Food factory fire risk: urgent action needed

By Noli Dinkovski

- Last updated on GMT

Food factory fires: urgent action is needed to reduce the risks
Food factory fires: urgent action is needed to reduce the risks

Related tags Insurance

Food and drink manufacturers should be taking proactive measures to reduce their workplace fire risk, following the publication of 14 new core requirements by the Fire Protection Association (FPA), an insurance broker has warned.

Firms that demonstrate they have taken “all conceivable steps to implement a loss prevention and business recovery programme”​ based on the requirements, were likely to be looked on more favourably in the event of a claim, said Garry Moseley, group leader of Arthur J Gallagher’s specialist Food and Drink Practice.

Moseley stressed that effective fire prevention was not only an “intrinsically important management issue but also a critical one for firms to demonstrate to insurance companies”.

In its ‘Food for Thought’ white paper, the FPA highlighted 14 core areas where companies could take action to prevent fires.

Strict smoking policies

These included: protection against arson; strict control of hot work permits; regular maintenance of electrical and lighting systems; effective waste management; heightened premises security; and the adoption of strict smoking policies.

Howard Passey, principal consultant at the FPA, said his organisation had been working closely with the insurance industry and food manufacturers for a number of years.

“Our experience has shown that through taking action in key areas, the risk of fire can be reduced. We would always recommend seeking advice from your insurer and a fire safety expert before acting,”​ he said.

Fire safety legislation that came into being in October 2006 for England and Wales firmly placed the onus on employers to be compliant with the Regulatory Reform (Fire Safety) Order 2005.

Moseley said identifying and analysing conditions that could result in property damage was a key area where employers could help themselves.

‘Fire spread potential’

“Assessing the fire initiation and fire spread potential are crucial areas for organisations, as well as ensuring safety and control devices and equipment are maintained and operating procedures installed,”​ he said.

“Communication failure, loss of administrative function, the costs of rebuild, and the time it will take to build the business back up, are all key considerations that should be included in a company’s action plan.

“There are so many different elements that should be included in a loss prevention and business recovery programme, and proving that all these have been actively considered will carry a positive significance for an underwriter assessing fire risk in your company.”

Download the FPA Food For Thought​ White Paper here.

Meanwhile, last week two engineers were hospitalised, after suffering smoke inhalation,​ during a fire at 2 Sisters’ Fox’s Biscuits factory in Uttoxeter, Staffordshire.

Related topics Hygiene, safety & cleaning

Related news

Show more

1 comment

Factory Fire Risk - The Importance of Valuations

Posted by Neil Warburton,

As a surveyor working in the insurance valuation profession, the importance of adequate insurance cover on property, plant and equipment in the food sector, should not be under-estimated. Claim reductions owing to under-insurance at the point of a loss can mean the difference between survival and failure for many businesses. Too many companies under state reinstatement costs by making incorrect reference to other valuations such as book values from financial accounts or by using market values, rather than new replacement costs. The recent weakening of GBP against major currencies means that for plant and equipment, import costs are now higher and more volatile than in previous times, requiring closer monitoring. Many chartered surveyors, like my own business Charterfields, can provide reliable advice and even initial cost free tests to determine if current declared values for insurance are on or off course before a decision to value assets is made. For directors of companies this is an important part of risk management and maintaining the duty of care to protect assets on behalf of shareholders and those with third party interests, such as funders and banks.

Report abuse