Although the above case related to a domestic property, it is essential for businesses to hold sufficient commercial property insurance to protect themselves against losses, in the unfortunate event that a fire takes place. Commercial properties in the UK witness approximately 100 fires every day in the UK and insurers estimate that roughly half of all insurance costs are associated with fire claims.
Only last month it was reported that a major fire had devastated a repair business in South Wales, leaving the owner Roger Evans, to face a repair bill of £90,000 as well as massive disruption to his business. Fifteen fire fighters were called to fight the blaze and it caused a tremendous amount of damage to the owner's property. Mr. Evans estimates that it will take five to six months to repair, but fortunately the cost is likely to be covered by his commercial property insurance policy.
As well as ensuring that a business has the correct commercial property insurance, it must also ensure that it adheres to the terms of its agreement with the insurer. Otherwise the company may invalidate its policy. In one case, a business owner let his premises to a friend, whose business differed from the owner's, comprising motorbike sales as opposed to wholesale kitchenware. There was a fire subsequently on the premises and the insurance company argued successfully in court that the owner had invalidated his policy. There is an onus on business owners to disclose all material facts to the insurance company and to represent these accurately.
According to the Fire Safety Order (2006), the responsibility for fire safety lies with the owner or controller of the business. They have a duty to ensure compliance with fire regulations, which in England includes:
• Conducting a fire risk assessment.
• Developing a policy to reduce the risk of a fire.
• Setting up procedures for dealing with a fire and managing fire safety.
• Appointing a ‘competent person' to be responsible for maintaining of relevant equipment.
• Providing fire training and instruction to employees.
• Being mindful of the presence and hazards of dangerous substances.
• Providing adequate escape routes, signs and emergency lighting.
• Conducting regular fire risk assessments.
The penalties for failing to comply with the fire regulations can be severe, including the imposition of fines in excess of £100,000. A variety of businesses have been successfully prosecuted under the regulations, including public houses, high street retail outlets, schools and property management companies. For business owners, it is essential to obtain adequate commercial property insurance and to ensure they adhere to both the terms of both the policy and the fire regulations.
Sources
Only last month it was reported that a major fire had devastated a repair business in South Wales, leaving the owner Roger Evans, to face a repair bill of £90,000 as well as massive disruption to his business. Fifteen fire fighters were called to fight the blaze and it caused a tremendous amount of damage to the owner's property. Mr. Evans estimates that it will take five to six months to repair, but fortunately the cost is likely to be covered by his commercial property insurance policy.
As well as ensuring that a business has the correct commercial property insurance, it must also ensure that it adheres to the terms of its agreement with the insurer. Otherwise the company may invalidate its policy. In one case, a business owner let his premises to a friend, whose business differed from the owner's, comprising motorbike sales as opposed to wholesale kitchenware. There was a fire subsequently on the premises and the insurance company argued successfully in court that the owner had invalidated his policy. There is an onus on business owners to disclose all material facts to the insurance company and to represent these accurately.
According to the Fire Safety Order (2006), the responsibility for fire safety lies with the owner or controller of the business. They have a duty to ensure compliance with fire regulations, which in England includes:
• Conducting a fire risk assessment.
• Developing a policy to reduce the risk of a fire.
• Setting up procedures for dealing with a fire and managing fire safety.
• Appointing a ‘competent person' to be responsible for maintaining of relevant equipment.
• Providing fire training and instruction to employees.
• Being mindful of the presence and hazards of dangerous substances.
• Providing adequate escape routes, signs and emergency lighting.
• Conducting regular fire risk assessments.
The penalties for failing to comply with the fire regulations can be severe, including the imposition of fines in excess of £100,000. A variety of businesses have been successfully prosecuted under the regulations, including public houses, high street retail outlets, schools and property management companies. For business owners, it is essential to obtain adequate commercial property insurance and to ensure they adhere to both the terms of both the policy and the fire regulations.
Sources
- www.thisissouthwales.co.uk ‘Fire-hit firm faces £90k bill for repairs'
- www.shlegal.com ‘There's no smoke without fire'. Report published 29.12.2009.
