What is EPS insurance?

EPS insurance refers to property insurance arranged for premises containing expanded polystyrene panels or insulation. It is generally a business package, commercial property or Industrial Special Risks (ISR) policy assessed against the building’s construction and business activities, rather than a standard standalone policy for the panels themselves.

Mercantile Insurance Brokers helps property owners and businesses present their construction details to insurers and compare available cover. We also review premises containing aluminium composite panels (ACP) and other insulated panel systems.

Why construction material matters

Insurers may distinguish between insulated panels based on core material, fire performance, location and extent of use. EPS, PIR and ACP are not treated identically, and the actual panel composition should be confirmed wherever possible.

EPS, PIR and ACP: different materials, different insurance assessments

Expanded polystyrene (EPS) panels

EPS is a plastic foam used as the insulating core in some metal-faced sandwich panels. It can be found in cool rooms, freezers, factory partitions and ceilings. Its combustibility can influence an insurer’s assessment of fire loss potential. A metal facing does not, by itself, establish that the panel core is non-combustible.

Polyisocyanurate (PIR) and other insulated panels

PIR, polyurethane and mineral wool panels should be identified separately from EPS. Panel systems differ in composition and fire performance. Insurers may request the exact product specifications, test reports and installation details rather than rely on a general description such as “insulated sandwich panel”.

Aluminium composite panels (ACP)

ACP commonly comprises aluminium outer layers with a core that may contain polyethylene or a mineral-filled blend. Core composition, the extent of cladding and its location can affect underwriting. ACP façade cladding and EPS cool-room panels should be described separately in an insurance submission.

Businesses and properties to consider

Panel construction can be relevant to a range of commercial operations, including:

• Food and beverage manufacturing and processing
• Cold stores, freezers and refrigerated distribution centres
• Food wholesalers and warehouses
• Pharmaceutical storage and controlled-environment facilities
• Factories with insulated partitions, ceilings or production areas
• Commercial properties with composite façade cladding

Each location needs its own assessment. A small cool-room enclosure within a larger building may present a different insurance profile from a facility with extensive combustible panelling. These examples do not confirm insurer acceptance.

Insurance covers and policy terms to consider

Buildings, contents, machinery and stock

Consider which assets and entities need to be insured, declared values and the proposed physical damage cover. Owners and tenants may have different assets and interests to insure. Panel construction can affect the terms offered for the wider premises, including excesses, exclusions and insurer conditions.

Business interruption and loss of rent

Following insured damage, a business may need time to rebuild, replace refrigeration or production equipment and resume normal trading. Consider the insured financial basis, indemnity period and relevant limits. For property owners, loss of rent may also need consideration. Cover depends on the policy’s insured events and extensions.

Refrigeration breakdown and stock deterioration

Cover for fire damage should not be assumed to include every refrigeration failure or temperature-related stock loss. Consider whether machinery breakdown and stock deterioration cover are required, together with their triggers, limits and excesses.

Fire protection conditions and survey requirements

Insurers may require a survey, supporting reports or specific conditions relating to fire protection and the management of panel exposures. We help explain the insurance requirements and present relevant information to the underwriter. Insurance acceptance does not establish the technical performance or building compliance of a panel system.

Information we commonly collect

• Panel type and percentage of building construction
• Location of panels within the premises
• Sprinkler and fire-detection systems
• Compartmentation and fire separation
• Hot-work controls and housekeeping
• Business interruption exposure
• Recent risk surveys, valuations and claims history

Market approach

Higher-hazard construction does not automatically make a risk uninsurable, but it often requires better technical information and a more targeted insurer approach. Terms remain subject to insurer appetite and policy conditions.

We prepare a submission describing the premises, panel materials, activities, asset values and loss history. Where information is incomplete, we identify what the insurer needs to assess the risk. We then explain material differences between quotations, including cover restrictions and any requirements for binding or continuing cover.

Preparing for an EPS or ACP insurance quotation

Useful documents include construction drawings, panel product specifications, existing survey reports, photographs, fire-protection records and your current insurance schedule. Identify whether panels are used internally, externally or in both locations, and disclose any uncertainty about their composition.

Start the review early where renewal is approaching, the current insurer has restricted terms or the premises have changed. Tell us about new cool rooms, extensions, altered uses and changes in stock values so you should consider whether the policy needs updating.

EPS and ACP insurance frequently asked questions

Can a building containing EPS panels be insured?

Some insurers consider selected panel exposures, subject to their underwriting criteria. Availability and terms depend on the construction, occupancy, extent of panels, protection, values and claims history. Cover cannot be guaranteed before assessment.

Are all insulated sandwich panels treated the same?

No. The core material and specific panel system matter. Provide product information rather than assume that EPS, PIR and mineral wool will receive the same terms.

Will sprinklers guarantee acceptance?

No. Fire protection is one part of the assessment. Insurers also consider the panel system, business activities and overall exposure, and may request further technical information.

Does EPS insurance pay for replacing panels before a loss?

A property policy should not be assumed to fund a planned upgrade or replacement. Costs following insured damage are assessed under the policy wording, including any relevant reinstatement provisions and limits.

What if the panel type is unknown?

Tell us what is known and provide available records. We can ask the insurer what additional evidence it requires. An insurance quotation should not rely on an unsupported assumption about the core material.

Related insurance information

• Manufacturing insurance
• Food and beverage manufacturing and wholesale insurance
• Commercial property and business interruption insurance

Request an EPS and ACP insurance review

Speak with Mercantile Insurance Brokers about cover for your premises and business. Provide the property address, construction details, panel information, current schedule and claims history to help us assess the available options.

Request an EPS and ACP insurance review →

General insurance information only, prepared without taking account of your objectives, financial situation or needs. Cover is subject to insurer acceptance and policy terms, conditions, exclusions, limits and excesses. Read the relevant policy wording and any applicable Product Disclosure Statement before deciding.