What Invalidates Business Insurance? Fire & Security Guide
Business insurance is there to protect your premises, stock and livelihood. But it only works if you comply with the terms of your policy. So, what invalidates business insurance when it comes to Fire and Security?
In the UK, many commercial insurance policies include specific fire and security conditions. If those conditions aren’t met, insurers may reduce or refuse a claim, particularly for theft, fire, or malicious damage.
Below, we explain the most common fire and security issues that can affect business insurance validity, based on real UK insurer policy wording and widely recognised standards.
Table of Contents
1. Not Setting or Maintaining Your Intruder Alarm
This is one of the most common claim pitfalls.
Several major UK insurers (including Zurich, AXA and Aviva) include policy conditions requiring:
Intruder alarms to be installed to recognised standards
Systems to be maintained under a formal maintenance contract
Alarms to be fully set whenever the premises are closed or unattended
Signalling (where required) to be operational
Some policies describe these as a “condition precedent to liability.” In practical terms, this means if the alarm was not set, not maintained, or not working properly at the time of a theft, the insurer may refuse to pay that claim.
For example, insurer wording may require:
Compliance with BS EN 50131 / PD 6662 standards
Maintenance by an NSI or SSAIB-approved installer (or equivalent)
Removal of alarm keys when the building is unattended
Attendance at the premises if the alarm system is not fully operational
If a business leaves the building without setting the alarm, even once, that can become highly relevant during a theft claim investigation.
2. Failing to Notify Your Insurer That a Property Is Unoccupied
Unoccupied property clauses are a major insurance tripwire.
Many UK commercial policies require you to notify the insurer immediately if the building becomes unoccupied for a specified period (often 30 consecutive days, sometimes less).
When a building is classed as unoccupied, insurers commonly:
Restrict cover to limited perils
Impose additional security requirements
Require regular inspections
Require accessible openings to be secured
Require services to be isolated (with exceptions for alarm systems)
Failure to notify the insurer, or failure to comply with the additional security conditions, may result in certain claims not being paid.
This is particularly important for:
Seasonal closures
Vacant units
Renovation projects
Delayed lettings
If your building is empty, assume your insurance conditions have changed.
3. Not Maintaining Fire Alarm Systems Properly
Fire alarm issues are slightly different from intruder alarm conditions, but still critical.
Under UK law (Regulatory Reform (Fire Safety) Order 2005), businesses must:
Carry out a suitable and sufficient fire risk assessment
Implement appropriate fire detection and alarm systems
Maintain those systems
Most insurers expect fire alarm systems to be installed and maintained in accordance with BS 5839-1 (for non-domestic premises).
While not every insurer uses the same wording for fire alarms as they do for intruder alarms, they typically expect:
Regular servicing by a competent contractor
Routine in-house testing
Up-to-date inspection records
If a fire occurs and investigation shows:
The alarm system had not been maintained
The system was known to be faulty
Required safety recommendations were ignored
…this may affect how the insurer handles the claim.
In serious cases, failure to comply with statutory fire safety duties can also complicate matters.
4. Misrepresentation or Non-Disclosure
At the quotation stage, insurers rely on the information you provide.
If you:
State that you have a monitored alarm when you do not
Fail to disclose that an alarm is no longer monitored
Don’t inform your insurer about material changes to the building
Understate the nature of your business activity
…that may amount to misrepresentation.
Under UK insurance law, material non-disclosure can give insurers grounds to:
Adjust the claim
Impose different terms
Or, in serious cases, void the policy
This applies equally to fire protection and security measures.
If something changes, tell your insurer.
5. Not Following “Security Device” Conditions
Many commercial policies include general wording along the lines of:
All security devices must be kept in good order and put into full and effective operation whenever the premises are closed or unattended.
This doesn’t just mean alarms.
It can include:
Locks
Shutters
Bars and grilles
CCTV systems (where specified)
Access control systems
If a required protective device is disabled, removed, or left unused, that may be considered a breach of policy conditions.
6. Alarm Signalling and Monitoring Failures
Where policies require remote signalling to an Alarm Receiving Centre (ARC), insurers often specify:
The signalling path must be operational
The ARC must meet recognised standards
The system must be under a maintenance contract
If signalling is disabled - intentionally or otherwise - and the premises are left unattended, this may affect theft-related claims.
In some policy wordings, if the system is not fully operational, the building must not be left unattended unless alternative arrangements are agreed.
