Why is transformer oil flash point important for fire safety?

Flash point indicates the temperature at which oil vapors can ignite in presence of an ignition source. Higher flash point reduces fire risk during overheating events, faults, or external fires. It influences siting, containment design, and selection of fire mitigation systems. Oils with higher fire point, such as ester and silicone fluids, are preferred in sensitive environments. Flash point is also used in safety data sheets, handling procedures, and to verify oil quality because contamination can reduce flash point.