In recent times, the construction industry, particularly in Ontario, has witnessed a surge in arson events, a menacing trend that is gradually spreading to BC and Alberta. Beyond the immediate threats to safety, these incidents have far-reaching consequences, causing financial losses that inevitably result in increased insurance premiums for builders.
The Financial Toll of Arson: Losses Lead to Increased Premiums
Arson incidents have been linked to extortion demands, where perpetrators seek monetary compensation in exchange for the safety of construction projects. The aftermath includes a ripple effect of increased costs for builders due to loss or delay of profits, hefty deductibles, and the unsettling payment of “ransoms.” This, in turn, escalates insurance costs across the entire industry.
Proactive Measures: Tips to Prevent Losses and Reduce Costs
To fortify your construction projects against the growing threat of arson, consider implementing the following preventative measures:
- Conduct end-of-day inspections.
- Securely lock up or remove flammable and combustible materials.
- Maintain meticulous housekeeping.
- Establish effective firebreaks.
- Opt for fire retardant materials whenever possible.
Site Security Recommendations: Your Best Line of Defense
The ultimate protection against arson lies in robust site security. Here are essential recommendations:
Security Cameras
Invest in weather-proof cameras with 24-hour live monitoring capabilities. Look for cameras offering wide-ranging motion detection, day and night vision, and ensure they have a reliable power backup.
24/7 Security
Install monitored alarms with motion sensors strategically placed throughout the premises. Consider hiring a professional security company and station guards at key entry points for enhanced protection.
Sturdy Fencing
Make your construction site impenetrable by installing sturdy steel fencing, standing at least 6 feet high, around the project perimeter. This cost-effective measure ensures limited access and enhances overall security.
Clear Signage
While active monitoring is paramount, displaying clear signage serves as an additional deterrent for potential trespassers.
Other Insurance Considerations: Kidnap and Ransom Policies
Explore the option of Kidnap and Ransom policies, which can act as a financial safety net in responding to extortion demands resulting from property damage. These policies provide an added layer of protection and should be considered as part of your comprehensive risk management strategy.
By proactively implementing these security measures and exploring additional insurance options, builders can fortify their projects against the rising threat of arson. This not only safeguards the physical integrity of constructions but also mitigates the financial impact, ultimately leading to potential reductions in insurance premiums. Prioritize security to ensure the longevity and success of your construction endeavors.
Call a specialist at Ives-Navacord today to get advice on the best protection for your home building business.
