Some insurance companies, for example IF Group (http://www.if-insurance.com/web/industrial/Pages/default.aspx), recently added a “Plastics in Construction” clause to their coverage requirements for industrial clients.  They are concerned about composite panels with combustible isolation materials such as polyurethane (PU), polystyrene (EPS) or polyisocyanureate (PIR), and indicate recent severe losses related to this.

In the case of IF Group, the new clause is still a recommendation, but it looks certain to become a requirement, since they are already referring to it as a “regulation.”  Other Carriers may or may not follow suit, but if they see risk or exposure on the issue, expect them to aggressively manage it with this or a similar tool.  Either way, none of us want plastics fires in the workplace, and those that have seen them especially understand that.

Cover yourself by taking the time to review your facility for materials of concern.  IF Group provides no guidance on what exactly you should be looking for, or how to find it, but here are their requirements under the new clause:

1) Administrative and organizational Regulations

a. Composite/sandwich panels shall be identified and clearly marked as to the combustibility of the insulation lining;

b. The Insured must institute an inspection program, which must include regular inspections of composite/sandwich panels for damage.  Where panels are damaged they must be replaced by a qualified contractor within 30 days.  Walls that are to be replaced should be non-combustible;

c. No repairs to be made to composite/sandwich panels that involve welding, grinding, cutting or other obvious ignition sources.

2) Human element regulations / issues

a. No external storage of combustible stock, packaging, pallets, waste or waste skips or bins within 15 feet of buildings.

3) Technical issues / installations

a. Exposed edges of external panels are closed off with steel capping and any penetrations of the panels are sealed with suitable fire resisting materials;

b. Hot flues, ducting and conduit wiring must be adequately protected within fire-resistant sleeves when passing through composite/sandwich panels;

c. Battery chargers must be well separated (fire wall 2 hours) from any composite/sandwich paneling or a safety distance of 5 meters to nearest composite panel and no combustible material is within 2 meters distance.

Dr. Scott Harris is the Senior Risk Manager for IESO, LLC.  His experience covers over 27 years of Environmental, Health and Safety Management in Federal and State government, consulting, general industry and University instruction.  He received his Ph.D. in Environmental Science, with a specialization in Disaster and Emergency Management, from Oklahoma State University, and holds degrees in Geology (B.S.) and Public Health (MPH) from Western Kentucky University.  Before joining IESO Scott was a Federal On-Scene Coordinator for EPA Region 6 and a member of their Emergency Readiness Team.  He held DOD “Top Secret” and DOE “Q” security clearances, and directed multi-agency emergency response, planning and recovery activities for chemical, biological and radiological releases and exercises within the five-state region.

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