Risk management strategies for high fire hazard risks
For businesses operating in high-hazard industries, navigating the complexities of high-fire-hazard risks and finding the right balance between construction affordability, risk mitigation and insurability leads to compromise, particularly when considering risk at existing facilities.
These decisions come into greater focus in industries where there is a high fire risk. One persistent and often understated danger lurks within the walls of countless structures: EPS (expanded polystyrene) panelling.
EPS panelling is widely used in construction due to its excellent insulation properties and cost-effectiveness. However, this material poses significant fire risk which needs to be addressed.
This article covers the hazards associated with EPS panelling, delves into examples of significant fires and alternative materials to EPS panelling and provides practical strategies for mitigating these risks.
Understanding the fire risk
EPS panelling or Styrofoam, is a lightweight, closed-cell foam plastic widely used in construction and packaging. While offering insulation and aesthetic benefits, EPS poses a significant fire risk due to its inherent flammability.
When exposed to fire, it can ignite easily and burn rapidly, releasing toxic gases and contributing to the fire's spread. The material’s composition, primarily made of polystyrene, allows it to melt and drip, causing fire to spread even faster. This rapid-fire spread can severely compromise building integrity and safety, making timely fire detection and suppression crucial.
EPS used in panelling exacerbates the problem by sandwiching the foam core's highly combustible fuel between sheets of aluminium, preventing access of water to extinguish the flames.
Burning EPS also releases harmful gases like styrene and carbon monoxide, posing a significant inhalation hazard to firefighters and occupants.
Examples of fires caused by EPS panelling
Unfortunately industry and insurers do not have to cast a wide net to find examples of EPS panelling fires.
- Pendle Hill, western Sydney, 2021: A significant fire at a cold storage facility.
Over 100 firefighters from Fire and Rescue NSW were called to manage the blaze, after being alerted by an automatic fire alarm at 6:40 am. Fighting the fire proved challenging due to the building's construction with insulated sandwich panels, which complicated access and increased the danger for the firefighting teams. Fortunately, all building occupants were accounted for, and there were no injuries reported. The firefighting efforts continued throughout the day to control the situation. - Sydney apartment fire, 2018: A balcony fire in a residential building rapidly spread to adjacent apartments due to the presence of EPS balcony panels.
- Grenfell Tower fire, London, 2017: The tragic Grenfell Tower fire, which resulted in 72 fatalities, was exacerbated by combustible insulation materials, including EPS. This incident highlighted the catastrophic potential of using such materials in high-rise buildings.
- Food Processing Plant Fire, Netherlands, 2017: A major fire in a food processing plant, exacerbated by EPS panelling, caused significant financial loss and operational disruption. The rapid spread of the fire due to the panelling highlighted the critical need for alternative insulation materials in such high-risk environments.
- Lacrosse Building fire, Melbourne Docklands, 2014: A cigarette left on a balcony ignited EPS panelling, causing a fire that spread across 13 floors in less than 15 minutes. Fortunately, there were no fatalities, but the building sustained significant damage, leading to substantial insurance claims and legal repercussions.
- Cold Storage Warehouse Fire, New Zealand, 2008: A fire at a cold storage facility in New Zealand demonstrated the dangers of EPS in industrial settings. The insulation panels rapidly spread the fire, leading to the complete destruction of the facility. The incident underlined the need for fire-resistant materials in environments with high fire loads.
Managing the risk
To mitigate the fire risks associated with EPS panelling, insurance advisers should advocate that building owners consider the following strategies:
Replacement materials
Consider the use of safer alternatives to EPS which offer similar insulation benefits but with significantly lower fire risks. Although these materials may be more expensive, their use can reduce the potential for and severity of fire. Less combustible materials are preferred by insurers, and when coupled with effective risk management, often manifest in increased insurer capacity and reduced premiums. Fortunately, a range of less flammable options exists for construction and insulation, offering fire-resistant alternatives to EPS. Each alternative comes with its own strengths and weaknesses and should be considered on their suitability to your project.
Polyisocyanurate (PIR) Foam
PolyISO insulation is a rigid, closed-cell, continuous foam board insulation manufactured from liquid polyisocyanurate foam sandwiched between fibreglass-reinforced facers. These facers are most commonly made of aluminium foil, however, they can also be formed from organic felt or inorganic fibreglass mats.
Strengths: good fire resistance, high thermal insulation properties, stable at higher temperatures.
Weaknesses: more expensive than EPS, can degrade over time if not properly protected from moisture.
Mineral wool
Made from volcanic rock and recycled materials, mineral wool offers superb fire resistance and soundproofing properties.
Strengths: highly fire-resistant, excellent thermal and acoustic insulation properties, non-combustible.
