Interview with Gothaer Allgemeine Versicherung AG
Insurance cover for compact storage systems
We from WAGNER spoke with Christopher Siebert, Head of Risk Engineering - Fire Protection at Gothaer Allgemeine Versicherung AG, about fire protection, risks and protection concepts for compact storage systems. In the interview, he explains how insurance companies assess the risks in order to be able to offer adequate insurance cover in the event of a claim.
Fully automated, extremely compact systems have become an indispensable part of modern warehouse logistics. They guarantee 24/7 availability, uninterrupted delivery capability and optimal use of space thanks to stackable containers. What are the special features / challenges of these so-called compact storage systems from an insurance perspective?
From an insurance perspective, there are completely new challenges compared to other systems, which are due in particular to the highly compacted storage of the compact storage systems. The building code requirements for a storage facility are formulated in a fire protection concept and are a prerequisite for the building permit. The protection goals agreed upon there include the rescue of humans and animals as well as the protection of the environment. As an insurance company, we step in when further risks need to be covered. For example, to insure the stored material assets against loss or damage, up to the coverage in case of a business interruption. And at this point, the consideration of a compact storage system becomes challenging, because in addition to the size, we are interested in other criteria: what goods are stored in the warehouse and what values, keyword: value concentration, do we have in the containers at the end of the day, i.e. what material value and, if applicable, business interruption damage do we have to insure there as an insurer. In this context, we evaluate the existing or planned fire protection. There are currently very different protection concepts here.
You mention the topic of fire protection and the different protection concepts. Which procedures do you encounter most frequently in warehouse logistics and how do you evaluate the respective approaches and solutions for a compact storage systems from an insurance perspective?
The most common are certainly the water-based extinguishing methods such as sprinkler systems, often in combination with a fire alarm system. Or systems that work on the principle of oxygen reduction or gas extinguishing. So there is no one solution, and as an insurer we cannot say which approach is the better one without a concrete project reference. At the moment, we are looking very closely at all solutions with regard to the compact storage system. Due to the extremely compact storage resulting from the tight arrangement of the containers, the decisive question for the insurance company in this case is: Can a fire in such a warehouse be extinguished quickly and effectively at all, so that a rapid spread of the fire can be prevented and thus greater damage to the stored goods is prevented? Likewise, we ask ourselves the question of consequential damage? That is, how great is the risk that large parts of the goods will be destroyed in the event of fire? Or, thinking further, how great is the risk of business interruption or even complete loss of business? On this basis, we as insurers then recommend or even prescribe a holistic protection concept. Particularly with regard to consequential damage, fire prevention systems that work on the principle of oxygen reduction are an interesting approach from our point of view - especially in compact storage system. We are currently examining this approach very closely alongside all other solutions.
What do policyholders need to bear in mind? Do you have any recommendations for policyholders, e.g. what to consider already in the planning/construction phase?
We generally recommend dealing with the issue of fire protection at an early stage and thinking about the most suitable solution as early as possible. In this context, from our point of view, the specific risks must be analyzed and the individual protection goals defined right at the beginning of each planning phase. This is of course easier in the case of a new construction project than in the case of subsequent requirements in an existing plant. As an insurance company, we always provide our customers with very comprehensive advice in all cases.
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Automated compact storage systems require innovative fire protection solutions. Active fire prevention protects operators from the consequences of a fire. This ensures delivery and operational capability at all times. We look forward to your task for innovative fire protection and support you in the implementation of your protection goals.