Notes on Fire Prevention and Fire Insurance for Mine Buildings

Until a fire occurs, insurance and prevention work are often looked on as unavoidable necessities, but as insurance is back of all business credit, it is essential to know that in case of damage money will be available to cover the loss; while the interruption of production, often caused by a fire, brings home the realization that if prevention work avoids such an interruption, it is well worth while. Fire insurance is a legal contract guaranteeing the payment of large amounts to an owner, but it is possible there is no other important contract that receives so little consideration. Although previously carried on elsewhere, it is only of recent years that insurance engineering has been actively followed up in Canada, with inspections of an owner's property carried out for his benefit. Now inspections of this kind are made, advice on fire prevention and protection work ?is available, reports with recommendations with regard to the above are furnished periodically, and with this method applied the owner receives the broadest possible cover and security at the lowest cost. Rates are set by the underwriters by rating schedules which charge for defects in a building and allow credits for protection and other favourable features . These schedules are based on the past record of loss of mining properties as a class, so that a fire in another mining property indirectly affects you, but the amount paid is reduced in proportion as your property is improved. The writer feels, from personal experience, that there is no industry where fire prevention receives more attention than the mining industry, and it is a pleasure to advise that, due to this co-operation, some reduction in the basis rates for mining risks is now being made by the underwriters.