Managing Insurance Risks

2. Premises

Some of the most obvious risks are housed within in a business's premises.

2.1 The main risks to business premises are from fire, water damage, malicious damage and weather-related damage.

• Electrical faults are a common cause of fires. Ensure that all electrical items and wiring are checked regularly, in line with the Electricity at Work regulations.
• Arson is also a frequent cause. Remove combustible waste, and control access to vulnerable areas (eg warehouses).
• Water damage is mainly caused by burst pipes and leaks from water tanks. Carry out regular inspections, maintenance and repairs.
• Glass is a favourite target for vandals. Glass windows and doors can be made of toughened glass, or protected with grilles or bars, but check you do not require planning permission to install them.
• Flooding and structural damage to your premises can be caused by severe weather. Make sure gutters and drains are cleared and that roofs are kept in good repair. Find out if your premises are located in a flood risk area and sign up for local flood watch warnings. Find tips on minimising flood damage and how to draw up a flood action plan on the Environment Agency website.

2.2 Improve security systems and procedures.

• Burglar alarms are a good visible deterrent. For reliability, they should comply with British Standard 4737-3.0:1988. The company installing and maintaining them should be approved by the National Security Inspectorate (NSI, 0845 006 3003). Insurers will also consider alarms approved by the Security Systems and Alarms Inspection Board (SSAIB, 0191 296 3242). Look for alarms using REDCARE signalling.
• Ensure burglar alarm codes and keys are only available to authorised persons.
• Ensure all telephone line faults are dealt with immediately. The fault could have been caused by a burglar (to disconnect your alarm from the security call centre).
• Make sure all visitors identify themselves and state who they are visiting.
• Appoint a person to check the premises are secure at the end of each working day.

2.3 A professional approach to managing your premises will prevent many problems.

• Draw up a list of items which need regular inspection and maintenance. For example, roofs, pipes, tanks and stopcocks are all potential sources of leaks.
• If your premises are liable to flood, keep your stock above ground level.
• Ask your local fire prevention officer and crime prevention officer for advice. Smoke detectors, fire alarms, extinguishers and sprinklers are vital to alert people to danger and to prevent fires from spreading.

2.4 Improve safety practices.

• Lock away hazardous and flammable substances in secure storage.
• Smoking has been banned in almost all enclosed public spaces and workplaces in England since 1 July 2007. Ensure your smoking policy is rigorously enforced.
• Undertake regular fire drills, so that all employees are aware of the procedures. Keep a log of the timings and results.