The Internet of Things (IoT) refers to a network of devices (e.g., sensors, actuators and trackers) equipped with advanced software and processing capabilities that can connect and exchange information. This technology can provide a wide range of benefits to businesses, including enhancing organizations’ visibility of their commercial properties and allowing them to spot and address possible issues before they lead to losses and costly insurance claims.
Business owners can collect valuable information by installing Internet of Things (IoT) sensors on their commercial properties. This wireless technology boasts extensive data processing capabilities, enabling owners to monitor their properties and receive alerts about potential issues remotely. Concerns can be handled promptly, limiting related damage and reducing the need to file a commercial property insurance claim.
The following are types of IoT sensors to consider for businesses:
- Equipment sensors use vibration, noise and energy consumption sensors to evaluate overall system performance and the health of workplace equipment.
- Fire and smoke sensors work with a property’s existing fire suppression system to send instant alerts regarding fire and smoke detection and coordinate with emergency responders for a swift response.
- Water sensors utilize leak and moisture sensors to detect signs of water flow and identify the source(s) of such issues. These sensors may also be connected to shut-off devices to automatically stop water flow and prevent further property damage.
- Motion sensors use detection sensors to track movement in and around a property, triggering alarms and alerting authorities.
- Temperature sensors measure temperature and humidity, delivering warnings of potential heating, ventilation, and air conditioning issues. This prevents damage to building systems and materials caused by heat and moisture.
Benefits of IoT Sensors
IoT Sensors can provide many benefits for mitigating commercial property insurance claims, including:
- Improved risk management—Through ongoing data collection and continuous monitoring of different building parameters, business leaders can better care for and maintain their properties, lowering the likelihood of costly issues that could cause widespread damage and result in related claims.
- Fewer large claims—IoT sensors can detect damage early and provide immediate alerts, allowing businesses to quickly address the causes and prevent these problems from escalating into catastrophic losses and large claims.
- Boosted security—IoT sensors can improve organizations’ security infrastructures, helping them deter trespassers and identify the individuals who vandalize or burglarize their commercial properties.
- Reduced premiums—IoT sensors can help businesses mitigate their exposure to commercial property damage, potentially resulting in lower premiums.
However, this technology also comes with challenges to consider. The information collection and transmission capabilities of IoT sensors could pose data privacy and sharing issues, as well as cybersecurity challenges. Employers should carefully analyze IoT’s benefits and challenges before implementing them.
To learn more about risk management, reach out to CMB Insurance Brokers. We can provide you with valuable insights and guidance: call CMB at 780.424.2727 or click here to get a quote.