7. Poor Documentation and Record-Keeping
When a claim occurs, insurers typically ask for evidence.
That may include:
Alarm maintenance contracts
Service certificates
Inspection records
Fire risk assessments
Monitoring agreements
Evidence of regular inspections (for unoccupied premises)
If you cannot demonstrate that you complied with policy conditions, that may complicate the claims process.
Documentation is not just compliance theatre - it’s evidence.
What Typically Puts Business Insurance at Risk?
Based on real UK insurer policy wording, the most common fire and security-related claim risks include:
Not setting an intruder alarm when required
Failing to maintain alarm systems under contract
Leaving a property unattended when alarm signalling is not operational
Not notifying insurers of unoccupied premises
Ignoring unoccupancy conditions
Not maintaining fire alarm systems appropriately
Misrepresenting the level of protection in place
Failing to keep documentation
Each policy differs, but these themes are consistent across major UK insurers.
Disclaimer: Always Check Your Own Policy
Insurance policies are contractual documents, and wording varies between providers.
The examples above are drawn from current UK commercial policy wordings (including Zurich, AXA and Aviva), but your specific cover may differ.
Always:
Read your policy schedule and endorsements
Check any “condition precedent” clauses
Speak to your broker or insurer if unsure
This article is intended as guidance, not legal advice.
Final Thought: Insurance Is About Demonstrable Compliance
From a fire and security perspective, insurers aren’t just asking:
“Did you have an alarm?”
They’re asking:
“Was it installed correctly, maintained properly, set when required, and supported by documentation?”
If the answer to all four is yes, you’re in a far stronger position.
If you’re unsure whether your systems meet insurance expectations, reviewing them now is far better than discovering an issue during a claim.
What Invalidates Business Insurance? FAQs
Business Insurance & Fire / Security Compliance (UK)
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Potentially, yes — depending on your policy wording.
Many UK commercial insurance policies require intruder alarms to be set whenever the premises are closed or unattended. Some insurers describe this as a “condition precedent to liability,” meaning failure to comply could allow them to refuse a theft-related claim.
Always check whether your policy includes specific alarm-setting conditions.
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Some insurers require alarm systems to be installed and maintained by a company certified by recognised UK bodies such as:
National Security Inspectorate
Security Systems and Alarms Inspection Board
This is usually specified in the policy schedule. If your insurer requires an accredited installer and you do not use one, that may affect certain claims.
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In some commercial policies, if the alarm system (including remote signalling where required) is not fully operational, you may not be permitted to leave the premises unattended unless alternative arrangements are agreed with the insurer.
If a theft occurs while the system was known to be faulty, this could impact the claim.
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Many insurers require intruder alarms to be maintained under a formal contract and serviced in line with recognised standards such as BS EN 50131.
Without evidence of proper maintenance, insurers may question whether policy conditions were met.
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Yes, indirectly.
Under the Regulatory Reform (Fire Safety) Order 2005, businesses must maintain appropriate fire detection and alarm systems. Insurers generally expect compliance with relevant standards such as BS 5839-1.
If a fire occurs and the alarm system was not properly maintained, this may affect how the claim is assessed.
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Most commercial policies include unoccupied property clauses.
If your premises are empty for a defined period (often around 30 days), you may be required to:
Notify your insurer
Increase security measures
Carry out regular inspections
Comply with additional conditions
Failure to follow these requirements may restrict cover during that period.
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If CCTV is a specified requirement in your policy schedule — particularly as a condition of cover — then failure to maintain or operate it as required may affect a claim.
If CCTV is not a formal policy requirement, it is less likely to invalidate cover on its own.
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Often, yes.
Many insurers expect up-to-date Electrical Installation Condition Reports (EICRs), particularly for commercial premises. If a fire is linked to electrical faults and inspections were overdue, this could influence how a claim is handled.
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It means compliance with that condition is required before the insurer becomes liable for a claim under that section of the policy.
If the condition is breached, the insurer may be entitled to decline the claim for that specific loss.
Not all policy conditions are labelled this way — but when they are, they should be taken seriously.
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Not necessarily.
UK insurance law distinguishes between deliberate breaches, careless breaches, and minor technical issues. Outcomes can vary depending on:
The wording of the policy
Whether the breach was material
Whether it contributed to the loss
However, the safest position is always full compliance and clear documentation.