(according to the insurer)
Every year our primary property insurer conducts dozens of property risk surveys (like audits) that identify realistic actions to reduce the risk to property and people caused by extreme weather, fire, intruders, personal accident and other unplanned events. We analysed the results from last year’s survey and noticed there are 4 key (and repeating) issues:
1. Fire Prevention and Detection – this recommendation is concerned with the need to minimise both the likelihood and severity of fire. Insurers advise that the largest and most common type of individual building losses are due to fire. Older buildings have heightened susceptibility due to the failure of older style electrical switchboards, fuses and wiring, and the impact is often catastrophic. Annual visual inspection, instrument testing and/or thermal imaging of electrical installations (including distribution panels and switchboards) by a qualified tradesperson can assist in identifying problems before they lead to serious loss and interruption. On significant risks, the installation of a remote fire detection system is key to minimising fire losses.
2. Basic Fire and Life Safety – this recommendation refers primarily to the lack of adequate fire emergency plans and regular evacuation drills observed during the surveys. Documented evacuation plans and drills will assist people to know what to do and who can assist in the event of an emergency. The establishment of documented plans will also ensure that you are complying with various legal requirements that make them mandatory. The Australian Standard AS 3745 calls for all areas of the organisation to participate in an emergency exercise at least once in every 12 month period, and for skills training of staff and key personnel in the effective use of fire suppression equipment at least once every 2 years.
3. Water, Gutters and Roofing – this recommendation encompasses checking and maintenance of roofs, gutters and storm/wastewater systems. Gutter checks and cleaning should be a scheduled task within your preventative maintenance program and, under normal conditions, be conducted at least twice a year to ensure against blockages. A simple visual inspection is usually sufficient to ensure the condition of the roof, flashings and guttering are in satisfactory condition and free from rust and corrosion… and will work effectively in the event of a major storm (which are happening more and with greater impact). Even if your insurance policy has cover for a particular event, like a storm, we have seen pre-existing deterioration or poor maintenance trigger a claim exclusion.
4. General Housekeeping – while much can be said on this, there are two clear issues. Most commonly identified is waste as fire hazard, or items that can be used by intruders to gain access to the building. Combustible materials and waste stored close to buildings represent a well-known external fire hazard. Where possible, it is recommended to keep a minimum of 10 metres of physical separation. The lids of larger waste bins should be fully closed and locked overnight. Smaller waste receptacles, including wheelie bins, should be secured in place overnight to prevent an intruder moving them against the building to gain access. Second is general tripping hazards. This is a simple visual inspection that anyone can conduct. The key is then to action any identified hazards.
The Good News
Of these four most common recommendations for risk improvement, the majority are relatively inexpensive and can be incorporated into ‘business as usual’ practices with minimal effort… it just takes a bit of basic knowhow (the exception is a fire detection system which is expensive). Attention to these matters will not only reduce the likelihood of foreseeable loss events but will also enable AIRS Members to reduce their insurance costs over the long term.
Ansvar is soon to commence its 2023 program in which a small number of locations are selected to host an onsite inspection by a risk engineer, the outcome of which is a report recommending actions for risk improvement.
An AIRS Solution (and it’s free!)
AIRS has developed two online programs to assist. First is the annual housekeeping/maintenance checklists and second is the DIY Risk Survey… which is very similar to the ones that insurers undertake. Please let us know if these are something you would like to have access to.
Written by Mary Lynch, AIRS National Risk Manager
March 2023