Can Sprinkler Installations Reduce Insurance Premiums?
Insurance premiums are typically based on risk — the higher the perceived risk, the higher the cost.
That’s why a homeowner with a burglar alarm often pays less than someone without one,
and why drivers using black box technology may receive cheaper car insurance.
But does this principle also apply to fire protection systems like sprinklers and
dry & wet risers?
The short answer is yes. Many businesses already benefit from reduced insurance premiums
thanks to the enhanced fire safety and property protection provided by reliable sprinkler systems.
How Do Sprinklers Lower Premiums?
Sprinkler systems automatically activate when excessive heat is detected, releasing water directly onto the fire’s source.
This rapid response slows the spread of fire, significantly reducing damage to both the structure and its contents.
In turn, this minimises the size and frequency of insurance claims following fire incidents.
Importantly, sprinkler systems don’t all trigger at once as shown in films —
only the sprinkler heads nearest the fire are activated.
This targeted suppression limits water damage to unaffected areas,
further lowering potential repair and insurance claim costs.
Do Businesses Really Save with Sprinkler Systems?
Absolutely. Industry data clearly shows the financial benefits of installing sprinklers:
- Zurich Insurance Group’s Head of Property, Larry Stokes, stated that
“the installation of sprinklers can cut property premiums by as much as 50%.” - According to the Building Research Establishment (BRE),
a large warehouse (over 10,000m²) without sprinklers faces average lifetime insurance costs of £723,504,
compared to £361,731 with a sprinkler system — nearly a 50% saving. - Worcestershire County Council
found that installing sprinklers across local schools could reduce insurance premiums by up to 65%.
However, concerns about upfront installation costs led several councils to delay implementation.
How Much Can I Save?
Exact savings vary depending on several factors — such as building use, fire risk,
and the quality of the system installed.
The London Assembly Planning Committee
notes that “in general, the better protected the building, the more favourably insurers will look at it.”
However, insurers assess each case individually based on overall risk exposure.
One crucial point: sprinklers must be
properly maintained
to ensure insurance validity. Poorly installed or neglected systems can actually increase premiums due to heightened failure risk.
Do All Insurers Offer Reduced Premiums?
Unlike standard discounts for burglar alarms or vehicle safety devices,
there’s currently no universal policy requiring insurers to reduce rates for sprinkler-equipped buildings.
However, political momentum for change is growing.
In 2019, SNP MP Alison Thewliss called for equivalent incentives, stating:
“People’s insurance premiums can be reduced if they have a burglar alarm fitted;
we need the same incentive for sprinklers.”
Ready to Save?
If you’re looking to improve fire protection for your premises and potentially lower insurance costs,
contact Eversafe Fire Protection.
We design, install, and maintain certified commercial sprinkler systems tailored to your needs.
Get in touch today
or call 01795 713123. You can also email us at
info@eversafefire.com to learn more about our services.