Managed fire risks can reduce insurance premiums

Manufacturers are unwittingly paying over the odds for insurance because of material used in their buildings, according to experts from UK and Ireland Insurance Services.

Manufacturers are unwittingly paying over the odds for insurance because of material used in their buildings, according to experts from UK and Ireland Insurance Services.

Composite panels, insulated panels or sandwich panels aggravate fires and insurers take a hard line on them - often hiking up premiums for unsuspecting businesses.

Commercial insurance experts say it is crucial to find out what type of panels exist in the factory and what risks they present.

They are used for cladding walls and roofs, internal enclosures - particularly in food and pharmaceutical factories - compartment walls, cold store constructions and also for acoustic barriers.

Primarily as a result for better insulation under the Building Regulations, they have been used extensively over the last 20 years or so.

It is estimated that there is in excess of 60million square-metres currently in use in the UK.

Martin Nugent at UK and Ireland Insurance Services said underwriters are using a sledgehammer to crack a nut: "Nine out of ten people won't know what sort of material their panels are made of.

"Insurance companies may refuse to quote, or demand replacement of all panels irrespective of the risk or type of panel.

"It is becoming clear that too many manufacturers are overlooking their risk management in this area.

"Some panels contribute to rapid fire spread when ignited and give off toxic black smoke.

"Fire fighters have a major task because fire spreads within the core and can't easily be reached.

"Some panels are better than others but, because there is no precise information, insurers tend to treat everything as bad.

"A detailed inspection of the building will reveal areas where panels have been damaged or where openings have been made for services.

"Repairs to damage should be undertaken, and protecting openings with fire-resisting materials should be considered.

"Good fire risk management practice should also be put into place.

"Arson risks should be minimised as well as exposure to external fire by ensuring there is no storage alongside the building, particularly of wooden pallets and waste bins.

"Hot and hazardous work should also be looked at and even controls to restrict smoking".

Panels are a composite product comprising an outer thin rigid metal sheet (usually coated steel or aluminium alloy) either side of a core of insulating material.

The outer metal sheets are adhered directly to the insulation core or are fixed by an adhesive.

The types available include: expanded polystyrene (EPS), either standard grade (SG) or heavy duty (HD); extruded polystyrene (XPS); polyurethane (PUR); polyisocyanurate (PIR); modified phenolic foam (MPHEN); mineral wool (glass fibre) (MWGF); mineral wool (rock fibre) (MWRF); and cellular glass insulation (CG).

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