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MAJOR LOSS PROTECTION FOR ALUMINIUM FACTORIES
Why Underwriters Focus on Flood, Fire & Disaster Recovery
Aluminium manufacturing sites are exposed to high-severity loss events: a single fire in a machining bay, a severe storm that overwhelms drainage, or a flood that damages electrical systems and shuts production. Insurers don’t just look at the probability of an event — they look at how quickly you can recover.
Strong terms depend on more than sums insured. Underwriters want clear evidence of protection (detection, suppression, compartmentation, maintenance), resilience (drainage, flood barriers, critical equipment elevation), and a practical continuity plan that reduces downtime after a major incident.
Factory Flood, Fire & Disaster Recovery Risk (Aluminium Manufacturing)
This page explains the main factory perils insurers consider for aluminium manufacturing businesses and what “good risk presentation” looks like. It’s also a practical guide to the information we’ll request to secure competitive terms for buildings, contents, stock and business interruption.
Insure24 supports aluminium extrusion, casting, machining, finishing and recycling operations across the UK. We help you position your risk clearly to underwriters — especially where you rely on high-value machinery, specialist tooling, compressed air systems, furnaces/ovens, extraction or critical utilities.
- Buildings, contents, stock and high-value machinery protection
- Fire detection, suppression and compartmentation expectations
- Flood exposure, drainage resilience and storm readiness
- Business interruption, increased cost of working and indemnity periods
- Disaster recovery planning and downtime reduction
- Practical steps to improve underwriting outcomes
What Covers Are Typically Relevant?
For aluminium manufacturers, insurers usually structure major loss protection around property damage and the knock-on impact on production. Your exact cover depends on your processes, values and risk controls, but the building blocks commonly include:
- Commercial property insurance (buildings, contents, stock)
- Fire and special perils (storm, escape of water, impact, etc.)
- Flood cover (where available and appropriate for the site)
- Business interruption (gross profit / revenue basis)
- Increased cost of working (to keep production moving)
- Machinery breakdown / engineering insurance (optional but often critical)
- Goods in transit / stock off site (where relevant)
- Material damage + BI combined programme (common for manufacturers)
Fire Risk in Aluminium Factories: Typical Underwriting Questions
Fire remains one of the highest-severity perils in manufacturing. Underwriters typically look at ignition sources, fuel load, fire spread potential, and the strength of detection/suppression and management controls.
Common ignition and escalation points
Fire can start in many places: electrical distribution, machinery faults, friction heat, welding and maintenance work, charging areas, or overheated equipment. Once established, the loss severity is driven by compartmentation, fuel load (packaging, finished goods, stored consumables), and how quickly the fire service can gain control.
Controls that improve insurer confidence
Insurers like to see documented testing and maintenance, clear responsibilities, and evidence that controls work in practice. If you have sprinklers, this is a major underwriting positive — but only when maintenance, water supplies and system design are robust and documented.
- Fire alarm type, monitoring and testing regime
- Sprinklers (if present): design standard and maintenance records
- Fire doors/compartmentation and housekeeping standards
- Hot works controls: permits, supervision, post-work checks
- Electrical inspections (EICR/thermography where used)
- Waste management and separation of combustible storage
- Lithium battery/charging area controls (if applicable)
- Emergency response plan and staff fire training
Flood, Storm & Escape of Water: Reducing Downtime
Flood losses are often “slow burn” events: water damages electrics, motors and controls; stock is contaminated; and drying and decontamination delays restart. Even where flood depth is limited, the interruption impact can be severe for aluminium plants dependent on power, compressed air and CNC capability.
What insurers typically want to know
Flood underwriting is driven by location and resilience. Insurers will assess your postcode exposure, then look at what you’ve done to reduce damage and shorten recovery time — including drainage, barriers, pumps, and how you protect critical equipment and stock at low level.
