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FM Global warns on ‘preventable’ machine failures

Nearly one-third of the 232 large-risk property-related claims FM Global handled last year arose from equipment breakdowns.

A large-risk loss refers to claims exceeding $US3 million ($4.3 million), excluding natural hazards events.

“During the past five years we’ve seen increasing numbers of losses from equipment breakdown, especially in the pulp and paper, chemical, electric utility and mining industries,” Senior VP Engineering and Research Brion Callori said.

“Importantly, our analytics tools, based on thousands of location site visits by our loss prevention engineers over many years, continue to accurately predict large losses.”

About 62% of machine failures stem from lack of maintenance and 25% happen after repairs or during start-up.

“A large number of those equipment breakdown losses last year could have been prevented,” Mr Callori said. “However, in a booming economy, many companies aren’t necessarily taking their facilities offline for preventive maintenance, often choosing instead an expensive roll of the dice rather than a more conservative bet.”

Meanwhile, in a white paper on heritage property, FM Global calls for greater investment in fire protection systems to safeguard irreplaceable structures.

Modern fire protection mechanisms are mostly shunned due to concerns they could affect architectural authenticity.

The blaze in April at Notre-Dame Cathedral is the most recent high-profile heritage catastrophe. Last year a fire at the National Museum in Rio de Janeiro destroyed the largest anthropological collection in Latin America.

“These fires will continue unless there is a commitment to something quite possible but very different,” the white paper says.

“It is vital that we open our thinking to the means by which we can protect such buildings and retain their character but limit the potential significant damage from such fire events.”