Financial consequences of water system non-compliance
Ensuring the safety and reliability of water systems is absolutely critical for public health and environmental sustainability. Non-compliance with water system regulations can lead to severe financial repercussions for businesses.
In this blog, we’ll explore the various costs associated with water system non-compliance and what control measures you can put in place to avoid non-compliance.
What are the regulations?
In the UK, the main Legionella regulations are supported by primary health and safety laws which include:
• The Health and Safety at Work etc Act 1974
• Management of Health and Safety at Work Regulations 1999
• Control of Substances Hazardous to Health (COSHH) Regulations 1999
The HSE publishes a document, known as Legionnaires’ Disease – The control of Legionella bacteria in water systems, which includes the Approved Code of Practice and guidance on regulations. It’s aimed at duty holders, including employers, those in control of premises and those with health and safety responsibilities for others, to help them comply with their legal duties in relation to legionella control.

Regulatory Fines and Penalties
We regularly read news about companies fined for non-compliance in the media. Recent penalties awarded include £900k to a care home where a Health and Safety Executive (HSE) investigation found that, sadly, the risk of Legionella was poorly managed, with staff inadequately trained and supervised. The residents were a particularly vulnerable group due to their age and underlying health issues, putting them at a higher risk of contracting Legionnaires’ disease.
A second example is of a Facilities Management company that was fined £600K after an inmate unfortunately died from Legionnaires’ disease. Water samples from his cell and nearby shower blocks tested positive for legionella.
Increased operational costs
Increased operational costs can result from emergency work, additional staff training, or system upgrades. To cover these expenses, it may be necessary to reallocate budgetary resources, potentially impacting other critical projects essential for business success.
Legal Liabilities
The legal process includes administrative and legal fees which can easily run into the thousands of pounds. Additionally, depending on the nature of the case, there may be further costs related to litigation and settlements, creating serious financial implications for the organisation involved.

Loss of Public Trust and Reputation
A strong reputation is a valuable asset for any business, as it fosters customer loyalty and attracts new clients. However, incidents that lead to public scrutiny can severely damage this reputation. Companies with a tarnished reputation may struggle to regain the trust of their customers and may even face long-term impacts on their market positioning and overall business success.
Increased Insurance Premiums
Following a claim, businesses often experience an increase in their insurance premiums. Insurance companies assess risk based on previous claims, and a history of claims can signal a higher likelihood of future incidents. This heightened risk perception typically leads insurers to adjust their rates, resulting in higher costs for the business. Such increases can significantly impact a company’s financial planning, leading to further budget constraints.
How to avoid financial repercussions
You can minimise your Legionella risk by following the steps in the L8 ACoP, issued by the HSE (Health & Safety Executive).
• Identify and assess any potential sources of risk
• Sufficiently manage those risks identified
• Put in place appropriate preventative measures
• Keep detailed and accurate records of any testing, results or work carried out
A water services specialist, such as Swiftclean, can work with you to create a tailored Legionella control plan that fits your needs and creates a cleaner, safer and healthier environment for all.
Conclusion

The consequences (financial or otherwise) of water system non-compliance extend far beyond fines and penalties. From operational disruptions to legal liabilities and reputational damage, the costs can be overwhelming. By prioritising compliance through proactive measures, organisations can safeguard their financial stability, public trust, and long-term sustainability.
Non-compliance is costly—both financially and ethically. Investing in your water system compliance today is an investment in a healthier, more secure future for all.