Guild Insurance sees many insurance claims which have come about due to poor maintenance of a property.  In too many of these cases, the poor state of the building or its grounds is obvious and it’s quite surprising, as well as disappointing, that repairs haven’t been carried out before an incident has occurred.

What can go wrong?

There are a range of incidents which can occur due to poor maintenance of a property.  Staff can be injured leading to a worker’s compensation claim as well as staff being absent from work for an extended period.  Visitors to the premises, such as customers, clients or contractors, can also suffer injuries leading to public liability claims.  As well as the insurance claims which need to be managed, there’s the added stress of knowing that someone has been injured while at your premises.  Some of these injuries can be very serious and life changing.  Unfortunately, the hazards which lead to these injuries are often not viewed as seriously as they should be.  Yet with appropriate property maintenance many of these injuries could be avoided.

Case 1

A client entered a building and tripped over an edge of carpet which was ripped and curled up.  The client sustained a fractured wrist when they landed.

Case 2

An awning out the front of a building was old and worn out.  During heavy winds it broke off from the building and hit a person walking past at the time.

Case 3

While walking through the carpark of a premises, a staff member has tripped on a large crack in the asphalt which had caused the surface to be uneven.  They fractured their ankle as they fell.

Case 4

Poor maintenance doesn’t just lead to people suffering injuries, it can also lead to further damage to the property.  An old deteriorating roof collapsed when hit by heavy rain as it no longer had the strength to support the weight of this rainfall.  This led to excessive water damage within the building.

Property maintenance tips

• Have a documented maintenance program in place. This requires a schedule for regularly checking the property to identify hazards as well as details on what needs to be serviced, repaired or replaced and when.
• Be aware of the out-of-sight, out-of-mind hazards. Many properties have roofs, guttering and downpipes in poor condition due to a lack of maintenance as no one has thought to get up on the roof and inspect it. Include the less obvious hazards in the maintenance program.
• Have a maintenance budget. Some maintenance work can be planned, other work will come up unexpectedly when something breaks down. You need to be able to find money to fix hazards when identified.
• Be sure to use qualified tradespeople to undertaken maintenance work. While it can be tempting to undertake some DIY and save money, the risk of things not being maintained or repaired correctly will not be worth the savings in the long term.
• If you’re a tenant, be aware of what you’re responsible for maintaining and what’s the responsibility of the landlord. Not all tenancy agreements are the same, so you need to be across the details of your agreement.
• Don’t wait to undertake maintenance till a more convenient time. There are many cases of injuries occurring due to hazards which had been identified but not yet acted upon, usually due to costs, time or not acknowledging the risk of the hazard.
• All staff have a responsibility to create and maintain a safe workspace. Some hazards will be identified through regular property inspections, however, you can’t rely solely on these inspections. Therefore, encourage all staff to continually be on the lookout for hazards and to speak up when they see something.
• Don’t think it won’t happen to you and your property. These incidents are a lot more common that many people realise.

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There are many parts of Australia which experience high humidity. For some people who love the heat, these can be great places to live and work. However, unfortunately, these humid environments aren’t without risk as they can cause significant damage to buildings.

Mould and ghosting

Mould – most of us would be somewhat familiar with mould, which is a type of fungi. It grows well in damp environments, especially when there’s poor ventilation. It can grow on many surfaces found in homes and workplaces such as carpets, timber, and walls. Mould can take on different appearances; it’s most commonly black, green, or white and can look like a stain or discoloration.

Ghosting – this is a term many people would be less familiar with. Ghosting is a build-up of soot and dust particles on walls and ceilings that appears as dark stains. Moisture in the air also contributes to this occurring.

What are the impacts?

Other than looking unsightly, ghosting doesn’t have the same detrimental impact of mould. Ghosting doesn’t pose a health risk to people, and it’s relatively easy to clean. However, if the cause of the ghosting isn’t dealt with, it’ll most likely reappear.

Mould, on the other hand, can in some instances bring significant risk to both the physical building and the health of people in that building. Cleaning away mould can be done, however the success of this depends on the extent of the mould. Professional services are available to assist with this. However, if the mould has significantly impacted and damaged materials, such as plaster on walls or carpets, these will often need to be replaced.  And as with ghosting, the cause needs to be addressed to prevent its recurrence.

Mould produces tiny particles called spores. These spores are carried in the air and can cause and exacerbate respiratory issues in people. When exposed to mould, people may suffer from a runny or blocked nose, sneezing, coughing, allergic reactions and worsening asthma. Those at high risk of these conditions or with weakened immune systems need to be particularly careful around mould and it’s advisable they don’t attempt to remove it themselves.

What causes mould and ghosting?

As mentioned earlier, damp, humid environments are ideal breeding grounds for mould and ghosting. Therefore, some locations are more prone simply due to the climate of that location. Certain times of the year will also contribute to increased humidity in the air.

