Commercial Property Partner Stephen Firmin examines the practical implications of the current fire safety requirements for business premises.

Those buying, owning or renting commercial premises need to take heed of the current fire safety requirements. Last October much of the old fire safety legislation was replaced by The Regulatory Reform (Fire Safety) Order 2005. This introduced a new requirement for a fire risk safety assessment to be carried out and kept up to date. The local fire authority is responsible for enforcement but will not carry out the risk assessment (unlike the process which used to apply for fire certificates).

The assessment must be carried out by the “responsible person”. Whether this is the landlord or the tenant largely depends upon the parties respective obligations under the lease. The requirement for assessments applies to communal areas as well as specific leased units.

The changes go well beyond the previous requirements for fire certificates and can apply regardless of the size of the business. The fact that the premises may not have required a fire certificate in the past does not mean that they will remain exempt. For some premises (particularly older properties) the cost of work arising from the assessment may be significant.

Failure to have a satisfactory assessment carried out and acted upon is a criminal offence. As alarming is the possibility that buildings’ insurance for the premises may be invalidated if the current fire safety legislation is not complied with.

Landlords and tenants of commercial premises should not take the risk of insurers refusing to reinstate after fires. The tenant may find that he is responsible under the lease for covering the cost of re-instatement if the insurers legitimately refuse to pay out the claim. The costs could be substantial and lead to the business closing. From the landlord’s perspective he may be left with a claim for compensation against the tenant which may in reality be worthless; leaving the landlord with the cost of re-instatement before he can re-let or market the property.

General guidance on the new assessment requirements is available at the government website www.communities.gov.uk. Although the assessments can be carried out personally it is strongly recommended that an expert is used.

If you already own or rent commercial premises - or are looking to buy - it is essential that these requirements are allowed for and appropriate steps are taken. Failure to do so could be far more expensive than you think!