INSURANCE
Risk management – Erimus Insurance Brokers MD Lee Elgie .
UNDER COVER How a broker can help warehouses cover their fire risks
Warehouses have always had a high fire risk because of the potential stock and volume they can hold .
However , things could be worsening , in part due to the growth of next-day delivery demand and online shopping . Here , Lee Elgie , managing director at Stockton-based Erimus Insurance Brokers , discusses the situation ...
Smaller , older buildings , which are now being used as warehouses because they are convenient due to their location for the supplier and being able to function nextday delivery requirements , do not require the sprinkler systems the Department for Communities and Local Government recommends for premises sized over 20,000 sq m .
Warehouses should , therefore , take fire-risk management extremely seriously as they can be full of ignition sources , combustible and flammable materials , plus fire-feeding oxygen sources .
Dangerous chemicals and substances , including petrol , methylated spirits , paints and oils , might be on-site or foodstuffs with a high oil content , such as cooking oil , butter and flour , could be a stored risk .
High-density pallet racking and cardboard packaging can also feed the fire with their corridor effect , along with abandoned rubbish and dust build-up . Airborne dust can cause dangerous secondary explosions too .
The causes of a fire can be numerous . Maintenance that could involve welding and soldering “ hot work ” can cause dangerous sparks , for example , while welding work may also necessitate having oxygen tanks on-site , which help feed fires .
It is essential warehouses engage in good fire risk management and fit fire warning , prevention and suppression devices .
Faulty and poorly maintained equipment and overloaded electrics are other potential causes of fires . Extractor fans can become clogged and overheat . Frictional heat and static , generated by moving objects and machinery , can ignite debris and neighbouring objects . Warehouse environments with conveyor belts can be particularly susceptible to this .
The threat of fires caused by cigarettes has also not gone away . Employees should only smoke in external areas free from any rubbish or materials that could catch fire . Extinguishing cigarette butts with great care is essential and butts should never be discarded close to warehouse doors , where they could be blown inside .
Removing external rubbish and fitting good lighting and perhaps cameras can also reduce the chances of fires caused by arson .
Changes in warehouse technology have seen new risks emerge . In July 2021 , a collision between three robots caused a major fire in a South-East London warehouse . In 2019 , a fault in a robot ’ s battery charging unit led to it catching fire and burning the warehouse down .
With so much to think about , it is essential warehouses engage in good fire-risk management and fit fire warning , prevention and suppression devices .
Having the right warehouse insurances is also vital . Warehouse owners need to cover repair or rebuild costs through buildings insurance , but also the stock they could lose . They could also need robust public liability insurance , as any fire at the premises could affect other properties , plus legally required employers ’ liability insurance . Business interruption costs can also be covered , as the premises – and perhaps the entire business operation – could be affected for some time .
Working with an experienced broker will enable a warehouse owner to assess how much protection is required for elements such as stock and ensure that any seasonal fluctuations in stock levels are adequately protected . A broker may also suggest ways to improve risk management .
For help with all of this , contact Erimus Insurance Brokers on 01642 240400 .
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