What’s over the neighbouring fence?

November 2008

What lurks on the other side of the fence from your business premises? This was the question that many directors or business owners at Buncefield probably wished they’d asked themselves.

The hugely destructive explosion two years ago was described as the biggest in post WW2 Britain. Many business premises close to the seat of the explosion were destroyed or severely damaged, and local companies suffered disastrously as a result.

But did the directors of those companies appreciate that millions of gallons of aviation fuel were stored there and that Buncefield was a COMAH site? Short for the Control of Major Accident Hazards Regulations.

There are some 700 or more COMAH sites around the UK and they are principally occupied by organisations where threshold quantities of dangerous substances identified in the Regulations are kept or used – including chemicals, explosives, nuclear and other industries.

Although there are safety guidelines about how close to COMAH sites other buildings should be erected, it is clear that they did not protect the neighbouring firms at Buncefield.

How close are your premises to a COMAH site? Before you moved into your building or built it, your solicitor or surveyor might have carried out searches concerning the proximity to a flood plain or previous contamination of the site. But they probably don’t even begin to understand the significance of a COMAH site.

Under the new Company Law Reform Act 2006 directors are open to being sued by shareholders for failure in their fiduciary duties. So what responsibility do they have to shareholders to ensure a safe operating environment for the company?

The new Act makes directors personally responsible, which means that if legal action arises against them and they lose, their personal assets would be at risk...

So it might be worth having a walk around your local area to see if there are any ominous storage tanks within striking distance.

If you would like to find out how Towergate Risk Solutions Sevenoaks can help protect you, as a director of your company, call John Stevens on 01732 228771 or email john.stevens@towergate.co.uk

Do-it-yourself business recovery plans

Towergate offers a new website service which provides clients with a range of free, downloadable plans and guides to produce DIY Business Continuity Plans.

Tim Garland is Business Continuity Manager at Towergate and has extensive, career-long experience of handling a wide range of business continuity and recovery situations. He says: “Our website documents are packed with checklists and practical advice, and are ideal for a small firm with a handful of employees and maybe one location.

“They pose a series of questions to prompt you to review your recovery plans and encourage you to assess the impact of particular problems which might arise from flooding or any other catastrophe.”

The free documents include:

  • Business Recovery Guide and Plan
  • Business Impact Analysis
  • Crisis Management Plan
  • Business Recovery Guide

In addition, there are specific plans covering the roles of top management (The Gold Team Plan), one for middle management (The Silver Team Plan) and two papers outlining drills or exercises management can practice for pre- and post-emergency processes.

Visit www.seamlesscontinuity.co.uk for more details or contact Nick Fresson on 01732 228763.