The recent Victorian bushfires highlighted how vulnerable Australia’s rural industries and infrastructure can be. While asset losses in wine growing areas were not as bad as many feared at the height of the blazes, the damage bill was still significant.
In this context, the Longfellows Group, an insurance brokerage and WFA Network Partner, has raised an emerging issue in relation to a building material commonly used in the wine industry – EPS (Expanded Polystyrene) Panelling.
Significant recent fire losses involving buildings with large amounts of EPS have caused premiums (and excesses) to skyrocket. In fact, many insurers have chosen to price themselves out of the market or declined to insure EPS risks.
EPS panelling, like other sandwich panels, comprises a core material bonded to two outer facings, usually steel. EPS is popular in many sectors, including the wine industry, because it is the most cost effective to buy and install.
However, EPS panels are considered hazardous by many insurers because:
· EPS is flammable at a relatively low ignition temperature, and once this point is reached it is highly combustible and the fire spreads quickly
· toxic smoke and gas and rapid reduction in structural integrity make fire fighting dangerous
· as fire crews often must focus their efforts on preventing the fire spreading, once a fire starts in an EPS risk a total loss (rather then just partial damage) is likely.
The message from Longfellows is that when building sandwich panels it is worth considering all options as the savings on cheaper EPS may be outweighed by higher insurance costs.
The most common alternatives to EPS are PIR (Polyisocyanurate) and mineral wool (synthetic fibre). PIR panels cost around twice as much as EPS panels but have a higher ignition temperature and produce an insulating char when burned, rather than melting. Mineral wool cores are non combustible but resist water vapour, making them unsuitable in some situations. A number of phenolic/EPS hybrid cores now entering the market also provide lower combustibility then pure EPS and good insulating properties.
When making choices, Longfellows also warns to be aware of ambiguous terms such as “Fire Rated” and “Insurer Approved”; the rating may be poor and the approval may only come with a horrendous premium rate!
Risk management for EPS
If your existing buildings contain EPS panels, there are a number of ways to reduce fire risk:
- carry out visual inspections – any exposed core (where a fire can enter the panel) must be sufficiently capped and sealed
- keep electrical and heat-producing equipment or appliances at least 10cm from panels distance from panels
- take great care when penetrating cabling though panelling
- maintain facings and joints to prevent exposure of the core
- ensure strict control and supervision of any hot work (welding, grinding, thermal or oxygen cutting or heating)
- isolate bulk storage of empty pallets away from panelling
- conduct annual electrical examination and thermal imaging to detect any “hot spots” on wiring.
