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A PRACTICAL CHECKLIST TO BUILD A RELIABLE STEEL INSURANCE PROGRAMME
Why Steel Manufacturers Need a Specific Insurance Checklist
Steel manufacturing is not a “standard factory risk.” The biggest losses are often multi-section events: a fire or electrical incident damages plant, machinery breakdown follows, production stops, deliveries fail, and customers or contractors become involved. If your policy programme is built from generic covers without the right wording alignment, you can end up with delays, disputes, and gaps when the claim is already stressful and time-critical.
This checklist is designed to help steel manufacturers (including EAF operations, rolling/finishing lines, stainless/alloy processing, heat treatment and specialist steel production) confirm they have the right cover, the right limits, and-just as importantly-the right evidence for insurers. It also helps you prepare for renewal by building a stronger underwriting submission.
Insure24 arranges specialist steel manufacturing insurance programmes across the UK. If you want, we can review your current schedule against this checklist, highlight common gaps, and help you improve terms without simply “buying more cover.”
THE 4 AREAS THIS CHECKLIST PROTECTS
How to Use This Checklist
Work through each section and tick off what you already have. Where you see “policy dependent” items, that’s a flag to check wording and endorsements - not just the policy title. Steel manufacturing claims often hinge on definitions, extensions, and how breakdown and business interruption coordinate.
1) Assets & Property Checklist (What Must Be Correct)
Underinsurance is one of the most common claim problems in manufacturing. For steel sites, it can appear in unexpected places: electrical infrastructure, control rooms, extraction systems, cranes, specialist plant, and high-value stock/WIP peaks. Start by confirming your sums insured and what basis they’re declared on (typically reinstatement/replacement, not market value).
Buildings & Site Infrastructure
- Buildings sum insured reflects full reinstatement (incl. professional fees, debris removal, inflation)
- Electrical rooms / substations included and not overlooked
- Specialist foundations and heavy plant bases accounted for
- External yards and storage areas addressed (security + storm/flood considerations)
- Utilities (gas, water, compressed air, power distribution) included where applicable
Tip: Insurers like clarity on construction, fire separation, detection/suppression, and housekeeping because severity can escalate fast on industrial sites.
Plant, Machinery & Critical Equipment Values
- Plant & machinery values reflect replacement cost (including import/lead time risk where relevant)
- Crane and lifting equipment included (and statutory inspections up to date)
- Extraction/filtration systems and ducting included
- Controls/PLC panels and automation systems included
- Transformers/switchgear values declared where appropriate
Tip: create a simple “critical machinery list” for underwriting and BI planning (what stops production if it fails).
Stock, Materials & Work in Progress (WIP)
- Peak stock values declared (not just average)
- High-value alloys/stainless and specialist grades considered
- WIP definition understood (what is counted as WIP under the policy?)
- Outdoor storage declared if applicable (and insured per policy terms)
- Seasonal peaks communicated to insurers (endorsement if needed)
Tip: claim disputes often start with “was it stock or WIP?”-get definitions clear in the schedule.
Key Extensions to Consider
- Debris removal and professional fees limits adequate
- Trace & access / “search and locate” extensions (policy dependent)
- Loss of metered water (policy dependent)
- Deterioration of stock (where relevant to cooling/controls)
- Additional increased cost of working for recovery acceleration
Not every extension is essential - the right selection depends on your process and how a shutdown realistically plays out.
2) Machinery Breakdown & Engineering Checklist (Where Downtime Starts)
Steel manufacturing losses commonly involve electrics, drives, hydraulics, cranes, cooling systems, compressors, and control systems. Machinery breakdown (engineering insurance) is designed to cover sudden and unforeseen breakdown of insured machinery/electrics-subject to definitions, maintenance requirements, and exclusions. This is where wordings vary significantly between insurers.
Breakdown Cover Essentials
- Schedule of insured plant adequate (key machines not unintentionally excluded)
- Electrical and mechanical breakdown both addressed (policy dependent)
- Control systems and electronics included where possible
- Overtime/expediting costs considered for urgent repairs
- Inspection regime documented (PPM, condition monitoring where used)
Tip: insurers respond positively to evidence of maintenance maturity and critical spares planning for long lead-time components.
Common Gaps to Check
- Wear and tear exclusion misunderstood (what is “sudden” versus “gradual”?)
- Defective design/material/workmanship clauses and resulting damage position
- Service/maintenance contracts align with insurer expectations
- Utilities dependency (power supply issues) understood and declared if needed
- Crane incidents and lifting exposures clarified (policy dependent)
Tip: “We have breakdown cover” is not enough-your claim outcome depends on definitions and what is actually scheduled/insured.
3) Business Interruption Checklist (The Most Expensive Part of the Loss)
In steel manufacturing, downtime cost frequently exceeds repair cost. Business interruption (BI) insurance is designed to cover loss of gross profit or revenue following insured damage, plus (often) increased cost of working to reduce the impact. The most common BI failure is a mismatch between indemnity period and real recovery time.
BI Structure & Values
- Gross profit / revenue basis correct and consistent with accounts
- Indemnity period realistic for worst-case recovery (lead time for critical equipment)
- Increased cost of working limit adequate (overtime, subcontracting, hire equipment)
- Claims preparation costs included (policy dependent)
- Seasonality considered (if shutdown during peak months)
Tip: if a transformer or critical drive has a 20–40 week lead time, a 12-month BI may be the minimum-not a luxury.
