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LOWER PREMIUMS THROUGH BETTER RISK CONTROL
Why Aluminium Manufacturing Premiums Rise (and What Insurers Reward)
Insurance pricing for aluminium manufacturers is driven by loss frequency and, more importantly, loss severity. A single fire, flood, dust incident or major breakdown can produce significant property damage and months of business interruption. Underwriters look for evidence that the risk is controlled in practice — not just “we have procedures”.
The best way to reduce premiums is to reduce claims potential and improve the quality of your insurance submission: clear values, credible maintenance and housekeeping, documented inspections, and a realistic continuity plan. This page explains the practical steps that typically improve terms across property, BI, liability and engineering covers.
How to Reduce Aluminium Manufacturing Insurance Premiums
This guide focuses on risk improvements and submission upgrades that can lead to better premiums and fewer restrictive terms. It’s written for aluminium extrusion, casting, machining, finishing, anodising/coating and recycling operations.
Insure24 helps UK manufacturers position their risk to underwriters, identify “high value” improvements, and structure cover so it responds properly when something goes wrong — without paying for cover you don’t need.
- Reduce the likelihood and severity of fire, flood and major losses
- Strengthen housekeeping, dust control and maintenance records
- Improve business interruption (BI) resilience and indemnity planning
- Clarify processes, values and controls to remove underwriting doubt
- Avoid common policy gaps and “cheap today, expensive tomorrow” structures
- Make renewals easier with an insurer-ready submission pack
1) Reduce Fire & Property Loss Severity
Property losses drive some of the largest claims for aluminium manufacturers — and the underwriting response to a poor fire risk can be brutal: higher rates, larger excesses, exclusions or restricted cover. The improvements below are often viewed positively because they reduce severity and improve recoverability.
Fire detection and suppression
Demonstrate what you have, how it’s monitored, and how it’s maintained. Where sprinklers exist, provide maintenance records and confirmation of the standard/design and water supplies. Where sprinklers don’t exist, show that detection, compartmentation, separation and housekeeping are strong.
Compartmentation and separation
Underwriters worry about fire spread. Practical improvements can include: keeping high fuel loads away from production areas, separating charging stations, isolating extraction equipment, and ensuring fire doors and fire walls are maintained and respected.
- Documented alarm testing, maintenance and monitoring arrangements
- Hot works permits, supervision and post-work fire watch records
- Electrical safety: EICR schedule and thermography where used
- Combustible storage control (packaging, consumables, racking layout)
- Good housekeeping and waste removal (internal and external)
- Clear separation for charging areas and high-risk plant rooms
2) Control Aluminium Dust, Extraction & High-Risk Processes
If you machine, grind, polish, sand or recycle aluminium, combustible dust can become a key underwriting factor. Insurers will price uncertainty and weak evidence heavily. Strong controls and records can materially improve terms.
Make the risk “auditable”
Underwriters like seeing: extraction specification, maintenance logs, filter changes, inspections, housekeeping schedules, and (where relevant) DSEAR/ATEX documentation. It’s not just having controls — it’s proving them.
- Capture at source extraction and documented maintenance schedules
- Safe dust handling and storage (bins, removal frequency, segregation)
- Housekeeping controls (avoid dust re-suspension methods)
- Ignition control: hot works, friction, static, electrical faults
- Separation or safe location of dust collectors where possible
- Training and supervision records for high-risk operations
3) Improve Flood Resilience and Reduce Water Damage Impact
Flood and escape of water losses often cause prolonged downtime due to electrical damage, contamination, drying time and the knock-on delay to commissioning. Insurers reward sites that can show practical resilience measures.
Show what you’ve done
Even simple improvements can help: raising critical electrics, adding non-return valves, improving drainage maintenance, using demountable barriers, and having a rapid response plan for water ingress.
- Drainage mapping and documented maintenance/clearing schedule
- Protect critical electrics, compressors and CNC controls at low level
- Non-return valves, pumps and barrier options where appropriate
- Stock storage height controls and protection for vulnerable materials
- Rapid clean-up plan and nominated contractors for drying/restoration
4) Fix BI Weaknesses That Create Expensive Claims
BI is often where manufacturers are most exposed. If insurers believe your recovery time could be long — because of single points of failure, long lead times, or no outsourcing options — they will price that exposure.
What improves BI underwriting?
Show credible recovery planning: identify critical machines, lead times, alternatives and minimum viable production. This can reduce “unknowns” and make your BI selection more defensible.
- Indemnity period matched to real rebuild / replacement timelines
- Critical equipment list with replacement lead times and contingencies
- Outsourcing options and pre-agreed alternative production routes
- Increased cost of working planning (hire, overtime, logistics)
- Evidence of supply chain management and key supplier resilience
5) Improve Your Submission: Remove “Underwriter Doubt”
A well-controlled risk can still be priced badly if the submission is weak. Insurers price uncertainty. The goal is to provide clear, consistent, auditable information that makes it easy to quote.
What “good” looks like
A short, structured risk summary plus supporting evidence (maintenance logs, photos, site plan, values, claims narrative) often improves outcomes compared to a vague proposal form with missing detail.
- Clear process description and site layout summary
- Accurate sums insured (buildings, stock, machinery) and valuation basis
- Photos of protections: alarms, sprinklers, extraction, storage, yard
- Claims narrative: what happened, what changed, and prevention steps
- Contractor controls, permits to work and supervision records
- Any survey reports and completion evidence for recommendations
“We thought our premium increase was unavoidable. Insure24 rebuilt our submission with evidence of maintenance, housekeeping, and fire separation — and the insurer reduced the rate and removed a restrictive clause.”
Finance Director, UK Aluminium ManufacturerPROTECT YOUR BUSINESS
- Access to specialist manufacturing insurers and competitive terms
- Support implementing high-value risk improvements insurers reward
- Programme design to reduce gaps and avoid duplicated cover
- Claims and incident support to protect your long-term premium position
- Renewal-ready submissions that reduce underwriting friction
FREQUENTLY ASKED QUESTIONS
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What is the fastest way to reduce my manufacturing insurance premium?
Reduce insurer uncertainty and loss severity. Provide a strong submission with evidence of fire controls, housekeeping,
maintenance logs, accurate values and a realistic BI plan. Insurers price uncertainty and weak evidence heavily.
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Will adding sprinklers reduce premiums?
Often it helps, particularly for larger sites and higher fire loads, but outcomes depend on insurer appetite and
your overall risk profile. Even without sprinklers, strong detection, separation and management controls can improve terms.
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How do I avoid restrictive terms or exclusions?
Insurers impose restrictions where controls are unclear or where incidents suggest unmanaged risk.
Present documented controls, close off survey actions, and explain any claims with what changed to prevent recurrence.
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Does business interruption affect my premium?
Yes. BI is priced based on your exposure to downtime after insured damage. A credible recovery plan, realistic indemnity period,
and evidence of alternatives (outsourcing/contingencies) can improve how insurers view the risk.
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What information should I provide at renewal?
Provide updated values, process changes, maintenance and inspection evidence, photos of protections, claims narrative,
and any completed survey recommendations. Strong renewals reduce friction and improve terms.
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Can Insure24 help with a risk improvement plan?
Yes. We can help identify improvements underwriters value most, structure the submission, and approach suitable markets.
The aim is practical changes that reduce claims potential and strengthen your negotiating position.