By Ruben Els, AM SAESI, FPSP ECSA, Director – Operational Risk Services, Riskonet. With editorial context provided by PARTNER RISK Solutions.

Context: Fire Risk, Loss Prevention and Operational Readiness

Recent large-scale fire losses, including several high-profile industrial and commercial incidents across the Western Cape, have once again highlighted the severity and long-term consequences of fire risk. For underwriters and brokers, these events serve as a reminder that fire remains one of the most material loss drivers within commercial insurance portfolios.

From a PARTNER RISK perspective, effective fire risk management extends beyond regulatory compliance and the presence of detection and suppression systems. Proactive risk management, loss prevention, and the ability to respond effectively in the early stages of a fire event play a meaningful role in limiting damage to people, property, and business continuity. This is particularly relevant in an environment where local authority response capacity may be constrained.

Based on available fire statistics, there has been a sustained increase in the number of industrial fires year-on-year and in the associated costs to the insurance industry. Contributing factors commonly include limited awareness, inadequate fire prevention practices, nonadherence to standards, design shortcomings, enforcement challenges, and reduced capacity within local authorities.

While much attention is rightly placed on fire protection systems and building compliance, an important element is often overlooked: the readiness and capability of on-site fire teams. Many organisations have historically relied on external emergency response services and, as a result, lack the internal expertise to design, train, and maintain an effective first-response fire capability. This gap is compounded by the absence of clear national standards governing fire team training and operational preparedness.

The discussion below examines the regulatory framework, operational considerations, and practical measures necessary to evaluate and enhance fire team readiness. These insights are particularly relevant for underwriters assessing fire risk exposures and brokers supporting clients in strengthening their overall risk protection strategies.

Fire Prevention Strategies

Besides the ongoing need for improvements in fire prevention, an important aspect often overlooked by many organisations is the preparedness of on-site fire teams. This requires organisations to improve training and better equip their own fire teams. Because most organisations have, for years, depended on responses from local authorities, it is not within their normal scope to design, train, and administer professional fire skills. Most organisations thus find it difficult to deal with the complexities of establishing a professional fire response. To further complicate the matter, there are no National Standards that guide this.   

National Building Regulations

The National Building Regulations require buildings to be designed so that adequate protection is provided for occupants to evacuate the facility and to limit fire spread to neighbouring premises and communities. Key focal areas also include stability and smoke control. The regulations go on to discuss detection as well as the provision and maintenance of fire equipment. 

Occupational Health and Safety Act

In addition to the National Building Regulations, the Occupational Health & Safety Act requires an organisation to provide its employees with a safe working environment. This includes identifying potential fire risks. Where fire risks have been identified, forms of mitigation may include, amongst others, training in risk assessment techniques, knowledge of fire properties, means of fire defence, the provision of suitable equipment, and its use. The Occupational Health and Safety Act further enables SANS 10105, which requires the equipment (as required by the National Building Regulations) to be correctly positioned, maintained and inspected. 

The Role of On-Site Fire Teams

However, none of the regulations or acts guide training or the safety equipment required by the fire team (employees of the organisation). 

How Organisations Can Respond

• Both pieces of legislation require organisations to ensure that they have adequately identified all risks. This can only be achieved if the organisation has conducted a risk assessment that would have adequately identified all the different fire risks, such as internal and external fire loads, storage of flammable liquids, utilities, gas installations, types of structure, types of processes, neighbouring risks, storage facilities, etc. 
• Once all risks have been identified, the control measures that minimise or mitigate these risks should be considered. 

Some key control measures to consider include:

• Ensure that the correct and sufficient fire-fighting equipment has been provided and that this is suitable for the risks as determined by the risk assessment. This will include items such as fire extinguishers, fire hydrants, foam and foam-making equipment, personal protective equipment, breathing apparatus, etc.  Standards are available for selecting all this equipment, and these should be reviewed to ensure the selected equipment is suitable for the risk. 
• Ensure that the fire team is trained to use all equipment and to respond to all risks identified in the fire risk assessment. If this has not been identified as part of the training needs assessment, or in the selection of the training curriculum or service provider, there could be a misconception that you have a properly trained fire team.  
• In addition to the initial training, teams need to conduct regular drills and refresher training to ensure that the skills are not forgotten. This training should also familiarise the team with on-site risks and existing procedures.   
• Whatever equipment is selected must be subject to regular, ongoing maintenance and inspections as required by the applicable code of practice or the manufacturer. It is essential to consult these when determining maintenance intervals. Items that are often overlooked include the fact that some equipment, such as foam, fire protective gear and respirators, has defined lifespans and should be replaced at pre-determined frequencies.  
• Once all risks have been identified and a strategy has been developed, including equipment and training, the organisation can develop an appropriate response to all possible emergencies. 

These procedures should be detailed but easy to follow and communicated to the fire team and staff as required. The procedures must be reviewed at predetermined frequencies and reviewed whenever a change occurs.  

Assessment, Review and Ongoing Readiness

In conclusion, it is recommended that fire teams be assessed at least once a year. The assessment should take into account on-site risks and the risk management strategy. A live-fire drill should be conducted where possible, provided it is conducted under controlled conditions and supervised by a trained professional. When live fire training is not possible, fires should be simulated. 

The assessment should review the fire teams’ actions, whether procedures were followed, and whether those procedures remain adequate and appropriate. Consideration should also be given to the suitability of the equipment provided and the effectiveness of team leadership.

The information gathered by this assessment should be used to improve the strategy and procedures, if required, to develop a training matrix, and to provide an action list to rectify findings. 

From a risk assessment perspective, this level of preparedness provides underwriters with greater confidence in both loss prevention and loss limitation outcomes. A well-trained, equipped and prepared fire team enables organisations to respond effectively to a wide range of emergencies that might otherwise result in business interruption or closure. Importantly, it also reduces the risk to human life.