What is the real cost of a business fire?
We know that fire can be devastating, and we’ve written before about the potential impact on businesses. In this article we want to look at the wider picture and what the real cost might be. Throughout the UK fires start in businesses every day. While some losses will be covered by insurance, many will not so it is difficult to measure accurately the true cost.
Aside from the danger of injury or even death we know that it is not uncommon for businesses that have experienced a major fire to be forced to go into receivership. We also know that smaller businesses in particular, will often find it very difficult to recover and continue to operate.
But the financial effects can go way beyond this. For example, a large fire at a factory can need significant fire service resources to tackle it. Depending on the nature of the products being manufactured there may be the risk of explosion and or toxic fumes which can pose a risk to life for workers in the building and the fire fighters. Even if all employees are able to safely evacuate there can be occasions where smoke from the fire can impact the surrounding area. Roads may need to be closed and people even forced to evacuate their homes. So, the impact can be felt throughout the local community and a number of public services may need to become involved.
If significant damage to the business premises occurs, it may simply not be possible for the business to continue, leaving it unable to service its customers. In these cases, staff may have to be laid off potentially meaning that workers need to claim benefits in the short term. The closure of a business can also have a far reaching effect on the businesses that rely on it, potentially leading to more financial challenges and even more job losses further down the supply chain.
As a business owner you must take your responsibility for fire safety seriously and may want to consider installing a sprinkler system to contain the fire until the fire service arrives, this can help to minimise the damage caused to your premises.
Other important steps you can take are
- Making sure all your employees aware and actively engaged in keeping your premises safe.
- Nominating and training fire wardens. Fire Warden training is recommended for designated people within your business and will provide them with an understanding of fire safety and the responsibilities of the fire warden. This will include ensuring that all staff and visitors evacuate the building safely in the event of a fire, ensuring fire safety equipment is up to standard by performing regular visual inspections, and assisting with fire prevention and the development of an emergency plan.
- Carrying out regular fire risk assessments or using an independent service provider to do this for you.
- Ensuring that you have the appropriate fire extinguishers for your setting and that these are clearly labelled and easily accessible at all times.
- Making sure that all fire exits are kept clear and lit with the appropriate emergency lighting so that people can escape even if power or normal lighting has failed.