Anne Bruce
Manufacturers and retailers are mustering for a battle with insurance companies after hikes in this year's premiums of up to 1,300%.
The British Retail Consortium is to lead retailers into battle, starting with a nationwide survey later this year, "a massive project, to quantify the evidence", said BRC property policy executive Andrew Smith.
He said: "Retailers' premiums are rising dramatically, typically 100% on last year.
"In city centre locations, premiums have gone through the roof since insurance companies reassessed risks in the wake of September 11."
On the manufacturing side, the UK Association of Frozen Food Producers, the Chilled Food Association, the Cold Storage and Distribution Federation, and the Ice Cream Federation have joined forces to develop guidance for members following recent rises in premiums of 500% to 1,300%.
The group is to confront insurers later this year. It says insurance is becoming unaffordable because of a new insurance hardline on composite panels  polystyrene filled panels which are widely used in factories  because they are considered to be a fire risk.
Paul Weeks, md of chilled food manufacturer Wicken Fen Wholesome Foods: "Our insurance has gone up 500% in the last year with huge excesses. It's the same everywhere. Our neighbour's excess is £7m."
Jeremy King, general manager of Redwood Wholefood Company, said: "We are all under the cosh. We have seen a 400% to 500% year-on-year rise in insurance since September 11. It means you might have to rebuild factories to remove composite panels."
Leading ethnic food manufacturer Noon Products confirmed it planned to rebuild two factories to replace all composite panels.
UKAFFP chairman Geoff Molloy said: "Composite panelling is very prevalent in the food industry. We want insurance companies to assess risk realistically, by how the panels are managed, rather than just jacking up premiums."
The Food and Drink Federation said that it was currently deciding how to tackle the insurance premium hike issue.
{{NEWS }}
Manufacturers and retailers are mustering for a battle with insurance companies after hikes in this year's premiums of up to 1,300%.
The British Retail Consortium is to lead retailers into battle, starting with a nationwide survey later this year, "a massive project, to quantify the evidence", said BRC property policy executive Andrew Smith.
He said: "Retailers' premiums are rising dramatically, typically 100% on last year.
"In city centre locations, premiums have gone through the roof since insurance companies reassessed risks in the wake of September 11."
On the manufacturing side, the UK Association of Frozen Food Producers, the Chilled Food Association, the Cold Storage and Distribution Federation, and the Ice Cream Federation have joined forces to develop guidance for members following recent rises in premiums of 500% to 1,300%.
The group is to confront insurers later this year. It says insurance is becoming unaffordable because of a new insurance hardline on composite panels  polystyrene filled panels which are widely used in factories  because they are considered to be a fire risk.
Paul Weeks, md of chilled food manufacturer Wicken Fen Wholesome Foods: "Our insurance has gone up 500% in the last year with huge excesses. It's the same everywhere. Our neighbour's excess is £7m."
Jeremy King, general manager of Redwood Wholefood Company, said: "We are all under the cosh. We have seen a 400% to 500% year-on-year rise in insurance since September 11. It means you might have to rebuild factories to remove composite panels."
Leading ethnic food manufacturer Noon Products confirmed it planned to rebuild two factories to replace all composite panels.
UKAFFP chairman Geoff Molloy said: "Composite panelling is very prevalent in the food industry. We want insurance companies to assess risk realistically, by how the panels are managed, rather than just jacking up premiums."
The Food and Drink Federation said that it was currently deciding how to tackle the insurance premium hike issue.
{{NEWS }}
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