Why Insurance Companies Are Requiring Thermal Imaging for Risk Management

As commercial and industrial buildings age, electrical risks increase. Insurance providers are no longer waiting until after a loss occurs to address these risks. Instead, they are requiring property owners to take proactive steps in risk management—and one of the most effective tools they now recommend is infrared thermal imaging.

What Is Thermal Imaging and Why It Matters

Infrared thermal imaging is a non-invasive inspection method that uses specialized cameras to detect heat signatures in electrical systems. These cameras identify "hot spots" that are invisible to the human eye, revealing hidden issues such as:

• Loose or corroded connections

• Overloaded circuits or breakers

• Imbalanced loads in panels

• Failing electrical components

• Motor or transformer issues

By catching these problems early, thermal imaging helps reduce the chance of equipment failure, electrical fires, and costly downtime.

The Insurance Industry's Shift Toward Prevention

Historically, insurance companies would assess risk primarily based on property age, usage, and past claim history. That model is changing. Insurance carriers are now requiring documented evidence that businesses are actively maintaining their electrical infrastructure.

Infrared thermal inspections have become a key part of this strategy. They offer:

• Early detection of problems before damage occurs

• Verifiable documentation of system health

• Proof of compliance with electrical safety standards like NFPA 70B

In many cases, insurers are now making thermal imaging part of their underwriting or renewal requirements.

How Infrared Testing Reduces Liability and Loss

Electrical fires are among the leading causes of commercial property loss. A single missed issue in an overloaded panel can lead to major damage. Infrared testing dramatically reduces these risks by:

• Identifying problems before they result in loss

• Lowering the frequency of claims

• Supporting faster response to emerging issues

• Improving safety for building occupants and operations staff

Many insurance companies now consider businesses that use thermal imaging as lower risk and more compliant with evolving safety expectations.

What Insurance Companies Are Asking For

If your insurance provider is requesting thermal imaging or electrical documentation, here is what they typically expect:

• Annual or semi-annual thermal inspection reports

• Reports conducted by certified professionals using approved equipment

• Follow-up documentation showing that any issues were corrected promptly

• Compliance with standards like NFPA 70B and OSHA electrical safety protocols

Failing to provide this information can result in higher premiums, limited coverage, or even policy cancellation.

How PECO Companies Supports Risk Management

PECO Companies works with commercial, industrial, and property management clients across Massachusetts to deliver insurance-ready thermal imaging reports. Our services include:

• Infrared thermal inspections conducted by certified technicians

• Detailed, easy-to-read reports suitable for insurance documentation

• Flagging of urgent issues with quick turnaround for repair

• Preventive maintenance programs tailored to your building's needs

We understand the expectations of insurance providers and help you stay compliant, prepared, and protected.

Get Ahead of Insurance Requirements

Insurance-driven inspections are becoming more common each year. Instead of waiting for your provider to mandate action, schedule your thermal imaging inspection now and avoid potential policy issues later.

Contact PECO Companies to book your infrared inspection and meet your insurance requirements with confidence.