Fired Up

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While American International Group Inc. plans to sell some of its business units to pay off the debt from its taxpayer bailout, the company is holding on to its private firefighting force, the Wildfire Protection Unit.

The service operates on the logic that it’s cheaper to prevent homes from burning down in forest fires than it would be to pay out claims.

“We’re here because budgets for local fire companies have been cut so deep that they cannot provide adequate protection,” said Sam DiGiovanna, who heads the team of contractors. “It’s a shame, but it’s a reality.”

It’s a significant issue for Los Angeles and the rest of Southern California.

“We started the service here in Southern California because of the ever-present danger of fire, because of the close proximity of our clients and because of the value of the insured assets,” said Todd Triano, vice president of AIG’s loss prevention department, which operates the fire service. “The service was created to mitigate damage, not to replace fire departments.”

AIG provides the service to clients who pay more than $10,000 a year in premiums or who have homes worth at least $1 million. The service originated in the L.A. area and now is offered in San Francisco; Orange County; and Aspen, Colo.

If nearby structures are in danger, the AIG firefighters won’t just stand there.

“If there is a home AIG insures and a home next to it is in danger of going up, we will assists local authorities in preventing any fire in the area because it’s the right thing to do,” DiGiovanna said. “It helps everyone involved in these tragedies.”

The nine brigades that are stationed near mountains and canyons between Santa Barbara and San Diego, up from five last year, spray fire-retardant chemicals on houses and nearby brush ahead of fire season and roll out in response to the threat of flames.

AIG, of course, is now infamous as the insurance giant that needed a loan of $85 billion from the government. Despite AIG’s financial problems, Triano said he did not anticipate any significant changes for the firefighting unit.

“During these tough times, the loss prevention division has become an increasingly valuable part of AIG, and we have no plans to cut back any of our offerings,” Triano said.

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