An electrical system maintenance strategy can be an effective, low-cost way to reduce your risk of an electrical fire. It can also help you discover the signs of a potential problem before disaster strikes.
The loss
A business’s primary building suffered a major fire after hours, starting in a secondary power panel in an older section of the building. Because the area didn’t have sprinklers or a fire detection system, the fire burned uninterrupted for nearly an hour until a passerby noticed it.
The fire destroyed the building, including machinery and all contents. That added up to $4.8 million in damages and nearly $1 million in business interruption costs. Additionally, indirect costs approached $700,000. These expenses included deductibles, copayment terms, customer loss, reputation damage, and replacing essential employees who left due to a year-long recovery.
The lesson
Fire officials determined the fire was caused by wiring that arced due to loose component connections. Had a qualified electrician performed routine, regular inspections, the problem likely would’ve been found before the fire occurred.