We remind our customers that compliance with the standards and
legislation is the surest way to avoid falling foul of the detailed
policy requirements used by the majority of insurers.
In addition to the direct consequences of invalidating insurance,
secondary consequences can include falling foul of legislation such as
The Employers’ Liability (Compulsory Insurance) Act 1969.
Specific fire-safety provisions are increasingly common from insurance
companies. For example:
“All premises to be insured…will… comply with the requirements of the
Regulatory Reform (Fire Safety) Order 2005”
Towergate Underwriting
“In respect to your business…it is a requirement of the insurance policy
that you comply with:
1. The Regulatory Reform (Fire Safety) Order 2005 (for England &
Wales)
2. The Fire (Scotland) Act 2005 and the Fire Safety (Scotland)
Reg’s 2006 (for Scotland)
3. The Health & Safety at Work Act 1974…”
Lloyds underwritten Quotedesk Insurance
“[T]he Insured shall maintain all fire extinguishing appliances in
efficient working order”
Royal & Sun Alliance
“The Insured must…comply with all relevant…manufacturers’
recommendations…relating to the use, inspection and safety of property
and the safety of persons”
Allianz/HSBC
“Where frying apparatus is installed…the following equipment [must be]
provided in the vicinity of the fryer in a clearly accessible position:
(a) a fire extinguisher suitable for use on fat or oil fires and (b) a
fire blanket.”
Commercial Risks
Even without specific provisions regarding fire-safety
legislation, almost all insurance policies have this covered with
general provisions regarding duties of care and compliance with
legislation. E.g.:
“You will take all reasonable steps
to protect the property”
Zurich Business Insurance
“The Insured must…comply with all relevant legal
requirements…and other regulations relating to the…safety of
property and the safety of persons”
Allianz/HSBC
“You will take all reasonable steps to…comply with laws, bye
laws or regulations”
Zurich Business Insurance
“You shall take all reasonable precautions…to comply with all
statutory obligations and regulations imposed by any authority”
AXA Insurance
Even without any additional or specific
wording, it is highly likely that a policy holder’s compliance with the
law would form an implied term of their contract with their insurers. In
short: the insurers are likely to be entitled to assume that their
policy holders are acting within the law.
So, it is clear that the breaches of
fire-safety law can have further knock-on implications for the insurance
policies of almost all businesses: A failure to fulfil the new
fire-safety laws’ requirements regarding fire extinguishers, safety
signage, risk assessments, etc. will be a breach of those policies.
Help ensure you’re covered (in every way) by adhering to the
recommendations of the British Standards.
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