A serious fire can leave a business facing damaged premises, lost stock and a prolonged interruption to trading. Published research helps explain the scale of those losses, but the best-known figures describe different years and different groups of fires. This guide sets out what each estimate covers, alongside current evidence on ignition sources and practical fire prevention.
Reviewed 15 October 2026. Cost evidence below covers 2009–2019, 2018 and the year ending March 2020; it is labelled by period and coverage. Ignition-source figures cover England in 2025/26.
Key facts and figures
- £12.0 billion was the estimated economic and social cost of fire in England in the year ending March 2020, at that year’s prices.
- £8.8 billion of that England 2019/20 total was expenditure in anticipation of fire, including prevention and protection.
- £940 million in industrial and commercial fire and explosion claims was incurred by ABI members in the UK in 2018, excluding business interruption.
- £657,074 was the average recorded loss in an FPA sample of 4,782 major UK building fires during 2009–2019.
- 43% of recorded losses in the FPA’s 2009–2019 major-building-fire sample were building damage.
- £808 million of losses in that historical FPA sample involved industrial processing and manufacturing premises.
What the major-fire cost estimate covers
The Fire Protection Association research published in 2020 reported an average recorded loss of £657,074 across 4,782 major UK building fires between January 2009 and December 2019. The sample covered reported losses of at least £100,000 and included commercial, public and residential or mixed-occupancy buildings. It describes this historical group of large losses; an individual business’s loss will depend on the incident and its circumstances.
Within that sample, building damage represented 43% of recorded losses and business interruption represented 18%. The remainder included contents, machinery, stock and other losses. These are shares of recorded losses across the sample, rather than a cost breakdown that applies to every fire.
A business’s recovery plan should consider the different consequences of a fire:
- Property and building damage — repairs after fire, smoke and firefighting water damage.
- Stock and equipment loss — replacement materials, machinery, IT and finished goods.
- Business interruption — disrupted trading, temporary accommodation and the time needed to restart operations.
- People costs — supporting staff and managing changes to working arrangements.
- Customers and contracts — maintaining communication and service while normal operations are interrupted.
The wider economic cost of fire
The Home Office economic and social cost study, published in 2023, estimated a total of £12.0 billion for England in the year ending March 2020, at that year’s prices. This includes £8.8 billion spent in anticipation of fire, as well as the consequences of fires and the fire-and-rescue response. It covers the wider economy and society, beyond losses to businesses.
For insured commercial losses, Business Sprinkler Alliance evidence to Parliament reported that ABI members incurred £940 million in UK industrial and commercial fire and explosion claims in 2018, excluding business interruption. This is a historical claims figure, and “incurred” claims are not the same as cash paid out during that year. These estimates have different coverage and should not be added together.
Planning for losses beyond insurance
Insurance can support recovery, but the cover available depends on the policy, its limits, exclusions and the information supplied to the insurer. Businesses should check whether buildings, contents, stock and business interruption cover reflect their current operations and the time needed to recover.
A serious fire can interrupt trading and threaten a business’s survival. A continuity plan should address alternative premises, suppliers, essential records, customer communication and cash-flow pressure. Review the plan alongside the fire risk assessment and insurance arrangements.
How losses varied in the major-fire sample
Industrial processing and manufacturing accounted for £808 million of recorded losses in the FPA’s 2009–2019 sample. Retail represented 15% of incidents in that sample. Both figures describe selected major building fires, rather than current annual sector totals or the likelihood of a fire at any one premises.
The table keeps the period and coverage beside each estimate. The historical loss figures are separate from the England-wide economic cost study.
| Measure and period | Figure |
|---|---|
| Average recorded loss, FPA major UK building-fire sample, 2009–2019 | £657,074 |
| Economic and social cost of fire, England, year ending March 2020, prices for that year | £12.0 billion |
| ABI-member UK industrial/commercial fire and explosion claims, 2018; excludes business interruption | £940 million |
| Expenditure in anticipation of fire, England, year ending March 2020, prices for that year | £8.8 billion |
| Industrial processing/manufacturing losses, FPA sample, 2009–2019 | £808 million |
| Building damage share of recorded losses, FPA sample, 2009–2019 | 43% |
| Reported major UK building fires in the FPA sample, 2009–2019; losses at least £100,000 | 4,782 |
What ignition-source data shows
The latest official ignition-source table, FIRE0602, records 2,304 fires involving electrical distribution as the ignition source in other buildings in England in 2025/26. This was about 17% of the 13,679 fires in that category. “Other buildings” includes workplaces and other non-dwelling premises, so it is broader than businesses alone. An ignition-source classification does not, by itself, establish that equipment was faulty.
Risk assessments should consider electrical equipment alongside cooking, heating, smoking, deliberate ignition and hot work where relevant. Inspection, maintenance and good housekeeping help identify and manage the hazards present at the premises.
Investing in appropriate fire precautions
The cost of a fire risk assessment, training or system maintenance depends on the premises and the work required. Obtain quotations with a clear scope, and plan for ongoing maintenance and review. A historical average large loss cannot, on its own, calculate the financial return from a particular precaution.
HSE fire-safety guidance explains the importance of assessing risks, controlling ignition sources and combustible materials, maintaining suitable precautions and preparing staff for an emergency. A suitable fire risk assessment helps determine the measures and competent support the business needs.
Protect your premises — make sure your team has trained fire wardens in place.
Explore the Fire Warden / Fire Marshal Course →Sources & references
- Home Office — Economic and social cost of fire: England, year ending March 2020 (published 2023)
- Fire Protection Association — 2009–2019 major-building-fire research, press release published by CIC (2020)
- FPA principal consultant — scope and findings of the 2009–2019 large-loss research (2021)
- Business Sprinkler Alliance — parliamentary evidence on 2018 ABI-member claims (2020)
- Official fire statistics data tables — FIRE0602, ignition sources, England 2025/26
- HSE — Introduction to fire safety
Mark writes about workplace fire safety, compliance and online training for Fire Marshal Training, part of Online CPD Academy.