All Australian businesses are required to conduct comprehensive fire risk assessments regularly to identify, assess and mitigate workplace fire risk exposures. Keeping business work areas, employees and interactions with the public safe and ensuring your premises are compliant with fire safety regulations is critical in facing the risk of fire incidents.
The responsibility for a business's fire safety lies with building owners and facility managers. Systems and equipment such as fire extinguishers, sprinklers and emergency warning systems need to be maintained in accordance with Australian Standard AS1851, Routine Service of Fire Protection Systems1, the regulatory safety standards that building owners are expected to meet.
Conducting regular fire risk assessments should form an integral component of a business's risk management framework. Doing this helps to identify and avoid loss events in the workplace and the potential of endangering employee health and safety and disrupting normal business operations.
Commercial business operators should have prioritised workplace and people safety processes in place and be aware of the key and common consequences of business fire events, including:
Commercial premises are required to undertake regular fire risk assessments. Not doing so could result in fines and legal proceedings. Stricter action for non-compliance may be taken if the business has already sustained a fire event.
Key lesson and guidance: A combination of the above outcomes can intensify the impact of a single fire incident on a business. The good news is that by implementing a structured and comprehensive fire risk management approach these consequences can generally be lessened or avoided and the claims loss severity reduced.
Although each working environment is different there are a number of causes of workplace fires and common workplace fire hazards to watch out for. Business owners and operators are advised to schedule regular assessments of potential fire hazards and work on ways to eliminate or reduce the attendant risks.
Following are some of the most common hazards in the workplace that can cause fires.
Faulty equipment is a principal cause of a high percentage of fire incidents so periodically checking equipment and an annual test by a qualified electrician are essential. Overloading power sockets is another common cause of electrical fires. Don't plug more than one appliance into a socket, and unplug electrical equipment when not in use.
Improper storage of combustible materials such as cardboard, paper, paints, chemicals, and plastics can lead to workplace fires. Also, consider the spaces where these materials are stored, such as garages, hotels, kitchens, and workspaces where cooking equipment and appliances are used and ensure that any spills are cleaned up immediately.
Ensure your workplace has functional smoke detectors, fire alarms, fire extinguishers, and an evacuation plan. There should also be proper ventilation with equipment such as extraction fans or LEV (local exhaust ventilation) where there is a risk of dust in the air. A maintenance schedule should be followed to ensure repair works when needed.
Bushfires can originate from both human activity and natural causes with lightning the predominant natural source, accounting for about half of all ignitions in Australia3. Including a focus on potential climate and weather-related risks can provide an additional layer of fire risk safety in your response plan.
Fire risk assessments involve comprehensive reviews of key standard fire safety compliance and identification of potential improvements to fire safety management practices. Gallagher risk experts can support and advise on a business's fire risk assessment approach or help to establish one with you.
Fire risk assessments are legal documents that can be referred to in court and having professional guidance can reduce your risks and validate the adequacy of the framework your business is using. The legislation in each Australian state and territory has different requirements which can make managing fire safety compliance for national property portfolios a complex undertaking4.
Using a certified company to complete fire risk assessments can identify issues that could be missed and provide clear guidance and recommendations to improve your fire safety management framework.
Insurance is an essential component in every business's ability to manage and face fire threats. For risk management and advice, and ensuring your property insurance is adequate and up to date, talk to one of our business insurance specialists.
1 Australian Standard AS1851: Maintenance Of Fire Protection Systems, Australian Fire Control, 2 May 2022
2 2019-20 Australian bushfire season, Wikipedia, accessed 5 October 2023
3 Bushfire, Australian Government Geoscience Australia, accessed 5 October 2023
4 Australian Fire Regulations, FCF, accessed 5 October 2023
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