EPS vs PIR: fire & business interruption in high-hazard commercial risks.
Written by Kelsey Craver - Regional Development Underwriter - South Island
How does The Barn address fire and business interruption exposures in high-hazard commercial risks?
As the New Zealand insurance market continues to tighten around combustible panel risks, particularly in the Food & Beverage (F&B) industry, The Barn Underwriting Agency is emerging as a key player with the expertise and appetite to navigate this complex and evolving space.
With many mainstream insurers retreating from risks involving EPS (expanded polystyrene) panels, The Barn has taken a practical, risk-informed approach; differentiating itself by understanding the differences of construction, operations, and fire mitigation strategies in high-exposure environments.
Across New Zealand, the F&B industry remains heavily reliant on insulated panel construction for cold storage, food processing, and distribution. While EPS panels are cost-effective and thermally efficient, their combustible core and hidden fire spread potential make them a growing concern for insurers, particularly in environments with ignition sources, such as deep fryers, electrical switchboards, or refrigeration plant rooms. By comparison, PIR (polyisocyanurate) panels, which offer greater fire resistance, are viewed more favourably by the market. The Barn’s underwriting framework clearly distinguishes between panel types.
What sets The Barn apart is its willingness to engage with brokers and clients to assess risk on a case-by-case basis.
Rather than relying on rigid exclusions or blanket assumptions, The Barn leverages specialist knowledge and practical risk engineering to tailor coverage for complex assets, especially in regional or rural New Zealand, where legacy EPS construction remains common in meat, seafood, produce, and dairy facilities.
Key underwriting strengths include:
• Granular risk assessment of panel types, including support for independent testing and validation;
• Business continuity lens when evaluating Business Interruption exposure, including operational redundancies, alternative supply chains, and realistic indemnity periods;
• Support for risk improvement plans, such as EPS separation strategies, early detection systems, and progressive panel replacement;
• Partnership-focused underwriting, working closely with brokers to preserve coverage where possible, rather than decline outright.
While capacity remains constrained in the broader market, The Barn continues to write Material Damage and Business Interruption cover for F&B risks others may walk away from, provided there is transparency, commitment to risk management, and evidence of appropriate controls.
GET IN TOUCH
What to know more about The Barn’s specialised products? Get in touch with our team to find out more.
p. 0800 114 982