- Any prior flood history (on site or local area)
- Floor levels, basements/pits and vulnerable plant rooms
- Drainage layout, maintenance and interceptor arrangements
- Flood barriers, demountables, non-return valves, pumps
- Stock storage height and critical spares storage
- Plan for rapid clean-up, drying and decontamination
- Alternative production arrangements (where possible)
Business Interruption & Disaster Recovery: Getting the Indemnity Period Right
Business interruption (BI) is often the most important part of a major loss programme for manufacturers. Property damage is the visible part of the claim — the larger cost can be lost output, delayed orders, contractual penalties and the time it takes to reinstate production.
Common BI pitfalls
Under-insuring the gross profit, selecting an indemnity period that is too short, or failing to document key dependencies (single-source suppliers, specialist machinery lead times, tooling constraints) can leave a gap when it matters most. For aluminium businesses, insurers will often ask about lead times for presses, CNC machines, tooling, transformers and specialist electrical controls.
What “good” disaster recovery looks like
A strong continuity plan doesn’t need to be corporate-grade — it needs to be realistic. Who are your critical suppliers? What is your minimum viable production? Where would you outsource or relocate? What are the key steps to restart? Showing this clearly can improve insurer confidence and, in some cases, pricing.
- BI basis: gross profit / revenue and annual figures
- Indemnity period selection (12/18/24/36 months depending on risk)
- Critical equipment lead times and single points of failure
- Increased cost of working options (temporary hire, outsourcing)
- Salvage and specialist contractors for recovery
- IT/data backup and operational restart planning
What We’ll Ask For to Quote Factory Flood & Fire Cover
The quickest route to strong terms is a clear submission. If you can provide the information below (even in summary), we can approach suitable markets and position your controls effectively.
- Site address, occupancy, processes and hours of operation
- Construction details and any cladding/roof information
- Buildings, contents, stock and machinery sums insured
- Fire protections: alarm, sprinklers (if any), compartmentation
- Electrical maintenance and hot works arrangements
- Flood/drainage details and resilience measures
- Business interruption: turnover/gross profit and indemnity period
- Claims history (typically 3–5 years) and any risk improvements
“After a significant water ingress incident, Insure24 helped us restructure our property and BI cover, improve our submission, and agree an indemnity period that matched real equipment lead times.”
Operations Manager, UK Aluminium Manufacturing SitePROTECT YOUR BUSINESS
- Factory buildings, contents and stock cover (subject to terms)
- Options for flood and wider perils where available
- Business interruption structured around realistic recovery times
- Support explaining protections to underwriters and surveyors
- Claims support and practical guidance during major incidents
FREQUENTLY ASKED QUESTIONS
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Does factory insurance cover flood and fire?
Fire is typically included within property damage cover. Flood can be included where available, but it depends on
location and insurer appetite. We’ll confirm the peril scope and any sub-limits/excesses before you proceed.
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What is business interruption insurance and do I need it?
Business interruption (BI) covers loss of gross profit/revenue following insured damage (e.g., fire), plus certain
extra costs to keep you trading, subject to the policy wording, sums insured and indemnity period.
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How long should my BI indemnity period be?
It should reflect realistic recovery time after a major loss — including machinery lead times, building works,
commissioning and getting production back to normal. Many manufacturers choose 12–24 months, but it depends on your
site and equipment.
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Will insurers require sprinklers?
Not always, but sprinklers are often viewed positively for larger or higher-risk sites. Where sprinklers aren’t
present, insurers may focus more heavily on detection, compartmentation, housekeeping and management controls.
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What information do you need to quote?
Typically: sums insured for buildings/contents/stock and key machinery, site and process overview, fire protections,
security, flood/drainage details, BI figures/indemnity period, and claims history.
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Can this be packaged within a combined aluminium manufacturing insurance policy?
Yes. Property damage and business interruption are often packaged alongside liability covers and engineering options
within a combined manufacturing programme, depending on the insurer and risk profile.