Infrared Thermography for Electrical Systems

A Mandated Risk Control That Protects Property and Profitability

Electrical system failures remain one of the leading causes of property damage and business interruption across commercial and industrial facilities. Infrared thermography is a powerful, preventive diagnostic tool—and now, more than ever, it’s becoming a mandated best practice for insurers, building owners, and facility managers.

In this post, we explore the scale of the problem, the role infrared thermography plays in mitigating it, and why insurers and loss control professionals should consider this technology a baseline requirement.

The Problem: Electrical Failures Drive Massive Losses

Electrical distribution issues are responsible for a significant share of commercial property fires and explosions. According to claims data from FM Global and Allianz, fire and explosion account for 45–55% of large commercial losses. Of those, electrical faults are among the top ignition sources.

The NFPA (National Fire Protection Association) further reports that 13% of structure fires in industrial facilities stem from electrical distribution and lighting equipment—typically in energized, concealed systems where failures are both hard to detect and potentially catastrophic.

Bottom line: These losses are predictable, preventable, and disproportionately expensive.

The Solution: Why Infrared Thermography for Electrical Systems Works

Infrared (IR) thermography offers a non-intrusive, highly effective method for identifying hidden electrical risks—before failure or fire occurs. It detects:

• Overheating conductors

• Loose or corroded connections

• Imbalanced electrical loads

• Failing electrical components

The 2023 revision of NFPA 70B formally recognizes condition-based maintenance as the gold standard—and infrared thermography as a core strategy for electrical preventive maintenance.

Facilities with IR inspection programs experience up to 80% fewer unexpected electrical failures, according to EPRI and IEEE reliability studies.

Why Insurers Should Care

From an insurance and loss control perspective, infrared thermography offers exceptional return on investment:

• Cost of IR inspection: $2,000–$10,000 per facility per year

• Average insured loss from an electrical fire: Over $1M, plus extensive business interruption

• ROI: Studies by Hartford Steam Boiler (HSB) and NFPA show a 4–10x return through avoided losses

Portfolio-wide impact: Each avoided million-dollar claim saves the insurer far more than indemnity—think reduced litigation, lower claims handling costs, and improved reinsurance positioning.

Industry Alignment: NFPA, OSHA, FM Global

This is not just a good idea—it’s becoming industry standard:

• NFPA 70B (2023): Establishes annual IR inspections as baseline practice

• NFPA 70E & OSHA: Allow IR scans under energized conditions using windows or barriers—reducing worker exposure while ensuring compliance

• FM Global: Strongly supports condition-based maintenance and diagnostic technologies like thermography

For insurers and building owners, implementing or requiring IR scanning is no longer “innovative”—it’s simply aligning with modern best practices. By requiring annual infrared scans of your insureds’ electrical systems, you dramatically reduce one of the most expensive property loss exposures in your portfolio. Electrical fires are preventable, and NFPA 70B gives you the framework to act. You’re not just promoting safety—you’re preserving profit.

Call to Action

• Insurers & Underwriters: Make annual IR scans part of your risk improvement plans or offer premium credits for compliance.

• Facility & Risk Managers: Adopt infrared thermography as a core element of your electrical maintenance program.

• Brokers: Present IR as a win-win—fewer claims, lower risk, safer facilities, and potentially reduced premiums.

Final Word: Prevention Pays

At Assured NDT, we specialize in professional infrared thermography inspections aligned with NFPA 70B, helping businesses, insurers, and facilities identify and mitigate electrical risk before it becomes loss.

Infrared thermography for electrical systems is the single most cost-effective step your business or portfolio can take to prevent fire, explosion, and business interruption.