How companies can protect themselves against the consequences of fire

When we talk about resilience – how would you define this term in a corporate context, and what role does fire protection play in it?

Ralf Keck: For me, resilience means a company’s ability to be prepared for unexpected events – whether economic, technological, or physical risks – and to respond quickly and effectively. It’s not just about surviving crises, but about emerging stronger from them.
Fire protection is central here because fire is one of the most severe risks to a company’s physical infrastructure. A fire can destroy assets but also cause operational downtime with massive financial consequences.
That’s why I see fire protection as an integral part of any resilience strategy – not just as a technical measure, but as an expression of forward-looking corporate planning. Companies that act proactively in this area build trust – with insurers, employees, and business partners – and secure their business model for the long term.

From your experience, what are the typical consequences of a fire – especially beyond the direct damage?

Ralf Keck: In my experience, the indirect effects are often underestimated – and this is where comprehensive risk management becomes so important.
In many cases, business interruption losses can reach ten times the amount of the actual material damage. This includes long delivery delays, loss of market share, reputational damage, and customer losses – in extreme cases, even a threat to the company’s very existence.
Reputation damage can also occur, especially if the fire can be traced back to insufficient safety measures. This can have long-term effects on market position and even on insurability.

From an insurance perspective: what risks do prolonged business interruptions pose to companies?

Ralf Keck: The direct damage caused by a fire is usually easy to calculate and often manageable. But the consequential damages are far more complex and serious – contamination or destruction of goods by smoke or extinguishing water, production and delivery delays, and reputational losses with customers, suppliers, or even employees.
Such events often result in lengthy business interruptions, which represent a significant risk both for insurers and for companies. The financial impact typically exceeds the actual fire damage many times over. While direct financial losses – lost profit and ongoing costs – are usually covered by business interruption insurance, the residual risk for the company remains high. Even with insurance payouts, losses can be substantial and in some cases lead to insolvency.

The reasons are varied:

• high deductibles,
• underinsurance due to incorrect insured amounts,
• coverage periods that are too short,
• reputational damage with customers, suppliers, or staff,
• customer churn,
• supply shortages after rebuilding.

From an insurance perspective, the duration of business interruption is therefore just as critical as the material damage. Insurers and responsible entrepreneurs must prioritize preventive measures such as emergency planning, redundant production capacities, and alternative supply chains. Companies that are well-prepared in this way are considered more resilient – which has a positive impact on risk assessment and premium structure.

Modern fire protection strategies are increasingly focused on prevention. How can oxygen reduction systems strengthen a company’s resilience?

Ralf Keck: Oxygen reduction systems like OxyReduct lower oxygen levels in a protected area to the point where fires can’t develop. This not only prevents fire outbreaks but also eliminates typical consequential damages from smoke, water, or destroyed infrastructure. In other words, it protects delivery capability and keeps business operations running.
These systems are a prime example of preventive fire protection and a strong lever for corporate resilience.

Can you give us a practical example where early fire prevention avoided greater damage – and downtime?

Answer: WAGNER has been developing and building oxygen reduction systems for nearly 30 years. We’ve installed more than 1,200 systems worldwide, which statistically means that many fires have already been prevented.
Fortunately, we’ve had no fire damage at all, since the technology stops potential fires at the source. Often, we don’t even hear about near-incidents – for example, when an electrical surge damages a cable that under normal circumstances could have sparked a fire.
One customer with a highly automated warehouse for sensitive electronics relied on our oxygen reduction technology. The warehouse was densely packed, with a high concentration of valuable goods. A technical defect occurred in a control cabinet – a situation that would normally have led to a fire. Thanks to the nitrogen-enriched atmosphere, it remained just a harmless heat buildup – no fire, no extinguishing agents, no downtime.

How do insurers view preventive measures such as oxygen reduction? Do they influence risk ratings or premiums?

Ralf Keck: Insurers are increasingly recognizing the value of preventive measures like oxygen reduction, especially in areas with high-value goods or critical infrastructure.
This technology generally has a positive impact on both risk classification and insurance premiums. What matters is that the systems are designed, installed, and operated according to recognized standards – such as VdS or FM Approvals. Close cooperation between insurers, operators, and manufacturers is essential here.
That’s why companies should involve not only their fire protection engineers but also their insurance brokers and providers as early as possible, ideally already during the planning stage of a new building. This ensures that legal requirements as well as business and insurance interests are aligned. Compared to retrofitting later, this approach is much more cost-efficient, strengthens long-term cooperation with insurers, and secures insurability for the future.

In which industries or applications do you see the greatest potential for preventive fire protection systems?

Ralf Keck: Preventive fire protection systems such as oxygen reduction are especially effective where there are high-value goods, sensitive materials, or critical infrastructure. Key areas include automated warehouses – from cold storage and high-bay warehouses to compact systems like AutoStore – as well as data centers and archives. They are particularly suited for sectors such as logistics, pharmaceuticals, textiles, or for sensitive or high-value goods like food, electronics, or historical artifacts, which must be protected from heat, smoke, and extinguishing water.

If you could give companies just one piece of advice for strengthening their fire resilience, what would it be?

Ralf Keck: In line with the saying “The best fire is the one that never starts,” my advice is to take a serious look at oxygen reduction systems. They provide active, continuous, and verifiable protection – preventing fires before they start.
The benefits are clear. Especially in the areas we’ve discussed, companies can significantly reduce residual risks that remain despite insurance.
True resilience comes from a holistic understanding of risk and from the willingness to take responsibility for protecting people, assets, and processes – and with it, the long-term viability of the business. And that begins with fire prevention!