Electrical fires threaten businesses nationwide each year, causing property damage, lost revenue and, sometimes, loss of life. There are an estimated 33,470 commercial electrical fires each year in the United States, killing nearly 45 people and costing around $1.36 billion in property damage.1
The petroleum industry faces serious electrical hazards, including flammable gases, vapors and dust. Fires can start from static electricity, equipment failures, overloaded or shorted circuits, improper grounding, and exposure to unprotected electrical systems.
Regular electrical inspections and being risk-aware can help prevent electrical fires. Here are some tactics to consider for your business:
Inspect equipment often for signs of wear or damage.
Hire inspectors who use infrared thermography to spot hot spots.
Look for overloaded outlets, bad connections, and loose wiring.
Stay aware of flammable materials and ignition sources.
Do not overload extension cords or power strips.
Remove items with lithium-ion batteries from chargers when full; do not charge overnight.
Avoid “daisy chaining” (i.e., plugging power strips into other power strips).
Keep electrical cords away from doorways and walkways; do not run under rugs or carpets.
Dispose of damaged or malfunctioning electrical items.
Follow a fire prevention checklist on a regular basis.
If your business gets shocked by an electrical fire, your employees, family, and community could feel the burn from your doors being closed. Action taken today could make a difference tomorrow.
Looking for more information? Reach out to your local Federated Insurance® marketing representative today for risk management resources. Federated® clients can access mySHIELD® for additional industry-specific resources.
1. Electrical Fire Protection. Firetrace International. 2025. http://www.firetrace.com/electrical-fires. Accessed September 4, 2025.
