The Heat Is On – Authorities Warn Heatwave Brings Fire Risk

24/07/2018

After a seemingly never-ending winter, summer has arrived in the UK with a vengeance.  The first hose-pipe ban has been announced in the North-West of the country and businesses are being warned to take precautions against the risk of fire.

On 15 July 2018, firefighters were called to the warehouse and offices on Haldane Place, Croydon, after a fire took hold and took two hours to get under control.

Following the incident, a London Fire Brigade spokesperson said:

“The sun is especially strong at the moment, but fires caused by refracted sunlight can happen all year round and are actually quite common.

“Our advice is to make sure that you keep mirrors, crystals, glass ornaments and other reflective items out of direct sunlight at all times.”

Heathrow Airport was also affected by billowing smoke after a grass fire started near the runway in mid-July after the mercury hit 27C.

The devastation fire can cause a business

In mid-summer 2018, the husband and wife owners of a glazing and glass cutting business in Middlesbrough lost almost all their stock in a devastating fire which tore through the industrial shed they used to store their materials.  The owners told reporters:

"We are moving to a new premise in eight weeks’ time and now this has been demolished. It couldn’t have been worse timing.

"The area is still taped off, so we don’t know when we are going to be able to open again. There is some damage to our main building as well.

"We have passed our CCTV footage over to the police to see if we can find some answers to what has happened.

"We don’t know what the future holds now, we are still trying to come to terms with it."

Fire is one of the many disasters that can send a business into insolvency [PM1] , especially if the insurer fails to respond.  However, if a third-party’s negligence caused the fire, there may be a claim which can be pursued by the administrators.  Not only can succeeding in a claim result in more money for creditors, but it can also provide the vehicle for the business owner to trade their way back to profitability.

What can cause insurance to not respond after a fire in a commercial premise?

Many businesses fail to acquire adequate cover under their insurance policies.  Although initially organisations feel confident after taking out an insurance policy, it is only after a disaster such as a fire, the terms and conditions, and warranties and exclusions show the coverage thought to have existed actually fell short of that required.  Another factor which can lead to frustration and financial issues, especially with SMEs dealing with a complex disaster is they often fail to realise how long it can take for loss adjusters to investigate a claim.  Many believe that this is a delaying tactic used by the insurance companies to avoid paying out on a policy, but often it is simply down to heavy workloads.

How businesses can prevent complications with insurance pay outs in the event of a fire

There are several steps a business can take to ensure the tragedy of a business fire is not compounded by the insurance failing to respond.  These include:

• Regularly review your existing insurance policies.  This cannot be emphasised enough.  Diarise a bi-annual review of your insurance and check that the cover is adequate for your business as it is today, not simply when the policy was taken out.  For example, have you recently began storing stock at another location?  Have you taken on additional functions within your factory or warehouse which may require separate insurance cover?  Make sure you check all your policies and update them to reflect changes as your business grows.          

• Keep up-to-date and adequate records of your inventory.  A quick way to ensure a claim is delayed, or worse, becomes subject to a dispute, is to be unable to provide the loss adjustor with the information they need when carrying out their investigation.  Ensure you have all the information required to support not only a claim for loss of stock and/or premises, but also for your business interruption claim[PM2]  which will see you through the period of getting back on your feet.          

• Placing a prompt call to an emergency response solicitor as part of your disaster-management procedure is advisable and could be invaluable.  The action taken in the immediate aftermath of an incident can be crucial to the outcome of any future legal proceedings and insurance claims arising from the incident.  In emergency situations, especially in the immediate aftermath when media speculation is at its height, it is imperative to have robust support on your side, gathering evidence and conducting an independent investigation.

Fire damage disputes and claims

If you are an insurer or an insured property owner of premises damaged by fire which you believe was caused by negligence, you may have a right to claim damages from the responsible party. 

If fire has damaged your property, you may have a claim against not only the person who caused the fire but also the party responsible for the design and construction of your building, if, in either case, negligence started the fire and caused it to spread.

Liability for fire spreading

The Regulatory Reform (Fire Safety) Order 2005 (the Order) provides that any person with a level of control over premises must ensure that the risks of fire are contained and if a fire occurs, that the occupants of the premises can easily escape.  The Order states that fire risks must be managed in your premises and reasonable measures should be taken to prevent the spread of fire, such as sub-dividing the building with fire-resistant materials or installing sprinkler systems.

However, if as a property owner you have met all statutory requirements, it may be possible to bring a claim against the architect or firm which constructed your building, factory or warehouse if an investigation has found latent defects in its construction, which contributed to the spread of fire damage.  This is a very technical area of law and specialist legal advice should always be sought as soon as possible after the event.

Advice for fire damage cases

Whatever the cause of a fire, managing the case efficiently from the start will achieve the best possible outcome. 

One of the most important considerations following fire damage is obtaining and preserving evidence.  An emergency response solicitor will recommend and work with a range of professional experts including forensic scientists, structural engineers, and architects to establish what started the fire and why it spread.  Expert analysis of a fire damaged building, factory or warehouse is critical to your case to establish the cause of the fire, identify potential liability, and understand the full extent of the damage.

Instructing an emergency response solicitor at the earliest opportunity after a disaster will ensure they can put in place the necessary site inspections and investigations to obtain all the information that will be essential in dealing with any potential criminal prosecution, and civil and insurance claims.