However, mould and ghosting can occur in any location if the conditions are right. Significant rain, especially if it’s led to flooding, will increase the moisture in the air, even in locations which aren’t typically humid. Poor ventilation and air flow also increases the likelihood of mould and ghosting forming.

Mould and insurance

Due to the damage caused by mould, it’s common for property owners to look to claim on their insurance when this damage occurs. However, insurance generally won’t cover mould build up and damage.

Insurance can cover mould damage caused by water which has entered a premises. However, mould damage caused not by direct contact with water, but moisture in the air, will generally not be covered.

Therefore, the importance of preventing mould building up and the damage it causes can’t be underestimated.

Tips for preventing and managing mould and ghosting

• Be aware of the humidity in your location. This can vary and typically low humid environments can go through periods of high humidity.
• Be mindful of the impact of high rain and flooding on humidity, and therefore moisture in the air. Flood waters don’t need to have entered a premises for moisture to be in the air, an increase in water in the surrounding environment can cause this.
• Always be on the lookout for mould, as it can build up quickly.
• If mould is found, action it immediately before it spreads out of control.
• Cleaning mould and ghosting isn’t enough, you need to address the cause, so it doesn’t continue to appear.
• Consider using a professional service to clean mould, especially if you’re at an increased health risk.
• Opening windows for fresh air isn’t recommended in humid environments as this simply allows the humid, moist air to enter the premises. Air conditioning with windows closed is necessary to reduce humidity inside.
• Consider other ways moisture gets into the air inside and what can be done to reduce or eliminate this. For example, bathrooms should have fans installed to reduce steam build-up during showers. The use of clothes driers and stoves can also lead to steam in a property.
• There are numerous products on the market which remove or absorb dampness from the air. These can be purchased from a range of stores and are designed for placement around a home or other premises. These products have a limited lifespan; follow instructions regarding how often they should be replaced.
• If a property is being locked up for a period of time, such as vacant holiday home, consider what can be done to limit the humidity inside during this time. Can someone visit the premises to replace moisture removing products? Can an air conditioner be turned on occasionally using a timer?
• Finally, don’t underestimate the risk or impact of mould and ghosting. Taking preventative steps before it occurs can save a great deal of hassle and inconvenience down the track.

Download the pdf here.

Imagine this…

Very heavy rains are predicted for your area, much heavier than you’ve seen before. While it’s concerning you, you believe your place of business should get through ok. The property is well maintained, including the roof. Your building’s drains are cleared regularly. It’s unlikely rainwater is going to find a way into your premises.

However, before you know it, the rainwater is building up on the street outside and rising above the level of the curb. As the heavy rain continues, the water level outside continues to rise, making its way over the footpath and into your property, flowing across the floor. You hadn’t considered it entering the building in this way and you have no way of stopping it once it starts. You try to lift your stock and equipment off the floor, yet you don’t have time to get to everything.

You need to claim on insurance due to stock that had to be discarded, damaged floors and shelving which needed replacing as well as lost revenue due to being unable to open the business for a couple of days.

How could this happen?

In the case above, it was realised that a stormwater drain in the carpark outside the premises, not owned by the impacted business owner, was blocked by leaves and other debris and this led to the stormwater overflow onto the footpath and into the building.

These stormwater drains aren’t usually owned or maintained by small business owners. Therefore, this is a risk many people aren’t aware of. Unsurprisingly, many business owners focus solely on their own premises when they think about property maintenance. Yet, unfortunately, infrastructure such as stormwater drains outside your premises can impact your place of work.

How can this be avoided?

Even though you don’t have full control over the drains outside and around your building, there are things you can do to reduce the risk of the above event happening to you.

• Firstly, acknowledge the risk.  Accept that it’s not uncommon to see blocked drains and this can and does impact surrounding buildings.  By acknowledging this, you’re more likely to put risk mitigation strategies in place.
• Explore the area around your premises to make yourself aware of any stormwater drains which could impact you.  When doing this, look out for what might make these drains more at risk than others.  Is there a road sloping towards the drain?  Are there a lot of trees around which could lead to a build up of leaves over the drain?  Is the drain level with the footpath, or is there a step down from it?
• Find out who owns, and is therefore responsible, for the maintenance of these drains. This will likely be the local council. However, this could be another organisation, such as a shopping centre management, if the premises isn’t on public land.
• Contact the responsible organisation about their maintenance program, highlighting to them why this concerns you and keep a record of your communications with them.
• If you notice the drain looking unmaintained, such as there being a build-up of leaves and rubbish, contact the responsible authority, reminding them of the implications of poorly maintained drains.  Keep a record of these notifications as evidence you’ve made them aware.
• While you’re limited in what you can do to a stormwater drain you don’t have ownership over, you can clear away debris which may be blocking it. When doing this, be careful to not damage the drain in any way.

Some people may ask why they should monitor and/or clear a drain that doesn’t belong to them. If it reduces the likelihood of experiencing water entering your premises like the example above, surely it’s worth it.

Download the pdf here.