Who Pays The Fire Losses?

By H. L. WIEDER, Western Manager for U. S. Epperson Underwriting Co-

The first question we usually hear after a lumber mill or yard has been destroyed by fire is "was it fully covered by insurance?" If the answer is affirmative the attitude is taken that all is well, for the insurance com,pany pays the loss.

There is one fundamental principle of insurance which the assured shou.ld never lose sight of. It is this: No matter what kind of insurance you carry or where you carry it, the policyholder pays the fire losses. If the fire losses are excessive, rates-of necessity-go up; if losses are light this will be reflected in an ultimate reduction in your insurance cost.

The manager and his supervising employes are the actual baro'meters of the local insurance cost. If plants are so kept and s'o protected that they do not burn, fhe cost automatically goes down.' If managers and men are carbless ancl lax in supervision of mill property, fire losses ensu,e and costs automatically go up.

During times of any dullness in the lumber market, we who inspect timber plants, are often told that clean-up work, w_hitewashing of buildings, application of oil-resisting paint, additional extinguishers and mor,e fire ,protection facilities will have to be delayed on account of their cost. There should never be.a time when these things are impossible at a going operation for the r,eason that FIRE PREVENTION is one thing that pays its own way no matter what the condition of the market. Let me illustrate: llere is a mill which is not whitewashed. Does the manager know that this lack of whitewash is reflected in his rate? This additional cost in insurance will, in a short time, pay for whitewash. This other plant has a sub-standard pump and sub-standard mains. On account of these deficiencies the insurance cost is increased. If these improvem,ents are made the saving will, in a short time, go far toward paying for the improvements. The benefit in making improvements of this character is not confined to the actual dollars and cents, but of even greater value is that feeling of security against fire at a well-kept and well-protected property.

Employes should take and are taking, an interest in fire prevention to protect their jobs. If each man in a plant's employ knows that in,protecting its property he is also pro. tecting his income, the knowledge makes fire prevention a personal issue with him. Every supervising employe wants to lower his cost. Insurance is an over-head item at all plants. Each foreman should be impressed with the fact that real fire prevention will cut down the overhead in his showing, because it will lower the cost of insurance, that must, of necessity, be charged against his particular department.

There are few worthwhile things that we get for nothing; but plants can be kept and w,ell protected without prohib- itive expense, by systematic fire prevention-which will, in turn, be reflected in your lowered insurance cost.