The £78,000 flame: The true cost of UK business fires

The average cost of a fire to a UK business is around £78,000, which can be financially devastating, especially for small companies and startups.


Investing in fire security systems is a legal requirement for businesses in the UK and a crucial step to safeguard lives, assets, and in some cases, the very future of a company.

The average cost of a fire to a UK business is around £78,000, which can be financially devastating, especially for small companies and startups. This cost is made up of:  

  • Property damage – 43%
  • Interruption to business and loss of sales – 18%
  • Damage to contents – 7%
  • Loss of equipment/machinery – 5%
  • Damage to stock – 5%
  • Loss of rent – 2%

Alongside this, the health and emotional costs of a fire incident can impact the well-being and productivity of a company’s employees both in the short and long term.

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Businesses most at risk of workplace fires

While all businesses are susceptible to fire risks, government data reveals some are more vulnerable than others.

Business typePercentage of fires last year
Industrial24%
Food & drink19%
Retail stores17%
Hotels8%
Hospitals7%

Certain environments are vulnerable due to their operations and layouts. For example, industrial settings face hazards from high-powered machinery, flammable materials and chemicals, while restaurants and kitchens contend with open flames, cooking oils and grease buildup.

Retail stores are at risk from flammable merchandise, electrical equipment and improper storage. Hotels face unique challenges, including complex layouts, multiple cooking areas and incidents of guest negligence, such as careless smoking. Hospitals are especially susceptible to fires due to oxygen-rich environments, electrical equipment overloads and kitchen facilities.

Government data lists these as the top causes of fires in non-residential buildings:

  • Careless handling of fire or hot substances
  • Chip/fat pan fires
  • Faulty appliances and leads
  • Faulty fuel supplies
  • Misuse of equipment or appliances
  • Placing articles too close to heat
  • Playing with fire

According to the London Fire Brigade, electrical distribution is a leading cause of fires in offices (32%) and retail businesses (28%), while cooking accounts for 25% of fires in restaurants and 41% in care homes. Smoking-related incidents and lighting malfunctions also contribute significantly to workplace fires.

These statistics highlight the importance of tailored fire safety measures for each industry to mitigate risks and protect lives and assets.

Investment in security systems outweighs fire security across the country  

Running a business is a demanding task, and it's easy for critical aspects like fire safety to fall by the wayside. However, neglecting fire safety can have serious consequences, including legal repercussions and business closure. Many companies fail to invest in proper fire safety measures despite these risks.

"There are a million compliance issues to get right for business, and fire safety is rightly one of them. It can be really difficult to cut through the noise and expectations around your responsibilities. At Spy we have years of experience in helping guide managers and owners of all business sizes in making sure that you have all bases covered."

Glenn Flannery, Group Commercial Director at Spy Alarms

According to our data, last year 59% of people invested in security measures like Access, CCTV and Intruder alarms versus 39% who invested in fire security. In almost all areas, investment was predominantly focused on Access, CCTV and Intruder systems, rather than fire.

The most significant gap was seen in Tunbridge Wells, where 838 new businesses were registered in 2024 according to Companies House data. Our data shows that 272 Tunbridge Wells businesses focused on security measures, compared to just 39 who focused on installing fire systems.

Which locations invested more in security vs fire last year?

AreaSecurityFireTotalDifference
Tunbridge Wells27239311-233
Brighton26156317-205
Bromley17413294-161
Medway19535187-160
Canterbury17649230-127
Redhill9418225-76
Reading6712189-55
Kingston upon Thames6112112-49
Croydon622279-40
Dartford612873-33

Fire incidents in London were four times higher in 2023 than 2024

Fortunately, according to government data, there were 16,120 fire incidents in 2023 and  4,753 in 2024, marking a 71% decrease overall.

While Westminster topped the list as London’s biggest fire hotspot with 239 incidents, the borough also had the highest number of false alarms, at 1,979. This could indicate that businesses in the Westminster area are being especially cautious and reporting suspected incidents more readily than those in other neighbourhoods.

Fire hotspots in London

AreaIncidents in 2024
Westminster239
Newham198
Greenwich191
Haringey189
Barnet182
Ealing182
Brent182
Lambeth174
Enfield162
Hillingdon161
Lewisham156
Hackney152
Wandsworth149
Havering147
Bexley143
Islington141
Bromley140
Redbridge130
Hounslow129
Waltham Forest125
Barking & Debenham119
Hammersmith & Fulham91
Merton86
Kensington & Chelsea85
Sutton83
Kingston75
Harrow71
Richmond66
City of London23

Navigating fire safety in 2025

Workplace fires are serious matters, carrying severe financial and legal consequences. It pays to be proactive about fire safety. This applies to all businesses, but especially to those in retail, food service, and industrial work.

Some businesses may not have adequate fire safety in place for the following reasons:

  • Lack of budget: The cost of fire safety equipment can be a deterrent, although the cost of fire damage and fines will be significantly higher.
  • Lack of knowledge: Some business owners may not know what the law requires of them.
  • Lack of training: Businesses without the proper safety training and fire warden training will not be prepared for the event of a fire.
  • Lack of time: Finding time to source fire safety equipment and practice fire drills on top of all the other tasks involved in running a business can be challenging.
  • Lack of internal processes: Fire safety systems require regular maintenance, and employees need regular training. If internal processes aren’t in place to ensure this, the business will be left unprepared for a fire.

By prioritising fire safety, your business will fulfil its legal obligations while creating a safer workplace and protecting its reputation and assets.

Start by assessing the fire risks on your business premises and taking the appropriate safety measures, such as fire alarms, extinguishers, emergency lights, and fire doors. Then, provide regular fire drills and training for your team.

Fire safety made easy with Spy Alarms

Partnering with us for your fire safety and security needs ensures compliance, reduces management complexity and provides expert advice tailored to your business. We provide regular maintenance and seamless integration of systems, all managed under one roof, for optimal protection. Contact us today for a free consultation and discover the peace of mind a unified approach to fire safety brings.

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For almost 40 years we've been helping people protect their homes and businesses. Our products are designed to provide the very best protection for each customer.

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Spy Alarms Ltd.

6 Ravensquay Business Centre, Cray Avenue, Orpington, Kent, BR5 4BQ

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