Property risks associated with under-utilised properties

Risks in temporarily idle premises are different from those in premises that are fully operational. While idle premises are not under day-to-day control of management and employees, it presents an easy target for criminal elements. Steps should be taken to prevent unauthorised entry to a temporarily idle facility in order to curb risks such as fire - for instance caused by arson or malfunction of electrical appliances-, theft and vandalism.

Aon offers a best practice guideline for general risk control purposes during a period that a building is idle:

Authorities

• Check whether there are any legal requirements for site closures and inform authorities of any plans to temporarily close premises, where appropriate.
• Provide authorities with a company contact number for emergency situations.

Insurance

• Inform your insurer of any site closures, timeously.

Security

• Maintain on-site security patrolling. If this option is not possible and/or there is no CCTV system or burglar alarm system, then random daily site visits should be carried out in and around the buildings.
• Ensure CCTV footage is monitored remotely or by your security company.
• Confirm whether your security company has an effective business continuity plan in place and what procedures will be followed during the Corona lockdown period.
• Maintain exterior lighting at night and check the effectiveness regularly.
• Switch-off internal lighting where possible.
• Lock all gates, doors and all windows and make sure the fence is in a good condition.
• Implement a key registration system, only granting authorised personnel access to the premises.
• Store confidential and important documents safely.
• Make sure that company critical IT systems are secured.

Fire safety

• Before leaving the premises, do a final check with at least two employees to switch off systems, electrical appliances and to close windows.
• Ensure that fire protection in the building such as the automatic sprinkler system, fire detection system and fire doors are in good working order. If possible, continue periodical inspection, testing and maintenance arrangements where practical or advise your insurer of any complications.
• Double check diesel tanks and safety measures around these assets.
• Check whether fire alarm systems work as required and that fire and technical alarms are transmitted to the right locations.
• Check whether underground yard hydrants are not covered / blocked by outdoor storage or parked trucks and that hydrant main valves are in open position.
• Ensure that water supply for the fire brigade remain fully operational and accessible.
• Notify your remote fire alarm response station that the building is temporarily unoccupied and provide them with an emergency number.
• Check whether hand fire extinguishers and hose reels are free of obstruction and are visible.
• Remove combustible material from the yard area, e.g. idle pallets, waste and other disused combustible materials.
• Lock outdoor stored gas cylinders or drums with combustible liquids.
• Drain and purge tanks and pipework that will temporarily not contain flammable liquids or gases to reduce the fire or explosion hazard from residual vapours.
• Trucks should be parked at least ten metres from main building facades.

Utilities

• Disconnect any non-essential battery charging systems. For those systems that cannot be disconnected, ensure that they are free of combustible materials.
• Make sure that all heaters are switched off.
• Close water main valves, taps and disconnect coffee machines or any such appliances that utilise a water connection.

Maintenance

• In case maintenance projects are scheduled during periods that the building is idle, robust contractor management procedures should be implemented.
• A written hot work permit should be issued for all construction, demolishing and maintenance works which require cutting, grinding, welding, etc. A fire check should be conducted before, during and after completion of work.

Contact your expert Aon broker today, to discuss the risks of your premises during the lockdown. Take care and stay safe.