How Insurers Assess Risk in Brick & Block Factories (UK)

Introduction

Brick and concrete block manufacturing is a high-energy, high-throughput process. You’ve got heavy plant, heat, dust, moving vehicles, and large stock values—often all on one site. From an insurer’s point of view, that combination can produce severe losses: major fires, machinery breakdowns, injury claims, and business interruption that can run for months.

This guide explains how insurers typically assess risk in brick & block factories in the UK, what underwriters look for, and what you can do to present your business well at renewal.

1) The insurer’s starting point: what are they actually trying to price?

Insurers aren’t only pricing the chance of “a claim.” They’re pricing:

• Frequency (how often something is likely to go wrong)
• Severity (how big the loss could be when it does)
• Control (how well you prevent incidents and limit damage)
• Resilience (how quickly you can recover and keep trading)

A brick & block factory can have low-frequency but very high-severity events—especially for fire, explosion, and business interruption. That’s why insurers focus heavily on worst-case scenarios, not just day-to-day minor incidents.

2) Core covers insurers consider for brick & block factories

Most brick and block manufacturers buy a package or commercial combined policy, typically including:

• Property damage (buildings, plant, stock)
• Business interruption (BI) (lost gross profit, increased cost of working)
• Employers’ liability (EL)
• Public/products liability (PL/Product)
• Engineering inspection and machinery breakdown
• Commercial motor (fleet, HGVs, forklifts on-road where applicable)
• Environmental liability (where exposures justify it)
• Cyber (increasingly relevant for production and logistics)

Underwriters may assess these separately, but the same site facts influence them all.

3) Site and process: the “story” of your factory

Underwriters want a clear, accurate picture of how you operate. They’ll look at:

• What you manufacture (clay bricks, concrete blocks, pavers, specialist products)
• Production method (kiln-fired, autoclaved aerated concrete, vibro-pressed blocks)
• Throughput and shift pattern (single shift vs 24/7)
• Age and condition of plant (kilns, mixers, conveyors, crushers, dryers)
• Layout (separation between production, storage, maintenance, offices)
• Utilities (gas, electricity capacity, compressed air, steam)
• Maintenance approach (planned preventative maintenance vs reactive)

A well-presented “site narrative” reduces uncertainty. Uncertainty is expensive in insurance.

4) Fire risk: the biggest driver for many factories

Fire is often the dominant peril because it can destroy buildings, plant, and stock—and trigger long BI claims.

Key fire exposures insurers focus on

• Heat sources: kilns, dryers, burners, hot surfaces
• Combustible materials: packaging, pallets, oils, greases, dust accumulation
• Electrical risk: high-load equipment, older switchgear, temporary repairs
• Hot works: welding, cutting, grinding during maintenance
• Vehicle fires: forklifts, telehandlers, HGVs, charging areas
• External fire spread: waste storage, pallets, vegetation, boundary issues

What good looks like

• Documented hot works permit system and contractor control
• Housekeeping standards (dust control, waste removal, clear access)
• Fire detection and alarm appropriate to the environment
• Fixed fire protection where suitable (sprinklers, deluge, foam systems)
• Fire compartmentation and separation distances between high-risk areas
• Hydrants, water supplies, and access for fire and rescue
• Regular electrical inspections and thermographic surveys

If you can demonstrate strong prevention and strong protection, you’re not just reducing the chance of a fire—you’re reducing the maximum loss.

5) Dust, particulates, and explosion considerations

Brick and block factories can generate dust from:

• Crushing and screening
• Handling dry cement, lime, or additives
• Cutting, grinding, and finishing

While not every dust is explosible, insurers will still ask about:

• Dust extraction systems and maintenance
• Cleaning regimes (especially high-level surfaces)
• ATEX/DSEAR assessments where relevant
• Ignition source control (static, hot surfaces, electrical)

Even where explosion risk is low, dust can worsen fire spread and cause equipment wear.

6) Machinery breakdown and engineering risk

A lot of brick & block manufacturing relies on continuous processes. When a key machine fails, the cost isn’t only repair—it’s lost production, missed contracts, and knock-on logistics costs.

Underwriters and engineering insurers will look at:

• Critical plant list (kilns, presses, mixers, conveyors, compressors)
• Maintenance records and planned shutdowns
• Spare parts strategy (on-site spares vs long lead times)
• Condition monitoring (vibration analysis, oil analysis)
• Statutory inspections (pressure systems, lifting equipment)

If your BI sum insured is based on a “best case” repair timeline, insurers may challenge it. They’ll want to know: if the kiln is out, how long until you’re back to full output?

7) Business interruption: where underinsurance bites hardest

BI is commonly underinsured because it’s harder to calculate than buildings or plant.

