Businesses in England and Wales face a potential crisis when the law on fire prevention and safety changes on 1st October.

According to a statement from the Passive Fire Protection Federation (PFPF), the new fire law, which affects all non-domestic premises, is fundamentally different from previous regulations.

The law, which will focus on fire prevention, has made fire certificates defunct and states that non-domestic premises must now have a risk assessment to comply.

The PFPF warned that businesses that do not have a relevant and up-to-date risk assessment face prosecution - and their insurance may be invalidated.

Station Officer Day of the Westminster Branch of the London Fire Authority, says: “The Fire Authority will visit all business premises in an area (to check there is an up-to-date Risk Assessment). If a particular company is not operating the new principles after receiving a 14-day-notice, it could be in breach of fire regulations. As well as the ‘responsible person' being liable for the breach, the insurance on the property could be invalid.”

David Sugden, chairman, Passive Fire Protection Federation says: “Most people don't know what they're looking for, or how to look for it. How many will check beyond sprinklers and alarms? Most fire protection measures should be built into the fabric of a building.”

The PFPF said it expects SME's will be hard hit by the new law.

Matthew Knowles, spokesman for the Federation of Small Businesses, warned: "The new legislation will cause a lot of headaches in the short-term. A survey we carried out in March 2006 showed that 59% of small firms in England and Wales were unaware of the new requirements.”