In recent times, Ontario’s construction industry has seen a surge in arson events, with this menacing trend now spreading to BC and Alberta. Apart from immediate safety concerns, these incidents lead to significant financial losses, inevitably driving up insurance premiums for builders.
Mitigating Arson’s Financial Toll: Strategies to Reduce Costs
Arson incidents often involve extortion demands, resulting in increased costs for builders due to profit loss, hefty deductibles, and unsettling “ransom” payments. This escalation in insurance costs affects the entire industry.
Preventative Measures: Tips for Loss Prevention and Cost Reduction
To strengthen your construction projects against arson, consider these preventive measures:
- Conduct thorough end-of-day inspections.
- Securely store or remove flammable materials.
- Maintain rigorous housekeeping.
- Establish effective firebreaks.
- Use fire retardant materials where possible.
Site Security Recommendations: Your Best Defense
The key to combating arson lies in robust site security. Essential recommendations include:
- Invest in weather-proof cameras with 24-hour monitoring capabilities.
- Install monitored alarms with motion sensors.
- Erect sturdy steel fencing around the project perimeter.
- Display clear signage to deter trespassers.
Additional Insurance Considerations: Kidnap and Ransom Policies
Explore Kidnap and Ransom policies to respond to extortion demands resulting from property damage. These policies offer financial protection and should be part of your risk management strategy.
By implementing proactive security measures and exploring insurance options, builders can protect their projects against arson’s rising threat, potentially reducing insurance premiums. Prioritize security for the success of your construction endeavors.
Contact a specialist at Insurance Store today for expert advice on protecting your home building business.
