5 reasons why a fire risk assessment is vital – and what to do if you haven't done one

Fire safety is both a legal requirement and a crucial safeguard for independent retailers. Without a fire risk assessment, you could face serious insurance, financial and legal consequences.

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Running an independent retail business comes with many responsibilities, and ensuring the safety of your staff, customers and premises should be high on the list. With new rules in place from 2025, businesses now face tougher penalties for not meeting fire safety obligations. Without a fire risk assessment, you could face severe consequences if the worst were to happen.

Beyond the obvious safety risks, failing to carry out a fire risk assessment could have a serious financial impact. Insurers expect businesses to take reasonable precautions against fire, and not meeting these requirements can affect both your cover and your claims. Taking the time to complete an assessment now can save you significant stress, cost and potential legal issues later.

Here are 5 key ways your business could be impacted by not completing a fire risk assessment, as well as a section below on what to do if you haven’t done one yet.

1.  Breach of policy conditions

Most commercial insurance policies require policyholders to take reasonable steps to reduce risks. A fire risk assessment is recognised as part of these steps. Without one, your insurer may view this as a breach of policy, which could lead to claims being refused, payouts reduced, or cover voided altogether.

2.  Impact on claims

If a fire occurs and no valid assessment is in place, insurers could argue the damage was preventable. Where a lack of assessment contributed to the cause or severity of the fire, your claim may be rejected or only partly paid.

3.  Liability issues

The risks extend beyond property damage. If staff or customers are injured in a fire and fire safety measures weren’t followed, you could face personal injury claims or even prosecution. In these cases, insurers may decline to cover liability due to non-compliance.

4.  Increased premiums or cancellation

Insurers regularly review policies at renewal. A missing or inadequate fire risk assessment could result in higher premiums, stricter policy conditions, or even cancellation of your cover.

5.  Regulatory and legal exposure

Separate from insurance, your local Fire and Rescue Authority could take enforcement action if you don’t comply with fire safety law. This may include improvement notices, fines, or in the most serious cases, criminal charges.

What to do if you haven’t completed a fire risk assessment

If you haven’t yet carried out an assessment, it’s important to act without delay. You can complete one in-house using a template or appoint a qualified assessor to do it for you. Document your findings and any actions you take, and review your shop insurance policy so you’re clear on your obligations.

As a Bira member, you have access to support through partners:

• Ascott Insurance provide a free fire risk assessment template that you can use straight away - you can login below to access this crucial document. They're also offering Bira members a free, no-obligation advice on managing your fire risk.
• WorkNest are running a webinar on fire safety, offering practical guidance for retailers.

Taking these steps will not only help protect your business, staff and customers, but also ensure you stay compliant with the law and fully covered by your insurance.