absence of alarm protection where required
• Solution: Contact a reputable fire alarm company to
have a CFAA or ECAO licensed technician install alarm
protection in accordance with the OBC and CAN/ULCS524
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Common Problems Seen by Insurance
Inspectors and What We Can Recommend
• Problem: System not maintained
• Solution: Contact a reputable fire alarm company to
schedule annual servicing in accordance with OFC and
CAN/ULC –S536
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Common Problems Seen by Insurance
Inspectors and What We Can Recommend
• Problem: No sticker on the panel, sticker out of date,
company no longer in business, or multiple stickers with
no clear indication as to who is maintaining.
• Solution: Request copy of the CAN/ULC -S536
inspection report.
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Common Problems Seen by Insurance
Inspectors and What We Can Recommend
• Problem: Customer does not have, or can not locate a
copy of the last inspection report.
• Solution: Co-ordinate with the customer, co-operate with
insurers requesting copies of reports/information. Lack
of compliance to produce report = recommendation.
Non-compliance of recommendation = cancellation.
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Common Problems Seen by Insurance
Inspectors and What We Can Recommend
• Problem: Lack of communication between customer,
alarm company, and insurer.
• Solution: Develop and strengthen insurance and
contractor relationships.
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Common Problems Seen by Insurance
Inspectors and What We Can Recommend
• Problem: Battery operated smoke detectors
• Solution: Hardwired detectors.
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Common Problems Seen by Insurance
Inspectors and What We Can Recommend
• Problem: Speaker system that is tampered with in
residential apartments.
• Solution: Silence function.
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Common Problems Seen by Insurance
Inspectors and What We Can Recommend
• Problem: System only sounds locally, where insurance
requires monitoring.
• Solution: Supervision/Connection to a ULC listed
monitoring station.
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Common Problems Seen by Insurance
Inspectors and What We Can Recommend
• Problem: System is monitored by a non-ULC listed
supervisory station.
• Solution: Use of a ULC listed supervisory station in
accordance with CAN/ULC-S561 as required by OBC.
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Common Problems Seen by Insurance
Inspectors and What We Can Recommend
• Problem: Limited number of enforcement agencies
− Fire Inspectors (OFM, municipal fire services)
− Insurance Inspectors
− Fire alarm technicians
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Common Problems Seen by Insurance
Inspectors and What We Can Recommend
• Problem: We don’t know what we don’t know
• Solution: More education for the insurance industry on
fire alarm systems.
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Common Problems Seen by Insurance
Inspectors and What We Can Recommend
• Problem: Fire alarm technician, insurance inspector and
OFM disagree.
• Solution: Consistency would be ideal and generally our
recommendations do support each other however
where a system may be otherwise grandfathered
insurers have the right to request upgrades/retrofits for
insurability purposes.
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Alarming The Insurance Industry
Questions?
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