BI Dependencies & Extensions to Consider
- Supplier dependency (utilities, key suppliers, toll processors) – policy dependent
- Customer dependency (single major customers) – policy dependent
- Denial of access and public authority – policy dependent
- Utilities interruption – policy dependent
- Alternative premises and subcontracting plan documented
Tip: BI is where a programme becomes “real.” Align BI to how you would recover-not how you hope you would recover.
4) Liability, Contracts & Compliance Checklist
Steel manufacturers can face liability exposures from: on-site operations, contractors, visitors, product failure allegations, and environmental incidents. Customers may also impose minimum limits, specific endorsements, and territorial requirements. The checklist below helps ensure your liability programme is contract-ready and aligned to your real risk.
Core Liability Covers
- Employers’ liability in place (UK legal requirement for most employers)
- Public liability limit suitable for site footprint and visitor/contractor exposure
- Products liability aligned to sectors supplied and batch sizes
- Territories/jurisdiction correct (UK/EU/worldwide/USA-Canada if applicable)
- Hot works / contractors controls documented (permits, supervision, segregations)
Tip: if you export, “worldwide cover” can still have jurisdiction restrictions-check what you actually have.
Product & Contract Risk Checks
- Customer contracts reviewed for indemnities and uninsurable clauses
- Fitness for purpose and broad warranties understood
- Liquidated damages and contractual penalties recognised as typically uninsured
- Traceability / QA documented (batch records, certificates, calibration)
- Recall/trace & withdraw cover considered where supply chain severity is high (policy dependent)
Tip: the best defence against product allegations is strong documentation and fast containment-not “hoping insurance pays.”
Environmental & Waste Governance
- Pollution/environmental cover considered (especially where chemicals, oils, effluent or waste streams exist)
- Waste contractor due diligence documented (permits, audit trail, approved suppliers)
- Bunding/containment and drainage isolation in place
- Spill response plan and training evidence available
- Site history and any known contamination disclosed appropriately
Tip: environmental risk is often about process discipline and documentation-insurers like clear controls and a credible response plan.
Compliance Evidence Insurers Often Request
- Risk assessments and method statements for key hazards
- Maintenance logs and statutory inspection records
- Fire risk assessment and action tracking
- Quality system summary (traceability, inspection, calibration)
- Training records for critical roles (lifting, hot works, spill response)
Tip: the fastest route to stronger terms is making underwriting easy-clear documents, clear process, clear controls.
Steel Manufacturing Renewal Pack (What to Prepare)
If you want better renewal outcomes, prepare a simple “renewal pack” once a year. This reduces last-minute stress, improves insurer confidence, and helps avoid restrictive assumptions. Below is a practical pack that works well for steel underwriting.
Renewal Pack - Essentials
- Updated assets schedule and sums insured (buildings/plant/stock/WIP)
- List of critical machinery and single points of failure
- Summary of maintenance regime and any major upgrades
- Updated fire protection details and key improvements
- Claims summary: what happened, what you changed, and why recurrence is less likely
Renewal Pack - Strong Enhancers
- BI worksheet: gross profit, realistic recovery timeline, and recovery plan
- Security overview: CCTV, alarms, access control and yard/storage controls
- QA/traceability one-pager (especially for stainless/alloy/critical sectors)
- Waste and environmental governance summary (contractors, storage, spill response)
- Photos: key areas (electrical rooms, production lines, storage, waste areas, fire systems)
We used the checklist to rebuild our renewal submission. Once we clarified our critical machinery, BI recovery timeline and waste controls, insurers asked fewer questions and the renewal was smoother with fewer restrictions.
Finance Director – Steel ManufacturingTURN THIS CHECKLIST INTO A STRONGER POLICY
- Policy audit against common steel manufacturing gaps
- BI alignment with true downtime drivers and lead times
- Breakdown wording coordination and critical machinery scheduling
- Liability limits aligned to contracts and export territories
- Support preparing a renewal pack insurers actually want
FREQUENTLY ASKED QUESTIONS
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What insurance should every steel manufacturer have?
Most steel manufacturers need Property & Fire, Machinery Breakdown/Engineering, Business Interruption, Employers’ Liability and Public & Products Liability.
Depending on processes, you may also need environmental/pollution cover, goods in transit, and specialist extensions.
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What is the most common insurance gap for steel manufacturers?
Business interruption is a frequent gap-either the indemnity period is too short for real recovery time, or values/definitions don’t reflect how the business earns profit.
Another common gap is assuming breakdown cover automatically coordinates with BI without checking wording.
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How do I choose the right BI indemnity period?
Base it on the worst-case realistic recovery time for your critical machinery and infrastructure-consider diagnosis time, parts lead time, repair, recommissioning,
and the time needed to return to normal production volumes. For long lead-time equipment, 12 months can be too short.
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Do I need environmental/pollution cover?
If you handle oils, coolants, effluent, chemicals (including pickling/surface treatment), or significant waste streams such as slag and dust,
environmental exposure can be material. Many standard liability policies restrict pollution cover, so specialist environmental cover may be needed.
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What documents do insurers usually want at renewal?
Insurers often request updated sums insured, a critical machinery list, maintenance and inspection evidence, fire protection details, claims history and improvements,
BI figures/indemnity period justification, and (where relevant) QA/traceability and waste/environmental controls.
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Can Insure24 review our current policy against this checklist?
Yes. We can review your current schedule and key wordings, identify common gaps (especially BI and breakdown coordination), and recommend a structure that fits your operation,
contracts and downtime drivers.