Reduced occupancy and premises shutdown

skip to main content
Risk Bulletin

Chubb property risk bulletin: Reduced occupancy and premises shutdown

12/2022
empty building

Vacant or sparsely occupied properties present unique challenges because they lack the day-to-day activity that naturally mitigates common hazards. For example, a largely unoccupied building may be prone to unauthorised access or malicious damage. Isolating or not continuing to maintain sprinkler systems leaves the building exposed to a potentially severe fire while a reduced security presence may result in an increased risk of intrusion or arson.

There is a danger that routine risk management programs and maintenance protocols are deferred. This may result in the potential for incidents having an increased frequency or severity of loss.

Hazards in unattended buildings may present a risk to visitors, staff, contractors or emergency responders. Poorly lit areas, unprotected floor openings, abandoned chemicals or flammable materials can make it dangerous for those in the building or fighting a fire.

 

Managing the risk

The following should be considered:
 

  • Exterior and interior security
  • Decommissioning and recommissioning protocols
  • Building condition monitoring
  • Protective system supervision and maintenance
  • Review of risk management protocols

 

External areas

  • Implement enhanced exterior security including physical measures and guarding protocols
  • Remove all excess materials and combustibles such as rubbish bins and idle pallets from around the building
  • Trim and maintain vegetation to prevent overgrowth
  • Check the roof for vegetation growth, clogged drains or signs of vandalism
  • Maintain exterior lighting to deter crime or vandalism

 

Internal areas

  • Provide intrusion, fire and liquid leakage detection for unattended areas. Detection systems should signal to a constantly attended location or monitoring service
  • Ensure that safety related equipment (including emergency lighting, fire extinguishers, etc.) is maintained in an operable condition
  • Minimise the quantities of combustible materials on-site. Hazardous materials should be removed from the premises
  • Valuable items should be removed or secured in dedicated and controlled areas
  • Interior doors should be closed and secured where applicable

 

Risk management protocols

  • Decommissioning of building services may be considered but should not expose the facility to heating, fire and or security protection outages
  • Recommissioning plans should be established
  • Maintenance protocols for protective systems (including sprinklers, fire alarms, fire doors, intrusion alarms, CCTV systems, etc.) should continue to be in accordance with recognised standards and manufacturers recommendations. Deviations from normal protocols should be agreed in advance with Chubb Risk Engineering Services
  • Machinery and equipment should be decommissioned in a controlled manner to minimise the risk of damage and facilitate future recommissioning. Plans for appropriate maintenance regimes (including statutory and preventative requirements) should be established. It may be necessary to catch up on deferred maintenance prior to recommissioning
  • Plans should be established for reduced staffing at monitoring services, security guarding, emergency response and support for previously established response procedures
  • Contingency plans for utility and infrastructure failure or availability limitations should be reviewed
  • Building inspection protocols should be maintained, with at least weekly inspections of unattended areas recommended
  • Critical hygiene and pest control protocols should continue to be maintained
  • Protective systems impairments should continue to be reported to Chubb via email at fireimpairment.au@chubb.com

This content is brought to you by Chubb Insurance Australia Limited (“Chubb”) as a convenience to readers and is not intended to constitute advice (professional or otherwise) or recommendations upon which a reader may rely. Any references to insurance cover are general in nature only and may not suit your particular circumstances. Chubb does not take into account your personal objectives, financial situation or needs and any insurance cover referred to is subject to the terms, conditions and exclusions set out in the relevant policy wording. Please obtain and read carefully the relevant insurance policy before deciding to acquire any insurance product. A policy wording can be obtained at www.chubb.com/au, through your broker or by contacting any of the Chubb offices. Chubb makes no warranty or guarantee about the accuracy, completeness, or adequacy of the content. Readers relying on any content do so at their own risk. It is the responsibility of the reader to evaluate the quality and accuracy of the content. Reference in this content (if any) to any specific commercial product, process, or service, and links from this content to other third party websites, do not constitute or imply an endorsement or recommendation by Chubb and shall not be used for advertising or service/product endorsement purposes. ©2020 Chubb Insurance Australia Limited ABN: 23 001 642 020 AFSL: 239687. Chubb®, its logos, and Chubb.Insured.SM are protected trademarks of Chubb.

Contact us
Contact us

Have questions?

Contact a broker today.