The real costs of water leaks for UK businesses

Did you know that over 50% of insurance claims in commercial properties are related to water leaks? This alarming statistic is just a sign of what’s to come for commercial properties in the UK over the next few years due to aging infrastructure, climate change and other factors. In the commercial sector, individual commercial water leak incidents have resulted in losses exceeding £1 million. This highlights the significant financial impact of commercial water leaks and provides insight into why water leaks are an area of concern for all properties in the UK as well as why leak detection services are so vital.

In this blog article we will be discussing: 

• What a commercial water leak is
• The financial impact of a commercial water leak
• Operational impacts
• Risk mitigation
• Leak detection and prevention

What is a commercial water leak?

A commercial water leak is an escape of water that occurs inside of or on the grounds of a commercial property, such as office buildings, warehouses, retail spaces, or industrial facilities. Due to the scale of commercial properties in comparison to a residential home it becomes significantly more difficult to locate and fix a leak. A larger property often with more complex plumbing and heating means that not only is the leak more difficult to locate, any many cases it can also be more severe. Central heating leak detection is more common than you may think.

The leak can also originate from several different water sources such as:

• Damaged pipes
• Faulty plumbing fixtures
• Aging infrastructure
• Appliances

Commercial water leaks often involve substantial water volumes, affecting multiple areas or systems within a property. These leaks can lead to extensive structural damage, expensive repairs, and disruptions to daily business operations. This makes the prompt identifying and addressing of commercial water leaks crucial to reduce water waste, prevent mould growth, and safeguard the property’s structural integrity and reduce business downtime.

What is the financial impact of water leaks on a business?

When it comes to the financial impact of a commercial water leak there is far more to look at then just the cost of the repairs. In this section we will address the different ways in which a water leak in your property will impact your business financially.

Operational disruptions

It’s safe to assume that we can all agree that business downtime is one of the biggest impacts a business can face. Any amount of time where you’re not making money, you’re unfortunately losing it. Your staff and bills still must get paid regardless of if the business is making money or not. A water leak may seem insignificant but when you look at it from this perspective, that small leak becomes a major issue.

Any form of disruption that stops your business from operating as usual should be handled with urgency. So why is it that when it comes to leaks, we often wait for matters to get worse before we solve them? It’s often because issues that start off small don’t even seem like issues until they drag your business to an unexpected halt. According to the Howden Group, a serious escape of water event potentially halts operations for up to fifty working days, which can be crippling for small businesses.

Sky high water bills

Undetected leaks have a greater financial impact than just disruption to your business. An ongoing leak that goes undetected for a long period of time is almost the same as leaving a tap running at home. That escape of water, over time will add up to some pretty expensive water bills. For a large commercial premises, the impact of the leak on your bills will likely be even higher. In addition to the loss of water running up your water meter, an escape of water also has another side effect.

A leaking water system will lose pressure which leads to your taps also losing water pressure. With a lack of water pressure, you often must compensate by running the tap for longer, which will also drive up those water bills.

Repair Costs

The most obvious cost to consider is the price of the repair work. It’s not always just the leak that will need fixing. If the water leak has gone undetected or untreated for a while, the water damage can be substantial. Because water pipes and central heating pipes are within walls and ceilings, the water damage can affect large areas very easily. But the presence of a leak and water damage also increases the chances of secondary damage occurring. If secondary damage does occur, the repair costs will go up significantly. For example, mould is the most common form of secondary water damage. Mould removal will add to your final repair costs.

How to mitigate the risks of water leaks

We can all agree that it’s better to prevent an issue than to deal with the consequences of one. There are so many effective ways that you can reduce the risk of a water leak occurring at your business. The cost of water leaks will always be more expensive than the cost of preventing one so why waste time and money letting a leak occur?

Here are a few steps and measures you can take to mitigate the risks and protect your business and peace of mind:

• Proactive maintenance – Receiving regular plumbing and central heating checks can help identify areas of concern before they result in an expensive problem. 
• Investing in leak detection technology – As time passes and technology improves there are an array of water management and leak detection systems available. For businesses especially these are a great investment to make. They can detect leaks as soon as they occur.

Why prevention is more cost-effective

As the name suggests, an undetected or hidden water leak can go long periods of time without being identified. Theres no telling how much damage can occur during the time before a professional leak detection service is able to locate the leak and carry out repairs. Those leak detection costs; repair costs and elevated bills are all factors that compound and lead to an expensive issue. Not to mention the potential costs that would ensue if your business were to have to close because of a water leak. 

Investing in a leak detection system and regular plumbing checks may seem like a costly investment to make in the short-term but over time it will save you a lot of money. However, if you have experienced a water leak in your commercial property, hiring a trusted leak detection specialist is the most cost-effective thing you can do. An expreinced and reputable leak detection specialist has the knowledghe and tools at their disposal to locate the leak and either apply a fix or recommend the best course of action. 

Although prevention is better than cure, if you suspect that your business does have a hidden leak you should look to solve the problem as quickly as possible. Leak detection tools are highly specialised tools designed to detect an escape of water in the least destructive way possible. Common tools utilised during a leak detection service are:

• Thermal imaging cameras
• Moisture meters
• Acoustic leak detectors
• Tracer gas and liquid
• etc.

Conclusion

Water leaks are a silent but costly threat to UK businesses, leading to operational disruptions, soaring bills, and expensive repairs. Left unchecked, they can cause severe structural damage and force businesses to close temporarily, sometimes permanently. Investing in proactive maintenance and leak detection technology is the smartest way to protect your business from unexpected costs and downtime. 

If you suspect or are experiencing a water leak in your commercial property, don’t wait for the damage to escalate. Contact us today for expert leak detection and fast, effective solutions to keep your business running smoothly.