Spread of Fire Liability: Why Risk Management and Insurance Must Work Hand in Hand
South Africa’s fire risk is as much a part of our landscape as its mountains and grasslands. Every year, we are reminded of how quickly a single spark can devastate lives, property, and entire communities. Beyond the immediate damage, fires also raise a critical question of liability: when flames spread from one property to another, who bears the responsibility, and how can insurers and their clients prepare for the financial and legal consequences?
This was the central theme of our recent Spread of Fire Webinar, in collaboration with Associated Loss Adjusters and Hexagon Fire Investigation. The discussion unpacked the legal framework, real-world case studies, and the critical role of insurance in safeguarding against one of the most complex risks in our environment.
Understanding Spread of Fire Liability
In its simplest form, “spread of fire liability” refers to the situation where a fire originating on one property spreads to another, causing loss or damage. Under South African law, liability may arise if negligence or a failure to take reasonable precautions is proven.
The consequences can be severe, ranging from compensation for property and livestock losses to business interruption, environmental damage, and even loss of life. Landowners, tenants, contractors, and municipalities all face exposure to this risk.
The Legal Landscape
The National Veld and Forest Fire Act places specific duties on landowners, including maintaining firebreaks, ensuring access to firefighting equipment, and notifying neighbours and Fire Protection Associations (FPAs) of any fires. Importantly, the Act carries a presumption of negligence: if a fire spreads from your property, you are presumed negligent unless you can prove otherwise.
Urban environments are governed by other frameworks, including the Occupational Health and Safety Act, the National Building Regulations, and the Fire Brigade Services Act. Here too, negligence (whether from poor maintenance, inadequate fire safety systems, or municipal service failures) can result in liability when fire spreads.
The Insurance Dimension
Insurance is the critical backstop when prevention efforts fail. Property policies protect the insured’s own assets, while public liability and spread of fire extensions cover damages when fire spreads to third parties.
However, policies often include exclusions, conditions, and warranties that clients may overlook:
- Compliance requirements such as firebreak maintenance and FPA membership.
- Exclusions for plantations, sugar cane, or gross negligence.
- Sum insured adequacy, with underinsurance leading to partial settlements.
- Disclosure obligations when risk circumstances change.
As our panel noted, brokers play a vital role in ensuring clients understand these nuances and in helping them document preventative measures that support future claims.
Practical Risk Management
Prevention remains the most effective risk strategy.
Proactive steps include:
- Maintaining firebreaks and fire detection systems.
- Conducting regular risk assessments and electrical inspections.
- Training employees, contractors, and designated fire marshals.
- Engaging with FPAs for coordinated prevention and response.
Equally important is preparedness when fire occurs: prioritising life and safety, alerting emergency services, documenting events, and notifying insurers promptly.
Why This Matters for the Insurance Industry
For insurers and brokers, the spread of fire liability highlights the delicate balance between underwriting risk and supporting clients with practical risk management. Fires test not only the resilience of property owners but also the responsiveness of policies, claims processes, and advisory services.
As climate variability and urban expansion increase fire exposure, the insurance industry must continue to innovate in product design, expand awareness campaigns, and ensure compliance support for clients. Spread of fire liability cover is not just a policy add-on; it is a “parachute” that protects financial stability when everything else fails.
Watch the Full Webinar
This article touches on just some of the insights shared in the session. To dive deeper, including case studies and technical insights, watch the full Spread of Fire Webinar here:
https://youtu.be/N3ots-nhjP0
