Loss Prevention Technologies' Effect on Property Damage Cost and Financial Savings

Evidence from Danish Municipalities



Effect of Loss Prevention, Self-Protection, Property Risk Management, Loss Prevention Technologies, Fire Suppression Systems, Sprinkler System, Automatic Fire Alarm System, Automatic Water Leak Detection Systems, Burglar Alarm, Access Control System, Closed-Circuit TeleVision (CCTV), Building Management System


This paper presents an analysis of loss prevention technology investments across more than 4,000 buildings owned by Danish municipalities to estimate the financial returns from such investments. The study finds that while these technologies significantly reduce the cost of damage, the expected savings are insufficient to finance the investment or operation costs. Therefore, it is important to consider non-property or non-physical damage, such as business interruptions, when making investment decisions to determine if the full gains from the investments exceed the cost.