Weaknesses: heavier than EPS, more expensive and may require additional structural support. Mineral wool is generally less dense than rock wool, which means that it may not provide as much insulation value per unit of thickness.
Rock wool
Similar to mineral wool, rock wool is commonly used as an external wall insulation material.
Strengths: excellent fire resistance and insulation and is often preferred for high-temperature applications.
Weaknesses: high construction difficulty and high-water absorption rate.
Phenolic foam
Phenolic insulation is a rigid closed-cell structure, commonly used in construction projects such as ductwork, walls, roofing and flooring. Due to its design and thermal properties, phenolic insulation is a commonly used insulation solution.
Strengths: excellent fire resistance, lower smoke production, good thermal performance.
Weaknesses: higher cost, more brittle than EPS, may require protective facings for durability. Over time, there have been concerns about the potential for phenolic foam boards to shrink, especially when exposed to moisture that can result in gaps and reduced insulating performance.
Beyond materials: proactive risk management strategies
Brokers are in a unique position to assist clients improve their risk management and insurability, by creating awareness of the risks, the focus on risk management and the impact of the quality of the risk on insurers’ appetite, premiums and its acceptance.
Sam Coulson, Director of Chase Complex Risks, states "beyond replacing EPS with fire-resistant materials, property owners need to have a comprehensive risk management plan." This plan should contemplate:
Cultivating a culture of preparedness: Encourage clients to invest in robust fire prevention and protection systems. Regular electrical equipment maintenance, comprehensive sprinkler systems, and readily available fire extinguishers form the bedrock of fire safety. Don't underestimate the power of fire drills and employee training – knowledge is often the shield against the flames.
Minimising Fuel Loads: Advocate for minimising storage of combustible materials around facilities. Implement appropriate procedures for flammable liquids and chemicals, ensuring adequate distance from potential ignition sources. Remember, a leaner fuel environment translates to a less ferocious fire.
Prioritising early detection: Go beyond basic smoke alarms and advocate for advanced fire detection systems. Early warning is paramount for rapid response and effective damage control. Don't leave fire detection to chance – technology is the most reliable ally.
Electrical thermal detection: Install thermal detection systems to identify overheating electrical components and prevent fires before they start. These systems can detect abnormal temperature increases in wiring and equipment, providing early warning signs of potential fire hazards. In the absence of automatic detection, the implementation of regular (annual) thermal scans of electrical wiring can identify potential overheating issues and prevent electrical fires before they start.
Constructing robust firewalls: For EPS-heavy buildings, consider compartmentalisation strategies to limit fire spread. Fire-resistant walls and doors can create smaller, more manageable fire zones, buying precious time for evacuation and firefighting. Separation or isolation of hazards associated with forklift battery charging facilities is often a consideration in reducing the potential cause of fire.
Fire protection systems: Implement comprehensive fire protection systems in buildings with EPS panelling. This includes:
- Automatic Sprinklers: Essential for controlling fires before they spread.
- Fire Alarms: Early detection systems to alert occupants and emergency services.
- Fire Extinguishers: Properly placed and maintained extinguishers for immediate fire response.
Hot work permit systems: Establish strict hot work permit systems for activities such as welding, cutting, or grinding near EPS panelling. This includes:
- Permits and documentation: Requiring detailed permits for hot work, ensuring all safety protocols are followed.
- Fire watches: Assigning personnel to monitor hot work activities and spot any signs of fire.
- Protective measures: Using fire-resistant barriers and ensuring proper ventilation to minimise fire risks.
Good housekeeping: Maintain rigorous housekeeping practices to reduce fire hazards associated with EPS panelling. This includes:
Regular inspections: Conducting routine inspections to identify and rectify potential fire risks.
Repairs: Immediate, prioritised repair of damage exposing the foam core.
Proper storage: Storing flammable materials away from EPS panelling and ensuring that no combustible debris accumulates in the vicinity.
Cleaning and maintenance: Regularly cleaning the building and maintaining equipment to prevent the build-up of combustible dust and debris.
Risk surveys: Invest in a regular and up to date survey which identifies the potential risks at key locations, measures taken to mitigate these risks.
Risk assessment and education: Conducting thorough risk assessments for clients with EPS installations and providing educational resources on fire safety empowers informed decision-making.
Conclusion
EPS panelling, while beneficial for insulation
, poses significant fire risks that require proactive management.
In many instances, clients are unable to remove the risk, nor carry the significant capital investment in more effective fire protection systems. However, changes in operational practices and investment in risk mitigation measures can have a big impact to the fire risk and insurance outcome.
Through proper advice on risk mitigation, advance planning and careful structuring of insurance, brokers can assist their clients by significantly reducing the financial impact of insurance, both pre and post loss.
Chase Complex Risks can guide you and your clients through challenging placements by offering a comprehensive insurance solution and services.