insurance & food factory construction paul collins
TRANSCRIPT
Insurance & Food Factory Construction
Paul Collins
Contents
• Introduction to Mitsui Sumitomo at Lloyd’s (MSL)
• Our approach to Risk Engineering
• Historical context – why involve insurers?
• Building Regulations for new construction – Fire Safety
• Insurers’ requirements for new construction
• Summary
Non-Life Insurer Ranking in Global Market
Introduction - Growth of the Syndicate
Our approach to Risk Engineering
• One of the three core values of MSL:- Underwriting Claims Risk Engineering
• Use of professional risk engineering consultants
• Partnership approach with client and broker
• Practical and innovative solutions
• Account management philosophy
• Mutual benefit to MSL and client Reduces frequency and severity of claims
Introduction – Who we work with
Why involve insurers?
• Food industry as a sector has experienced considerable losses – insurers want to be involved
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2003 2004 2005 2006 2007 2008 2009 2010YTD
£ M
Common features of losses:-
• Extensive combustible construction
• No active fire protection
• Good management standards overall
• Prompt response from Fire Brigade
• Business Continuity Plans of little benefit
Why involve insurers?
• It demonstrates a commitment to managing risk
• Supports a partnership approach with insurers and brokers
• Insurers have a lot of technical expertise to feed into projects
• Insurers do not want to have to ask for retrospective improvement on a newly constructed building
• Involving your broker and insurers at an early stage will ensure no hidden cost further down the line
Building Regulations – Approved Document BFire Safety
• B1 Means of Warning & Escape
• B2 Internal fire spread (linings)
• B3 Internal fire spread (structure)
• B4 External fire spread
• B5 Access and facilities for the fire service
• Primarily concerned with life safety –
complements insurer recommendations
FPA Food Processing Factories 1: Design Principles
• Deals with design principles for passive fire safety
in food processing factories.
• Applicable to new builds and extensions
• Guidance if followed will help to minimise the extent of fire and smoke damage
• Not requirements, but a useful starting point for discussion with interested parties
• The principles applied should be building and
occupancy specific
The specification of the construction of the building will include the following considerations:
• The types of processes to be undertaken
• The nature of, and fire hazards represented by, the equipment and goods in the building, and in particular their likelihood to support fire development
• The fire load within the building
• The financial exposure.
FPA Food Processing Factories 1: Risk Assessment
FPA Food Processing Factories 1: Risk Assessment
New buildings & extensions:
• Hazards should be considered and understood
• Can the hazards be replaced, or re-engineered to minimise the risk?
• If not; will management controls be sufficient to reduce the risk to an acceptable level?
• Ultimately, specific recommendations on construction including compartmentation or active fire protection may be made
FPA Food Processing Factories 1: Risk Assessment
• Insurer recommendations for fire protection will be based on a number of factors:
– The severity of the hazards presented– The asset values of the facility– The business criticality of the site
• Food companies should consider– Reputational damage caused by a loss or interruption– Loyalty of customers in the event of an interruption to
production– Future access to insurance market at viable insurance rates
FPA Food Processing Factories 1: Construction
• LPCB/FM approved panels or non-combustible construction is normally a requirement
• Insurers may have a preference for non-plastic based insulation – mineral fibre, stone wool etc.
• All panels must be installed in line with their approvals – stitching, unsupported panel length, orientation etc.
• No polystyrene!!
FPA Food Processing Factories 1: Construction
• Detailing of service penetrations needs careful consideration
• Flue and service penetrations through panels need to be carefully detailed
• Fire stopping of services and detailing of fire walls, shutters will need
FPA Food Processing Factories 1: Fire separation
• High hazard processes may need separation– Fryers– Ovens– Thermal oil systems– Specific guidance provided in design guide
• Plant rooms – electrical, ammonia refrigeration, vacuum pumps
• Between storage and manufacturing
FPA Food Processing Factories 1: Fire Protection
• Consider sprinkler protection– Up to 70% premium discount for fully compliant systems– Minimises down time following a fire as uses less water than
brigade– Reliable, proven track record of fire control– Provides further flexibility in the design
• Automatic fire detection – Full coverage L1/P1 to BS 5839 Pt 1 desirable
• Specific hazards may warrant localised fire protection– Fryers– Ovens– Thermal oil boilers– Critical plant rooms– Dryers
Other considerations
• Services– Lighting – suitably specified, IP rating….
– Power – location of transformers…
– Redundancy of supplies generally
• DSEAR– Hazardous zoning
– Rating of electrics
– Explosion suppression/venting
– Undertaking the operational risk assessment
Other considerations
• External Areas− Where will pallets and plastic trays be stored− Proximity of other plant and equipment – silos, oil storage
• Cold weather precautions− Vulnerability of equipment to freezing− Roof void temperatures− Fire pump houses− Non heated areas
When it goes wrong
Managing Change – Thermal Oil Installation
New thermal oil installation Serious design flaws No professional project
management No insurer involvement Poor housekeeping &
maintenance No method statements. Enclosure deficiencies. Expansion pipe routed internally Combustible panels not
adequately cut away No retention to the thermal oil
enclosure
Summary
• Food production facilities provide some complex risk engineering challenges
• Due to large losses in the sector associated with legacy issues, new builds come under scrutiny
• Early engagement with brokers and insurers is essential for new builds and extensions
• Not all elements of the design will meet insurers’ initial recommendations – compromises need to be discussed
• Construction materials still key issues for insurers
Summary
• Higher fire risks must be compartmented or have fire protection systems (or both)
• Investment in incorporating insurer recommendations at the design and construction phase will ensure businesses obtain the most competitive insurance terms in the future
Thank you - Questions?