Woman reaching up for smoke alarm on ceiling

Fire safety for small business

13 August, 2025

Small businesses are legally required to make their premises safe. Fire safety is a critical area of focus, not only to protect the lives of employees, customers and the public, but also to reduce the risk of disruptions to business operations and long-term reputational harm. 

If you are leasing your premises, it is best to check your lease for roles and responsibilities in relation to fire safety compliance, equipment and maintenance responsibilities. 

Business continuity planning 

Fire safety measures should be integrated into a business continuity plan. A continuity plan is designed to ensure that your business can continue to function in the face of a disruption or, if this is not possible, that it can be up and running as soon as the disruption has passed. Most importantly, a continuinty plan will help you maintain trust with your customers and others who are important to running your business. The Commission’s guide, Prepare for the unexpected - Build a Business Continuity Plan, takes you through the essential steps to build your own business continuity plan. 

Smoke alarms 

Smoke alarms must be installed and operable. Ensure the alarm is suitable to your business needs, such as remote serviced alarm systems, sprinkler systems, thermal or smoke alarms, and ensure they are regularly tested and maintained. 

Emergency evacuation planning 

Fire and Rescue NSW recommends preparing an emergency plan setting out how people should evacuate from your premises and where they should assemble in case of an emergency. Practice the plan every six months and coordinate with building management if in a multitenant property. 

Fire extinguishers 

Fire extinguishers should be installed in a visible and accessible location. Fire and Rescue NSW recommends a surrounding clearance of a minimum of 1000mm and signage so fire equipment can be easily found. Employees should be trained in how to use fire extinguishers and know which type to use for different types of fires. 

Electrical systems and machinery 

Regularly inspect and maintain electrical systems – avoid overloading power boards and check for faulty leads. Ensure machinery is kept clean and serviced in line with manufacturer instructions. If possible, switch machinery off when the business is unattended. 

Flammable materials 

Avoid storing or stockpiling flammable materials where they could be accessed by the public. Handle any dangerous goods according to NSW regulations. 

Emergency exits 

Make sure emergency exits are clearly marked, unobstructed, and unlocked during business hours. 

By following these measures, you are not only meeting legal requirements, but also safeguarding your business against the risk of fire and improving resilience should an emergency occur.