My Account
We compare quotes from leading insurers
PROTECTION FOR HIGH-SEVERITY FIRE & EXPLOSION RISKS IN ALUMINIUM CASTING AND MELTING OPERATIONS
Why Molten Metal Risk Is Different (and Needs Specialist Insurance)
Aluminium foundries, casting operations and heat processes involve extreme temperatures, combustible risks, high-energy plant and complex safety controls. When something goes wrong, losses can be catastrophic: rapid fire spread, molten metal contact with moisture, furnace breach, refractory failure, dust / fume ignition, or a chain reaction involving gas systems, extraction, filters and electrical installations.
This page focuses on how insurers look at molten metal, fire and explosion exposures — and how to structure an insurance programme that protects the building, plant, stock, liabilities and business interruption impacts that follow.
What Insurance Covers Molten Metal, Fire & Explosion Risks?
Fire and explosion risk in aluminium manufacturing is typically insured through a combination of covers. The right solution depends on your processes (melting, holding, casting, die casting, sand casting, heat treatment, finishing), your premises (standalone, multi-tenant, combined operations), and your risk controls.
We’ll help you build a programme that aligns with how underwriters actually assess foundry and hot process risk.
- Property (Fire) Insurance — buildings, contents, stock and equipment damaged by fire, smoke, heat and insured perils.
- Machinery Breakdown — sudden and accidental breakdown of insured plant (e.g., furnaces, compressors, control panels), where selected.
- Business Interruption — loss of gross profit and increased costs of working following insured damage or breakdown (wording dependent).
- Stock / Goods — aluminium billets, ingots, castings and WIP; including spoilage considerations (policy dependent).
- Public & Products Liability — third-party injury and property damage arising from your operations or products.
- Employers’ Liability — required in most UK cases where you employ staff.
- Engineering Inspection — statutory inspections for lifting equipment, pressure systems and certain plant.
- Environmental / Pollution — for material pollution exposure beyond sudden/accidental limits.
Common Molten Metal, Fire & Explosion Loss Scenarios
Underwriters want evidence you understand your “high-severity” scenarios — even if they are low frequency — and that you have engineered controls and robust operating discipline.
- Molten metal / moisture contact — violent reaction when molten aluminium contacts water, damp tools, wet charge or moisture-contaminated scrap.
- Furnace breach — refractory failure or structural failure causing a spill, fire spread and severe plant damage.
- Extraction / filter fire — ignition in ducting, extraction systems or dust collection units leading to rapid fire spread.
- Gas system incident — leak or ignition affecting burners, furnace rooms, or adjacent processes.
- Electrical arcing — high load panels, switchgear faults or control failures triggering fire and extended outage.
- Hot works ignition — maintenance welding/cutting ignites combustibles or hidden void fires.
- Forklift / vehicle fire — battery charging areas, fuel systems or collisions that ignite stored packaging/consumables.
- Heat treatment incident — kiln/oven malfunction or quench tank issues causing fire, smoke contamination and prolonged downtime.
Risk Controls Insurers Expect for Molten Metal Operations
Foundry risks are insurable — but terms depend on controls. Underwriters typically look for disciplined operating procedures, strong housekeeping and engineered safeguards, particularly around moisture control, extraction, refractory maintenance and fire protection.
Controls that strengthen your insurance presentation
- Moisture management — dry charge policy, scrap inspection, covered storage, tool preheating, controlled quench processes.
- Refractory management — inspection regime, documented relines, spares strategy, integrity checks and competent contractors.
- Extraction maintenance — scheduled cleaning, inspection of ducting, fire dampers, spark detection where appropriate.
- Fire detection and alarm — suitable detection for dusty/hot environments and monitored alarm response.
- Sprinklers / suppression — where practical for building protection (and carefully designed around hot process areas).
- Separation — distance/firewalls between melting areas and combustibles; controlled storage of packaging and consumables.
- Hot works permits — enforced PTW, fire watch, isolation, and post-work inspections.
- Training and competency — operator training, PPE, emergency drills, spill response and first aid readiness.
Fire & Explosion Losses Are Often BI Losses First
Even if physical damage is contained, the interruption can be severe: specialist furnace lead times, control system commissioning, refractory relines, extraction rebuilds, and regulatory clearance can delay restart. That’s why molten metal risks should always be paired with correctly structured Business Interruption cover (gross profit sums insured, increased cost of working, and realistic indemnity periods).
Indemnity period guidance
For foundry and hot process risks, 12 months can be too short if your key plant is specialist. Many manufacturers consider 18–24 months depending on plant lead times, complexity and the availability of alternative capacity.
How to Get Molten Metal, Fire & Explosion Risk Insurance
- 1. Map your hot processes — furnaces, holding, casting, heat treatment, quench, extraction and finishing.
- 2. Share your controls — moisture management, refractory regime, housekeeping, PTW and fire protection.
- 3. Confirm sums insured — buildings, plant, stock and realistic BI gross profit with an adequate indemnity period.
- 4. Review exclusions — ensure policy wording matches your operations (e.g., hot work, molten metal processes, dust risks).
- 5. Bind and evidence — documentation ready for landlords, OEM audits and contracts.
“Our insurer wanted clear evidence of refractory inspections and moisture controls. Insure24 helped us present the risk properly and secure cover with workable terms.”
Operations Manager, Aluminium Casting FacilityPROTECT YOUR BUSINESS
- Property and BI solutions designed for high-temperature aluminium processes
- Support for insured fire, explosion and critical plant failure scenarios
- Help aligning sums insured and indemnity periods to real-world recovery times
- Clear risk presentation for underwriters (controls, processes and housekeeping)
- Optional extensions for machinery breakdown BI and supplier dependency (policy dependent)
FREQUENTLY ASKED QUESTIONS
+-
Is molten metal risk covered under standard property insurance?
Molten metal operations can be insured under property policies, but terms, exclusions and risk information requirements vary. Insurers will usually want details on your hot processes, refractory regime, moisture controls and fire protection before offering terms.
+-
What is the biggest fire and explosion risk in aluminium casting?
One of the most severe risks is molten aluminium contacting moisture (water, damp tools, wet scrap or condensate), which can cause a violent reaction and metal ejection. Extraction fires and furnace/refractory failures can also drive major losses.
+-
Do insurers require sprinklers for foundries?
Not always, but strong fire protection helps access broader markets and better terms. In some premises, sprinklers or suppression can be recommended for building protection, while hot process areas may need careful design and separation measures rather than direct water application.
+-
How should we set business interruption for molten metal risks?
Focus on realistic recovery time for specialist plant (furnaces, control systems, extraction rebuilds) and choose an indemnity period that matches worst-case lead times. Many manufacturers consider 18–24 months where replacement and commissioning could be lengthy.
+-
Does machinery breakdown cover furnace failure?
It can, depending on what is insured and the definition of breakdown. Policies are designed for sudden and accidental failure, and may have conditions around maintenance and inspection. We’ll help structure engineering cover that fits your critical plant.
+-
How quickly can Insure24 arrange cover for foundries and hot processes?
Indicative terms can often be obtained quickly once your core details are provided, but molten metal risks usually require deeper underwriting. The more clearly you can evidence controls and processes, the faster terms can progress.