Composite Panels: a Guide to What They Are, Why They Worry Insurers, and What Businesses Can Do
Composite panels, sometimes called sandwich panels or composite insulated panels, are widely used in Great Britain and Northern Ireland in commercial buildings for walls, roofs, ceilings, and cold‑store environments. Their popularity comes from being lightweight, cost‑effective, hygienic, and highly insulating. But behind these advantages lies a serious and well‑documented fire risk that has increasingly shaped insurer attitudes and underwriting decisions.
Types of Composite Panels
Composite panels consist of a rigid insulation core sandwiched between metal or plastic facings such as steel, aluminium, PVC, or fibreglass. The core material determines the risk profile. Common types include polystyrene, polyurethane, and mineral fibre.
These panels have been used for over 40 years across industries such as food processing, warehousing, hospitality, pharmaceuticals, and logistics.
Why Composite Panels Pose a Risk to Insurers
From an insurance perspective, composite panels represent a significant fire exposure. When panels with combustible cores become involved in a fire, several issues arise:
- Rapid fire spread
- Difficult and dangerous firefighting
- Structural collapse risks
- Major past losses influencing insurer appetite
- Events such as cold‑store fires involving EPS cores, the Grenfell Tower tragedy, and other well‑documented losses have significantly reduced insurer willingness to write risks involving combustible panels. As a result, insurers increasingly demand detailed information, apply higher premiums, restrict cover, or decline risks involving non‑approved composite panels.
What Businesses Can Do
- Identify the panel types used. Establish core materials using drawings, manufacturer documentation, or core sampling. Some approved panels carry LPCB‑identifiable markings
- Replace combustible panels where possible. The most effective mitigation is replacing combustible cores with non‑combustible mineral fibre alternatives
- Strengthen fire risk management. Implement structured fire‑risk programmes including compartmentation, equipment precautions, and prevention of ignition sources near panels
- Maintain clear separation from heat‑producing processes. Insurers pay close attention to panel proximity to cooking, hot‑works, plant rooms, and electrical equipment—common sources of ignition
- Full disclosure, risk surveys, and evidence of mitigation can significantly improve insurer appetite and pricing. Speak to the Dickson team to find out more about how you can protect your business
