August 5, 2025
Helping Insurance Providers and their Customers Reduce Electrical Risks
6 Min. Read
Every day, thousands of commercial buildings are exposed to electrical hazards that can disrupt operations, compromise safety, and result in costly repairs or insurance claims.
Although the overall frequency of electrical fires has declined in recent years, these incidents continue to present serious risks—and insurance providers are taking notice. Insurers are increasingly taking electrical risks into account when determining rates and setting premiums.
If you own or manage a commercial building, implementing a proactive electrical maintenance strategy is essential. It not only reduces the risk of downtime and property damage but also strengthens safety and regulatory compliance—protecting both your assets and your bottom line.
Common Electrical Hazards in Commercial Properties
The size and complexity of electrical systems in commercial buildings create unique safety challenges. As a result, these properties are often held to stricter electrical standards, which increases the risk of non-compliance if issues go undetected and unresolved.
While many commercial buildings face similar types of electrical concerns, additional risk factors can emerge depending on a property’s age, design, and historical infrastructure modifications.
Key Electrical Risks in Commercial Buildings
Damaged Wires and Loose Connections
In large commercial buildings, damaged wires and loose connections can often go unnoticed until a critical failure occurs without regular inspection from a qualified professional.
Additionally, without routine risk assessments, your electrical system may have exposed or deteriorating wiring that heightens the risk of electric shock, short circuits, or electrical fires.
The underlying danger is that damaged wiring is unable to safely conduct current, which can cause electricity to deviate from its intended path—potentially energizing nearby surfaces or discharging into the ground.
There are safety mechanisms designed to address these conditions, such as arc-fault circuit interrupters (AFCIs) and ground-fault circuit interrupters (GFCIs), which cut power upon detecting abnormal electrical behavior. However, in older buildings, these devices are frequently missing, outdated, or no longer functioning as intended, leaving systems vulnerable to critical failures.
Complex Electrical Systems
Your commercial facility likely contains multiple electrical systems that have evolved over time—often with modifications made to aging electrical panels or suboptimal circuit configurations.
In many cases, these older circuits do not align with current National Electrical Code (NEC) requirements. This makes commercial electrical maintenance more complex and increases the likelihood of overlooking concealed hazards.
The situation is further compounded by the ongoing nationwide shortage of certified electricians, which can make it difficult to find qualified professionals with the experience necessary to assess and service commercial systems accurately.
Higher Electrical Loads and Lack of Visibility
Commercial facilities typically operate under higher electrical loads. Adding new appliances or systems—particularly in multifamily buildings or office spaces—can exceed panel capacity, triggering frequent breaker trips or, in severe cases, overheating and fire.
Additionally, due to the sheer scale of many commercial systems, even minor issues can escalate rapidly, causing significant damage. Buildings with three-phase power face elevated risks, as higher voltages increase the likelihood of overheating and arcing faults.
Tenant behavior can also contribute to safety concerns. In many commercial environments, occupants add appliances or equipment without property management oversight. This can overload circuits or introduce faulty devices. In office settings, overextended power strips and improper outlet usage are common and often go unnoticed, further increasing the chance of electrical failures.
Which Factors Increase Your Property’s Electrical Risks?
Since not every property faces the same level of electrical risk, scheduling routine electrical inspections is the best way to understand your building’s specific vulnerabilities.
Older Properties
Older buildings tend to present more substantial electrical risks—particularly when preventive maintenance has been inconsistent.
If you’re unsure how frequently to maintain different electrical systems, the National Fire Protection Association offers detailed guidance through its NFPA 70B standard. It’s important to note that neglecting these recommendations can place your building in a higher risk category.
The NEC is updated every three years with new guidelines for circuit design, shutoff locations, safety devices, and more. The older the property, the more likely it is to fall short of current NEC and local code requirements.
The NEC, AHJs, and Insurance
While the latest edition was released in 2023, some states still follow previous versions, but this may not be adequate for your Authority Having Jurisdiction (AHJ) or insurance provider.
Comparing your building’s electrical infrastructure to the most current code is a reliable way to identify outdated or hazardous components.
Meeting current electrical codes should be a top priority. Failing to do so could void your insurance coverage and leave you personally liable for damage caused by electrical faults.
Shortage of Qualified Electrical Contractors
Qualified electrical contractors are in high demand, and the ongoing labor shortage has made it increasingly difficult to secure skilled professionals for commercial maintenance.
As a result, some property owners rely on general maintenance staff or other underqualified individuals for electrical repairs or inspections. This introduces significant risk, and from an insurance standpoint, this is a serious liability.
Allowing unlicensed or unqualified personnel to inspect, repair, or upgrade your electrical systems may be considered a safety violation and could result in denied claims or canceled coverage.
How to Reduce the Risk of Loss from Electrical Hazards
Waiting until electrical systems fail can be both costly and dangerous, for your occupants and the integrity of your infrastructure.
Instead, adopt a proactive approach with a regular electrical maintenance program. After an initial risk assessment, you can identify which electrical devices to replace or upgrade—prioritizing those that are damaged, outdated, or out of compliance.
Next, you should outline the appropriate inspection intervals for each system based on NFPA 70B recommendations and establish a formal process for reporting electrical concerns so a qualified contractor can respond quickly.
Partnering with experienced, licensed professionals ensures you have trusted local contractors available when electrical issues arise. PowerForce by Qmerit™ simplifies this process by offering streamlined access to vetted electrical contractors for ongoing support.
Finally, consult with your insurance provider regarding your property’s electrical safety protocols. Many offer resources to improve risk management or may extend policy discounts for meeting specific electrical safety standards.
Streamline Commercial Electrical Safety with PowerForce by Qmerit™
PowerForce by Qmerit™ is your centralized platform for commercial electrical services. With just a few clicks, you can submit a work order and connect with a licensed, local electrician dispatched directly to your facility.
With a network of over 1,500 vetted, licensed, and insured electrical contractors, PowerForce by Qmerit™ ensures consistent, high-quality service and access to the right expertise—whether you need routine maintenance, emergency repairs, or system upgrades.
Staying compliant with NFPA 70B, NEC, OSHA, and local codes is made easier. Fast work order fulfillment keeps your maintenance on schedule, while expert contractors ensure every job meets the latest safety standards, so your team doesn’t have to manage regulatory complexity alone.
PowerForce by Qmerit™ helps reduce electrical risks, potentially making you eligible for cheaper insurance premiums. The platform streamlines your workflow for cost savings, and you can always count on Qmerit contractors to deliver high-quality work.
Simplify Your Commercial Electrical Projects with PowerForce by Qmerit™
Don’t let the complexity of managing electrical work across multiple locations or even a single site slow you down. With PowerForce by Qmerit™, you gain a trusted, single-source solution to streamline every aspect of your projects—from routine maintenance to large-scale installations.
Remove the stress of finding and vetting a new electrician for each project or having to manage multiple contractors across the country. Our easy-to-use platform puts the power back in your hands so you can easily navigate your projects to success.
Enjoy seamless coordination, expert oversight, and consistent quality across all your sites, ensuring your business operates efficiently and stays ahead in a rapidly evolving market.
Learn more about PowerForce by Qmerit™ and take charge today.
