The Client and Its Challenge
The CEO of this family-owned company, a leading independent food processor, wanted to ensure that he was able to pass the company on to his children and grandchildren. He realized that some of the company’s assets were inadequately protected and that if they burned, he would not have a business to leave to his heirs. He turned to Marsh for advice on how to retrofit the various buildings that currently lacked sprinkler systems. Because of the expected cost involved, the CEO was also interested in obtaining a payback on his property insurance premium.

The Risk Consulting Solution
Marsh consultants surveyed the various non-sprinklered buildings and developed plans to retrofit the buildings. Working closely with the chosen fire protection contractor, Marsh developed a three-phase solution that would be implemented over two years. Marsh consultants reviewed the construction plans and provided information to the client’s insurance company – Travelers – regarding the state of construction and the expected benefits that the construction would bring. The scope of the project included installation of a fire pump house and suction tank, underground piping, and installation of automatic sprinkler protection in approximately 1,000,000 square feet of building.

Results
Travelers reacted favorably to the construction plans that Marsh had developed to retrofit the non-sprinklered buildings with increased fire protection capabilities. As the various construction phases were completed, Travelers reduced the annual property premium which helped provide the CEO with the financial incentive he needed to justify the expense.