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Financial Benefits Of Fire Prevention

Dec 01, 2022

When considering fire prevention planning, many businesses don’t take into account costs that may not be covered by insurance. Even if damage is minimal, getting back to work is more complex than replacing equipment and writing off stock. If the EPA (Environmental Protection Agency) become involved it could be quite some time before you are permitted to operate again.


If a fire or environmental accident occurs at your site, the EP Act allows any person to apply to court for a breach of the Act. An EPA assessment can be enforced if:

  • ‘There are localised environment complaints, such as noise or odour; and
  • a person’s interests are affected by alleged contravention or non-compliance’.


The application may be granted if:

  • ‘The court is satisfied that:
  • the application would be in the public interest; and
  • the person had requested in writing that the EPA take enforcement or compliance action’.


If you are found in breach, the EPA will order your business to take specific actions, which may include;

  • ‘an order restraining a person / company from doing a particular activity;
  • an order requiring a person / company to take a specific action;
  • an order requiring the person / company to provide a financial assurance; and
  • a compensation order payable to the claimant, including for the injury, loss or damage suffered, and costs’.

Many do not realise that restraining operational activities can be applied, by the EPA, to all sites of your business. As well as bearing expected financial costs of a fire or chemical incident, you may be restricted from trading and thereby generating income to meet those costs not covered by insurance.


These costs may include;

  • Wages for workers who have been stood down.
  • Diminished income from sites that have been ordered to close.
  • Waste of production materials should their use be time-restricted.


While some may be able to bear the brunt of a short shut down, an EP order can extend to longer than a year, with businesses losing money as the process drags on. The psychological cost of stress + uncertainty can further take its toll on your workforce and customers. Our team can help reduce the chances of that occurring.


CityWatch’s Fire Prevention Officers are trained to assess your sites, identify problem areas and use their knowledge to design an appropriate fire protection plan, meet your budget and mitigate the chances of a multi-site closure.


Contact CityWatch on: 03 9250 4000 and make a time for an assessment.

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