Insurance company withdraws fire cover

[The Colonel]

Came across something new yesterday (to me anyway) with a relatively new client who has run a pub for the last 5 years. The client has supplied his insurance company with various documents each year including his own fire risk assessment, however at the last renewal it is understood that they didn't accept his assessment, reason unknown. Via his broker they asked for a fire risk assessment and an fixed electrical installation test certificate, unfortunately due to a breakdown in comms he was unaware of the request. This week the insurance company informed him that as they had not had a fire risk assessment and electrical cert they were withdrawing cover for fire until they were forth coming.

I have heard rumours that insurance companies may take such action but not come across it yet, the insurance company is one of the biggest in UK and according to the broker other insurance companies are taking similar action to ensure correct documents reach them and also trying to reduce incidents of fraud.

Has anyone else come across such action by companies, some indicated they would do it when the RRO came in but don't seem to have taken the opportunity. Perhaps by doing such they are trying to ensure assessments are under taken by "competent persons"

[nearlythere]

Came across something new yesterday (to me anyway) with a relatively new client who has run a pub for the last 5 years. The client has supplied his insurance company with various documents each year including his own fire risk assessment, however at the last renewal it is understood that they didn't accept his assessment, reason unknown. Via his broker they asked for a fire risk assessment and an fixed electrical installation test certificate, unfortunately due to a breakdown in comms he was unaware of the request. This week the insurance company informed him that as they had not had a fire risk assessment and electrical cert they were withdrawing cover for fire until they were forth coming.

I have heard rumours that insurance companies may take such action but not come across it yet, the insurance company is one of the biggest in UK and according to the broker other insurance companies are taking similar action to ensure correct documents reach them and also trying to reduce incidents of fraud.

Has anyone else come across such action by companies, some indicated they would do it when the RRO came in but don't seem to have taken the opportunity. Perhaps by doing such they are trying to ensure assessments are under taken by "competent persons"

I'm surprised really as the chances are he won't have a fire but he will be paying the premiums year in year out just in case. The time for the insurance company to scrutinize the fire risk assessment would be if he makes a claim and then reject it on the grounds of the FRA being inadequate and for not exercising due care as the electrical installation was not tested. They certainly don't have to refund all the years of premiums either.  So I am surprised.

[kurnal]

Yes I have come across this and one client calls me back every year to "renew" the risk assessment before it "expires" as the insurance company will not accept a fire risk assessment report more than 12 months old. I have explained the facts to the client but they don't want to make an issue of it.

[CWEENG]

I have come across the issue a number of times now an have looked into various insurance providers policy hand books.  The general information that has been coledted and is passed onto my clients is as follows;

Business Insurance Requires a Fire Risk Assessment to be in Place
(or your insurance policy could very well be voided)

Most business insurance policies state that there is a requirement to have a Fire Risk Assessment in place.


If you do not have a suitable and suffice fire risk assessment in place as per the legal requirements of the The Regulatory Reform (Fire Safety) Order 2005, for your premises, and you have not implemented a suitable fire safety strategy, as well as breaking the law and facing the possibility of legal action against you, your insurance policy may also be voided.

Conditions of most Insurance policies for non domestic premises (public and private) state that you must take “Reasonable Precautions” in order for your insurance policy to be valid. This includes the conducting of a Fire Risk Assessment for your premises.

Typically examples of wording within policies are, “that you must”:

•   Take all reasonable precautions to prevent or minimise Damage accident or Injury
•   Maintain the business premises machinery equipment and furnishings in a good state of repair
•   Exercise care in the selection and supervision of Employees and their abilities
•   Comply with all relevant statutory requirements, manufacturer’s recommendations, and other regulations relating to the use inspection and safety of property and the safety of persons.
•   Comply with all statutory requirements and other safety regulations imposed by any authority (this would includes the requirement for a Fire Risk Assessment to be carried out)
In order to comply with the above, a suitable and suffice fire risk assessment should be carried out by a competent person, in line with the requirements of the Regulatory Reform (Fire Safety) Order 2005

[The Colonel]

At least the insurer did warn the client so that he could put his house in order rather than having a fire and the insurance company doing a quick side step on paying out. It certainly made the client sit up and take notice.
Cweeng Interesting about the wordings of the policies and your take on the section that you include in the assessment. Will have to consider such an information inclusion in my assessment reports

[CWEENG]

With the help of an Insurance broker that deals purely with commercial insurance, six leading insurance providers hand books were looked at, all of which in one way or an other stated that there may be an issue if the worst was to happen. (insurance companies get out clauses as I call them,, but I am cynical).

[db67]

At least your client has been made aware of this before a claim is submitted and refused, which could be a costly and extremely stressful time!!