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INSURANCE BUILT FOR CONTINUOUS PROCESS STEEL RISK
Rolling Mill & Strip Processing Insurance Explained
Steel rolling mills and strip processing operations are high-value, high-energy environments. Production depends on tightly controlled mechanical systems (stands, rolls, drives, gearboxes, hydraulics, cooling), electrical infrastructure (MCCs, transformers, variable speed drives), and process equipment (furnaces, pickling lines, tension levellers, slitters, recoilers, straighteners, finishing lines and inspection systems).
When something fails, the consequences can be severe: catastrophic damage to plant, fires from hydraulic oil, roll failures, strip breaks causing downstream damage, quality rejection, contractual penalties, and extended downtime while specialist parts are sourced. Standard “factory insurance” often doesn’t reflect the true exposures of a continuous process steel plant.
Insure24 arranges specialist rolling mill and strip processing insurance packages that bring together the critical covers - property, machinery breakdown, business interruption, liability, stock, and additional protections for modern automation and control systems - to help keep your operation resilient.
Who Needs Steel Rolling Mill & Strip Processing Insurance?
This cover is designed for steel and metal processing businesses operating heavy rolling and strip lines - including hot rolling, cold rolling and downstream finishing. Typical operations we insure include:
- Hot rolling mills (roughing/finishing stands, run-out tables, cooling beds)
- Cold rolling mills (tandem mills, reversing mills, skin pass mills)
- Strip processing and finishing lines (annealing, temper, levelling, straightening)
- Pickling lines and acid regeneration / effluent treatment (where applicable)
- Slitting lines, cut-to-length lines, recoiling and coil handling operations
- Coil storage yards, cranes, lifting equipment and internal logistics
- Service centres supplying coil, sheet and strip to automotive, construction and general engineering
Core Covers for Rolling Mills & Strip Processing Plants
Rolling mill risks rarely sit neatly in one policy section. The best outcomes come from a joined-up insurance programme that matches how a mill operates: high-value assets, continuous throughput, tight tolerances, and major loss potential from a single mechanical or electrical event.
Property & Plant (Material Damage)
- Buildings and structures (including high-bay areas and processing bays)
- Fixed plant: rolling stands, drives, gearboxes, hydraulics, cooling systems
- Electrical infrastructure: transformers, switchgear, MCCs, cabling
- Auxiliaries: compressors, pumps, dust extraction, water treatment
- Fire, flood, storm, theft and accidental damage (subject to terms)
Machinery Breakdown
- Sudden and unforeseen mechanical/electrical breakdown (wording dependent)
- Drive failures, gearbox damage, bearing failures, hydraulic system failures
- Motor burnout, electrical arcing, control panel failure (subject to scope)
- Cover can be structured for high-value, specialist equipment
- Optional engineering inspection / statutory inspection for lifting plant (where applicable)
Business Interruption (Loss of Gross Profit / Revenue)
- Protection for lost gross profit following insured damage
- Indemnity periods aligned to realistic repair lead times (often 12–24 months+)
- Increased cost of working (overtime, alternative processing, subcontracting)
- Supplier/customer dependency options (contingent BI) where required
- Penalties and contract exposures considered when structuring limits
Liability (Public, Products & Employers’ Liability)
- Public liability for third-party injury or property damage
- Products liability for supplied strip/coil/sheet (injury/damage claims)
- Employers’ liability for workforce injury/illness exposures
- Contractual liability considerations for key customers
- Claims handling support for technical, high-value losses
Key Rolling Mill & Strip Processing Risks Insurers Focus On
Steel operations present distinct “severity” exposures. Underwriters typically look beyond generic “manufacturing” questions and focus on how losses can cascade across the line.
Fire & Explosion Exposures
- Hydraulic oil mist and leaks near ignition sources
- Furnaces, burners and high-temperature zones (hot rolling / annealing)
- Electrical faults and arc flash risk in high-load environments
- Dust or particulate risks (depending on processes)
- Hot work controls, permits, fire watch and housekeeping standards
Mechanical Failure & Line Damage
- Roll failures, chocks and bearing damage
- Strip breaks causing downstream equipment damage
- Drive, gearbox and coupling failures under high torque loads
- Hydraulic system contamination and pressure spikes
- Crane and coil handling incidents impacting stock and plant
Quality, Rejection & Downstream Claims
- Thickness/tolerance deviation, surface defects and coil damage
- Customer rejection, chargebacks and rework pressure
- Contamination from pickling, oils, or processing residues
- Traceability requirements and documentation expectations
- Clarifying what insurance will and will not cover (important!)
Utilities & Critical Dependencies
- Power supply stability and backup planning
- Cooling water systems and treatment reliability
- Compressed air and hydraulics (single points of failure)
- Spare parts strategy and OEM lead times
- Maintenance approach (preventive, predictive, condition monitoring)
What Information Insurers Need for a Rolling Mill Quote
Accurate risk presentation speeds up quoting and improves insurer confidence. Rolling mills can be complex - a clear summary of plant, values and controls makes a measurable difference to terms.
Operations & Production
- Process description (hot/cold rolling, pickling, slitting, annealing, finishing)
- Annual throughput, turnover, product types and customer sectors
- Largest contracts and any critical customer dependencies
- Shift patterns and continuous operation details
- Quality systems and traceability approach
Assets, Values & Resilience
- Buildings reinstatement values and construction details
- Plant and machinery valuations (by major line/area if possible)
- Business interruption sums insured and target indemnity period
- Maintenance, condition monitoring, spare parts and OEM support
- Fire protection (detection/suppression), hydrants and emergency planning
Why Choose Insure24 for Rolling Mill Insurance?
Rolling mills and strip lines require specialist underwriting and clear technical presentation. We focus on ensuring your insurer understands the line, the controls, and the true business interruption exposure - not just the headline turnover.
- Access to markets that understand heavy industry and continuous process risk
- Support structuring BI sums insured and realistic indemnity periods
- Machinery breakdown and property programmes aligned to high-value plant
- Clear review of exclusions, conditions and warranty requirements
- Claims support and insurer liaison when incidents occur
FREQUENTLY ASKED QUESTIONS
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What insurance does a steel rolling mill typically need?
Most rolling mills need property (material damage), machinery breakdown, business interruption, employers’ liability, public/products liability, and cover for stock (coils/strip). The right structure depends on your plant, processes, and contract exposures.
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Does machinery breakdown cover roll failures and drive damage?
Machinery breakdown can cover sudden and unforeseen mechanical or electrical breakdown, which may include certain failures of drives, gearboxes, bearings and related equipment. The exact scope depends on the wording, declared plant, maintenance standards and any applicable exclusions.
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How do insurers calculate business interruption for rolling mills?
Insurers typically look at gross profit or revenue, the likely maximum loss scenario, repair lead times for specialist parts, and whether alternative processing routes exist. Setting an appropriate indemnity period is crucial for mills with long OEM lead times.
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Is stock (coils/strip) covered if it is damaged during processing?
Stock can be covered under property/stock sections depending on how it is defined (raw materials, WIP, finished goods) and the insured perils. “Quality” or “rejection” issues are often not insured unless specifically arranged.
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What are common exclusions for rolling mill insurance?
Common exclusions can include wear and tear, gradual deterioration, certain defect/maintenance-related issues, and quality/rejection costs. Policies may also include conditions around fire protection, hot works, housekeeping, and maintenance standards.
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Can Insure24 arrange a combined package for property, breakdown and liability?
Yes. We can arrange combined or modular programmes depending on your risk profile and insurer appetite, bringing together property, machinery breakdown, business interruption and liability to reduce gaps and ensure consistent terms.