Storage and warehousing companies have a higher risk of fire than other business operations because they occupy large spaces with potentially hazardous materials, such as combustibles. Because of this increased risk, facility managers must proactively address potential threats to help protect their company’s property, inventory and workforce.
Risk Management Strategies
Risk managers work with businesses to develop customized strategies, such as enhancing fire protection systems, improving facility layouts and implementing employee training programs. By taking a data-driven approach to risk management, companies can strengthen their loss prevention efforts, support regulatory compliance and improve insurability while maintaining safe and efficient operations.
Some of the key components in creating a warehousing risk management strategy, particularly for fire risks, include commodity classification determination, automatic sprinklers, due diligence, fire pre-planning, roof maintenance and water mitigation. Let’s take a closer look at these and other risk management strategies.
Commodity Classification Determination
Commodity classification determination is a critical step in assessing fire risk and ensuring proper fire protection within warehouses and distribution centers. The classification process involves evaluating the type of materials stored, their packaging and how they are arranged, all of which directly impact combustibility and fire spread. Proper classification helps businesses design appropriate fire protection systems, select suitable storage configurations and comply with safety regulations.
These classifications are used in NFPA 13, the National Fire Protection Association’s Standard for the Installation of Sprinkler Systems, to determine the appropriate type and level of sprinkler protection required. For facilities that store flammable or combustible liquids, NFPA 30 provides specific guidance on proper storage, handling and fire protection measures.
Automatic Sprinkler Protection
Sprinklers are central to warehouse fire safety. NFPA 13 provides guidelines for designing and implementing sprinkler protection based on factors such as commodity classification, storage arrangement and ceiling height. It covers sprinkler types, water supply and system layout to help businesses mitigate fire risk and meet fire codes.
In addition to meeting installation standards under NFPA 13, businesses should also follow NFPA 25, which outlines the inspection, testing and maintenance requirements for water-based fire protection systems.
Due Diligence for New Tenant Occupancy
When a new tenant moves into a warehouse or distribution facility, conducting due diligence is essential to help ensure the space meets their operational needs without compromising fire safety. This review should include an assessment of the tenant’s intended use of the space, the types of materials to be stored and any changes in storage methods or equipment that could impact fire risk. Identifying these factors early can help facility managers address potential hazards before operations begin and maintain compliance with fire codes.
Assessing Sprinkler System Adequacy
One key part of the due diligence process is evaluating whether the existing fire protection system aligns with the new tenant’s commodity classification and storage methods. Changes in occupancy, such as shifting from noncombustible goods to high-hazard materials, could impact fire risk and may require modifications to the sprinkler system to comply with NFPA 13 standards.
Facility owners and tenants should work with fire protection professionals to assess sprinkler capacity, verify system compatibility and make any necessary upgrades before operations begin. Addressing sprinkler adequacy upfront can help prevent compliance issues, reduce liability and support ongoing fire protection.
New Construction Fire Protection
Fire safety should be a priority in the early stages of planning a new warehouse, storage facility or distribution center. Incorporating fire safety measures during construction helps businesses align with NFPA 13 standards, minimize risks and avoid costly retrofits later. Key considerations include selecting an appropriate sprinkler system, designing adequate fire barriers and ensuring proper water supply for fire protection.
Working closely with fire protection engineers, local authorities and insurance providers from the beginning of the design phase can help ensure compliance and protection from the start.
Insurer Recommendations
Warehouses, storage facilities and distribution centers can benefit from insurance carrier recommendation assistance. This process involves working closely with insurers to review fire risks, assess existing protection measures and implement suggested improvements, such as upgrading sprinkler systems. Addressing these recommendations proactively may help businesses to reduce insurance premiums, strengthen loss prevention strategies and improve overall insurability.
Fire Pre-Plan with Local Fire Department
Developing a fire pre-plan with local fire departments is a proactive step that can help improve emergency response and minimize damage in the event of a fire. By coordinating with local fire departments, facilities can identify hazards, map layouts and document protection features. Regular site visits, joint drills and updates to the pre-plan can further enhance preparedness.
Human Element Program Review
A human element program review focuses on the role employees play in maintaining fire safety and reducing risk in warehouses and storage facilities. This process involves assessing training, safety practices and emergency protocols. Key aspects include proper housekeeping practices, hot work monitoring, regular fire drills and robust emergency response training for employees.
Regular reviews and updates to these programs help reinforce a strong safety culture, which could reduce the likelihood of human error contributing to fire incidents.
Roof Maintenance
Routine roof inspections can help identify issues like leaks, pooling water, damaged insulation or compromised fire barriers that could impact both property integrity and fire protection systems. Special attention should be given to combustible roof insulation materials, which could increase the rate of fire spread if damaged or exposed.
Roof maintenance should also include maintaining rooftop equipment, such as HVAC units and venting systems, which could pose a fire risk in the case of electrical faults or debris buildup.
Water Mitigation Program
Water damage can impact structural integrity, inventory and fire protection systems. A water mitigation plan should include inspection of drainage systems, identification of potential water intrusion points, prompt repair of leaks and emergency response training for employees.
Effective water mitigation not only protects assets but also ensures that fire protection systems, such as sprinklers and hydrants, remain operational without risk of corrosion or malfunction due to water damage.
How Higginbotham Can Help
Managing fire safety in warehousing and distribution requires ongoing attention to both physical systems and operational practices. To support these efforts, businesses may benefit from working with experienced partners who understand the complexities of fire risk management.
Higginbotham provides insurance and risk management services through a values-driven approach. We work to understand your priorities, streamline your operations and protect what matters most. Connect with one of our risk management specialists today to learn more.
