Recycling and Waste Management Facilities – Risk and Loss Prevention

Risk drivers

Recycling and waste management facilities process a highly heterogeneous material mix whose actual composition, unlike that of conventional merchandise warehouses, can only be controlled to a limited extent. Incorrectly discarded lithium-ion batteries and rechargeable cells in collection and sorting plants have become the most frequent cause of fire in the sector in recent years, as mechanical damage during sorting and shredding can trigger thermal runaway. Large open-air stockpiles of secondary raw materials also favour rapid fire spread over long distances.

Protection measures

Industry-typical measures include early battery and metal detection ahead of shredding and sorting equipment, automatic monitor extinguishing systems for indoor and outdoor storage areas, limited pile height and size for material stockpiles to contain fires, and clearly defined separation distances between storage sections. Reliable fire detection with a short response time is particularly important given the rapid fire development in loose bulk material.

Insurance relevance

The rise in battery-related fires has significantly increased loss frequency in the recycling and waste management sector in recent years, with corresponding effects on pricing and cover conditions. Property insurers reviewing the risk increasingly require evidence of functioning battery detection and a documented concept for limiting accumulation losses across outdoor storage areas.