Businesses pay high price for neglecting fire safety
July 14th 2010
Too many businesses are failing to take fire safety seriously resulting in massive fines and major disruption, according to the Chartered Institute of Environmental Health (CIEH).
The Regulatory Reform (Fire Safety) Order 2005 (FSO) replaced more than 70 pieces of fire safety legislation and came into force in October 2006. However, this attempt to simplify legislation has not had a significant impact on compliance, with courts ordering individuals and companies to pay more than £1m fines and costs last year in London for breaches of the FSO.
Those prosecuted ranged from huge, multinational companies to small, one-person businesses. High-profile cases include an oil company being fined £300,000, and a high street retailer paying more than £400,000 — the largest ever fine imposed under the FSO. Hotels, pubs and restaurants have also experienced heavy sanctions.
The cost of fire damage also stands at a record level, with insurers paying out over £1.3 billion in 2008 alone.
Commenting, Des Hancox of the CIEH, said:
“Businesses can suffer catastrophic damage as a result of a fire. Apart from the human risks associated with fires, organisations often experience prolonged disruption to daily activity and incur significant costs – not to mention the potential for reputational damage.
“Fire safety compliance can be overlooked, in particular during tough economic times. As these figures show, this can be a false economy – spending on fire safety should be seen as an investment rather than a cost”.
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