What’s the issue?
For business premises, arson or deliberate fire setting is the second most common cause of fire. It continues to impose significant costs to the economy, with around 80% of businesses never fully recovering from a deliberate fire.
What is it?
Insurers consider that combustible materials such as pallets and waste are open invitations to a potential arsonist and insurers don’t want to cover this invitation.
If you don’t keep you bins securely locked away from the building, you expose yourself to a significant uninsured risk.
Waste needs controlling, and in hot weather over 30C +, rags soaked in petrol, thinners, and even linseed oil can spontaneously combust.
This is a concern for out of hours fires. An insurer expects these types of rags to be in metal bins with metal lids.
What are the Regulations?
This falls under the Insurance Act 2015, which requires the policyholder to make a fair representation of the risk.
The insurer will also issue a statement of fact typically to explain what they understand the risk to be
What is the relevance to my insurance?
This will apply to the majority of Commercial Property damage policies
A breach of the warranty that results in a loss, will equal a non-payment of claim
What is the Small Print?
Insurers strongest wordings are Warrantys and Condition Precedent to liability. If you don’t abide by these terms no cover applies
Insurers consider Waste to be a serious issue and they issue a warranty in their wording that dictates the management of waste materials
Check the warranty wording and ensure compliance.
What do I need to do?
- Do not allow rubbish to build up around premises and clean up regularly
- If possible, restrict access to where waste is stored – keep temptation out of sight
- Do not overfill bins and keep them securely shut
- For communal bin stores, keep doors shut and follow the property management instructions
- Skips should be located away from the property and collection should be arranged as soon as it has been filled.
- A locked skip lid is required if within 10m of the building
Castlemead discuss this warranty with their clients. On a site visit, your Account Executive should spot non-compliance.
Insurers will amend these conditions if they are satisfied that there is little or no alternative.#
If you would like to discuss any of the above contact Castlemead Insurance Brokers
Founded in 1987, Castlemead Insurance Brokers is an independent commercial insurance broker, specializing in Corporate Insurance, offering a full insurance broking and risk management service to our clients. Offices in the South-West of England, with clients across the UK, including Scotland and Channel Islands. Castlemead are experts in International Insurance Programmes and are partner members of the GBN Insurance network. We also have an EU subsidiary to aid placing insurance policies with modest EU Insurance risk