Loss analysis Main category: Industrial processing Sub category: Industrial manufacturing


Jan 2009 to Dec 2017: During this period, large loss fires in the industrial processing industry accounted for 15.1% of all large loss fires


The numbers: There were 795 large loss fires in industrial processing premises, 130 of which occurred in manufacturing plants. Fires in manufacturing plants accounted for 2.5% of all large loss fires and 16.3% of fires in the industrial processing sector


Cause Processing


Manufacturing Time of day


Processing


Manufacturing Impedances


Processing Manufacturing


Accidental 60.1% 68.3%


00:00 - 06:00 06:00 - 12:00 17.2% 15.3%


12.0% 19.0%


Total 139


17


Access 52


6


Deliberate 12.7% 8.5%


12:00 -18:00 16.3% 12.3%


Unknown/unassigned 27.2% 23.2%


18:00 - 00:00 18.6% 17.2%


Acetylene Inadequate water 38


3


33 6


Unknown 36.2% 36.2%


Resources 16


2


The cost: Fires in industrial processing plants account for 38.8% of estimated financial losses in all large loss fires, with an average loss of £1,706,753 per fire. Fires in industrial manufacturing premises account for 15.0% of the estimated large losses in industrial processing, with an average cost of £1,569,354 per fire


Insurance component


Processing Manufacturing Business


Building 20.7%


24.9% Addressing the problems


The fact that over two thirds of major fires in industrial manufacturing plants occur as a result of accidental ignition suggests that much could be done in the way of fire safety management to reduce this problem. Experience suggests that while FRAs are undertaken with good intentions, the remedial actions are not always followed up promptly (and in some cases not at all). Regular audits between the reviews of the FRA to ensure improvement actions are being taken could be a useful approach to monitor progress. One of the most effective actions will be


improvements to housekeeping. Keeping escape routes free from obstructions, and mopping up spillages promptly, are two basic actions that are not always observed. Improvements to the compartmentation of a building are more difficult to identify and address, but can significantly reduce property losses in the event of an incident. Effective compartmentation between manufacturing areas, and those used for the storage of raw materials, components and finished products, can go a long way to mitigating fire damage in the event of fire. Managing hot works undertaken by company engineering staff or contractors is a problem that needs to be addressed by strict application of a hot work permit system, in compliance with RISCAuthority guidance RC7. Hot work that is part of a process needs to be carefully assessed, with suitable areas around the relevant processes being kept completely clear of combustible materials.


interruption 40.9%


39.5% Fires in industrial manufacturing cost on average £1,113m2


Contents Loss of rent 13.9%


0.8% 8.3% 0.5%


Machine and plant


18.1% 18.9%


Stock Other 4.3%


1.3% 6.7% 1.2% , whereas those in industrial processing as a whole cost £960m2


When reviewing the FRA, the hazard zones in the Dangerous Substances and Explosive Atmospheres Regulations 2002 (DSEAR) assessment (where undertaken) should also be reconsidered to ensure that they remain appropriate. Where flammable liquids are in use, reference should be made to RISCAuthority Recommendations RC55, 56 and 57. Where processes must operate unattended, an FRA should be carried out to ensure compliance with RISCAuthority Recommendations RC42. Many modern manufacturing processes can be carried out with few staff on hand and there are advantages in following RC42 guidance where a limited number of staff may be on hand in the immediate area of the process. When a new facility is at the design stage, serious


consideration should be given to installation of an automatic fire suppression system, such as water sprinklers. Sprinkler systems should be designed, installed, commissioned and maintained in accordance with the LPC Sprinkler Rules incorporating BS EN 12845 and by a company certificated by an independent, UKAS accredited third party certification body. Finally, an effective emergency plan should be in


place to ensure the resilience of the business – this is often forgotten. One way of approaching this is to complete the ROBUST business continuity and incident management planning software available free from https://robust.riscauthority.co.uk/


Adair Lewis is technical consultant at the Fire Protection Association


These statistics are based on information supplied by loss adjusters to the FPA on a voluntary basis and not all insurers conducting business in the UK contribute to this dataset. They represent only sums paid out where the total loss is in excess of £100k and are deficient of losses under £100K, deductibles, underinsurance, uninsured, self-insured and captively insured components, which may be significant. In a year, total losses captured typically account for 50% of the ABI declared annual fire loss figure – which is similarly deficient of the same components (except the £100k threshold).


www.frmjournal.com MAY 2018 53


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