When it comes to workplace safety and business continuity, few issues are as critical – and as costly – as electrical hazards. An arc-flash incident or an electrical equipment failure can lead to catastrophic injuries, extended downtime, and major property loss. That’s why commercial insurance companies increasingly expect businesses to follow NFPA 70E and NFPA 70B standards as part of their risk-management and compliance programs.
Leer Electric, Inc. provides expert electrical contractor services throughout central Pennsylvania. Here, we discuss the importance of NFPA compliance.
Why Insurers Care About NFPA Standards
- Reducing risk of loss – Arc-flash events and equipment failures are leading causes of costly insurance claims. Following NFPA guidelines and performing arc flash preventive maintenance dramatically lowers those risks.
- Industry best practice – NFPA 70E (Electrical Safety in the Workplace) and NFPA 70B (Recommended Practice for Electrical Equipment Maintenance) are the accepted industry benchmarks. Insurers lean on them when underwriting and assessing risk.
- OSHA alignment – OSHA references NFPA 70E in its guidance on arc-flash hazards, making compliance both a safety and legal consideration.
What Insurers Typically Require
- Have a written electrical safety program based on NFPA 70E.
- Conduct a formal Arc Flash Hazard Analysis, with proper labeling on electrical equipment.
- Maintain a preventive maintenance program in line with NFPA 70B, including test records and scheduled servicing.
- Perform regular infrared (IR) thermography inspections to detect hot spots, loose connections, or hidden hazards before failure.
- Provide training and qualification for employees who perform electrical work, with clear documentation.
- Track and resolve corrective actions identified during inspections.
NFPA Compliance Expectations
| Topic | Insurance Company Expectation | What You Should Be Prepared to Provide |
| Electrical Equipment Rooms / Switchgear Areas | Clean, well maintained, proper clearances, proper environmental controls, annual IR scanning | Layout drawings, photos, maintenance logs, inspections |
| Preventive Maintenance / Condition Monitoring | Equipment should be subject to regular maintenance and inspection, following recognized standards (e.g., NFPA 70B) | Preventive maintenance plans, maintenance logs, IR thermography reports, test results |
| Compliance with Codes / Standards | HDI’s risk engineers will benchmark vs recognized standards (NFPA, NEC, manufacturer recommendations), and require remediation if a condition “aggravates risk” | Documentation of how your practices align with NFPA 70E and NFPA 70B, or rationale/variance if you deviate |
| Electrical Safety & Worker Protection | HDI likely expects you to follow safe practices (e.g., lockout/tagout, arc-flash assessments) consistent with NFPA 70E or equivalent | Written electrical safety program, training records, arc-flash studies, labels, PPE program |
Real World Example: HDI Global Insurance Company: Major Central PA Manufacturer’s Policy Requirements
Industry: Heavy manufacturing, multiple production lines, switchgear, low/medium and high voltage equipment
Background
- Manufacturer had a few near-misses: hot spots detected in switchgear, some unplanned outages, and increasing frequency of wear-and-tear due to vibration/overload.
- HDI conducted a risk survey ahead of renewing property & business interruption policy.
HDI’s Risk Analysis:
During the survey, the risk engineering team noted:
- No up-to-date arc-flash hazard study. Many panels are unlabeled or have outdated labels.
- Preventive maintenance schedule is inconsistent; some electrical gear has gone well beyond NFPA 70B recommended intervals without service.
- No formal or documented IR thermography program; although sometimes contractors did IR by request, there was no schedule, no reports, or no evidence of corrective action.
- Employee training around energized work and PPE was spotty; qualified person definitions were informal or undocumented.
Insurer’s Conditions
To renew the policy and maintain the current premium, the insurer required that:
- They conduct a full arc-flash hazard study in line with NFPA 70E, with incident energy and working boundary labeling for all panels & electrical equipment.
- Establish and document a preventive maintenance program based on NFPA 70B, including cleaning, tightening, lubrication, etc., per OEM and standard guidelines.
- Schedule IR scanning program with scheduled annual inspections by a certified thermographer, plus documented follow-up, and repair of identified issues.
- Provide training for staff (qualified persons) in NFPA 70E safe work practices, energization permits etc., with documented records.
Outcome
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- Leer Electric performed the arc-flash study and preventative maintenance including IR scanning
- Leer provided Arc Flash Study and Labeled Equipment, provided annual IR scans, and submitted the preventive maintenance plan with records
- In addition to meeting HDI’s compliance requirements, the program has additional benefits: unplanned outages dropped, electrical failures reduced, employee safety incidents declined. long term maintenance costs dropped as repairs are more predictable rather than emergencies.
The Payoff of NFPA 70E & 70B Compliance
- Improved insurability – Demonstrating NFPA 70E and 70B compliance can lead to better coverage terms and lower premiums.
- Reduced downtime – Proactive maintenance and IR scanning prevent costly unplanned outages.
- Safety first – Protects your team from life-threatening arc-flash and shock hazards.
- Peace of mind – Compliance reduces disputes with insurers in the event of a claim.
Is Your Business in NFPA 70E & 70B Compliance?
If you’re not sure where your business stands on NFPA 70E and 70B compliance, ask yourself:
- Do we have up-to-date arc flash labels on our equipment?
- Are we conducting and documenting annual IR scans?
- Do we have a preventive maintenance schedule that meets NFPA 70B standards?
- Can we produce training records and a written safety program if our insurer asks?
Find Expert Electrical Preventive Maintenance Services Near You in Pennsylvania
At Leer Electric, Inc., we help businesses stay ahead of compliance while protecting their people and facilities. Our team provides electrical preventive maintenance programs, arc flash risk assessments, and turnkey safety solutions that align with OSHA requirements and NFPA 70B/70E guidelines. If your central Pennsylvania facility is due for an update — or if you’re unsure whether your current program meets today’s standards — we’re here to help you get there safely and confidently. Contact us today to find out how we can help you.