Ri$k Happens: Fire in the night

Feb. 21, 2021 - By Angela Cady, AIC - Loss Analyst, ARA Insurance

One evening, a passerby noticed flames visible at an empty job site. She quickly called the fire department, which showed up in short order. The fire department was able to get the fire under control, but multiple pieces of equipment were damaged prior to their arrival.

The job-site owner reported the claim to their insurance carrier, which proceeded to investigate the cause of the fire. One of the pieces of equipment, an air compressor, was rented from a local rental store. The job-site owner’s insurance carrier suspected the fire started with the compressor and spread to the rest of the site. They put the rental store on notice.

The rental store owner immediately reported a claim to his own insurance company. The matter is still under investigation. The assigned claims adjuster will review the fire department report and assign an expert to inspect the unit. The adjuster also will secure the pre- and post-rental inspection documentation, maintenance records and the signed rental contract from the insured to help support the investigation.

Remind your employees to document pre- and post-rental inspections and maintenance thoroughly. One never knows what issues may arise or when they will come in handy.

This item, provided by ARA Insurance, Kansas City, Mo., contains safety tips and is intended to help readers better understand and manage risk. For more safety and risk management information, customers of ARA Insurance can log on to ReSource. Access is free, so if you haven’t signed up yet, contact your agent or call 800-821-6580.

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