Insurers assess:

• Gross profit basis and turnover trends
• Indemnity period (12, 18, 24, 36 months)
• Single points of failure (one kiln, one press line, one power supply)
• Dependency risks (key suppliers, key customers, transport routes)
• Alternative production options (subcontracting, sister sites)

A factory may physically rebuild in 9–12 months, but full production and customer retention can take longer. Choosing the right indemnity period is a major underwriting conversation.

8) Liability risk: people, products, and site visitors

Employers’ liability (EL)

Insurers will look at:

• Accident history and near-miss reporting
• Training and competence (forklift, plant, maintenance)
• Traffic management (segregation of pedestrians and vehicles)
• Manual handling and ergonomics
• Control of contractors
• Health surveillance where needed (dust, noise)

Public and products liability

For brick and block products, underwriters may ask about:

• Quality control and testing (strength, dimensions, batch records)
• Traceability (batch coding, delivery records)
• Contract terms and fitness-for-purpose exposures
• Who installs the product (your staff vs third parties)

If a product defect leads to structural issues, claims can be complex and expensive. Clear QA and traceability can materially improve underwriting confidence.

9) Fleet and on-site vehicle risk

Even if most vehicle activity is on private land, insurers care about:

• Forklift and telehandler management
• Speed limits, one-way systems, reversing controls
• Yard surface condition and lighting
• Driver training and authorisation
• Charging and refuelling arrangements

Vehicle impacts can cause property losses too—damaged racking, knocked pipework, or compromised building structure.

10) Environmental and pollution exposures

Brick & block factories may have:

• Fuel and oil storage
• Process water and settlement systems
• Cement and additive storage
• Waste handling and recycling

Insurers may ask about:

• Bunding and spill control
• Drainage plans and interceptors
• Incident response procedures
• Environmental permits and compliance history

A pollution incident can trigger clean-up costs, third-party claims, and regulatory action.

11) Security and theft: not just a “crime” issue

Theft and malicious damage can drive claims, especially for:

• Diesel and fuel
• Copper and cabling
• Tools and portable plant
• High-value spares

Underwriters look at:

• Perimeter fencing and gates
• CCTV coverage and retention
• Intruder alarm grading and monitoring
• Lighting and access control
• Out-of-hours procedures

Security also links back to fire risk: arson is a concern on some industrial sites.

12) Management, documentation, and “risk maturity”

Two factories can look similar on paper but price very differently based on how well risk is managed.

Insurers value:

• A named person responsible for H&S and risk
• Formal risk assessments and method statements
• Contractor management and permit-to-work
• Incident investigations with corrective actions
• Regular audits and board-level oversight

If you can show a consistent system—not just a folder of documents—you’re easier to insure.

13) What information insurers typically ask for (and why)

Expect questions such as:

• Full site address, construction, and occupancy (baseline property risk)
• Sum insured breakdown (buildings, plant, stock, BI)
• Process description (where the heat, dust, and pinch points are)
• Fire protections (detection, sprinklers, hydrants, separation)
• Claims history (patterns and lessons learned)
• Risk improvements completed or planned (trajectory matters)
• Maintenance and inspection records (predictability of breakdown)
• Security details (theft and arson control)

The goal is to reduce unknowns. The more unknowns, the more conservative the insurer must be.

14) Practical steps to improve your risk profile before renewal

Here are actions that often help brick & block factories present better to insurers:

• Create a one-page site overview: layout, key processes, protections, photos
• Review BI calculations and choose a realistic indemnity period
• Tighten hot works controls and keep permit records
• Improve housekeeping with documented schedules and accountability
• Commission electrical testing and consider thermography
• Map critical spares and lead times (and stock key items)
• Run a fire drill and update the emergency plan
• Document contractor controls and site induction
• Review yard traffic management and pedestrian segregation

Even small improvements can change the underwriter’s view if they reduce severity.

15) How to talk to insurers: make it easy to say “yes”

When you present your risk, aim for clarity:

• Be upfront about past issues and show what changed
• Provide photos and simple diagrams
• Separate facts from plans (and give dates for planned works)
• Explain what would happen after a major loss (your recovery plan)

A good submission doesn’t just “ask for a quote.” It tells the underwriter why your factory is a controlled risk.

Conclusion

Insurers assess brick & block factories by looking at the full picture: fire and heat sources, dust and housekeeping, machinery reliability, people and vehicle safety, security, and—crucially—how quickly you could recover from a major event.

If you’d like, I can tailor this into a broker-style insurer submission checklist (the exact questions and evidence to include) and add a short call-to-action section for Insure24 to drive enquiries.