Consultants ⋅ Engineers ⋅ Project Managers
Heavy Industry

Heavy industrial losses can arise through a variety of circumstances such as mechanical and material failure, fire, earthquakes, blasts, explosions and extreme weather events. McLellan has extensive expertise in the heavy industry sector and has provided engineering advisory services on a wide range of losses throughout the world.

We provide insurance advisory services on all aspects of heavy industrial losses within the minerals, iron, steel and non-ferrous metals industries, from mining through materials handling to primary processes, mills, forges, foundries and finished product lines.

With our extensive knowledge of the metals and minerals industries, we are able to carry out causation investigations as well as assess the adequacy of the original design and construction of plant and equipment. This is not only to mitigate the actual loss but also to assist in identifying measures that might be used to mitigate against similar future incidents and, where required, support potential subrogation actions. These investigations can be supported by destructive, non-destructive, metallurgical and other material properties tests, as well as the use of discrete element and finite element modelling to simulate and analyse plant/equipment behaviour.

McLellan can undertake site inspections to assess and scope the damage to a wide range of plant and equipment including ore processing machinery, bulk material handling/conveyor systems, pre-treatment plants, smelters and furnaces, casters, rolling mills and extrusion/pultrusion equipment, final product treatment and coating facilities as well as all associated ancillary plant and equipment, buildings, structures and industrial utilities. We advise our clients in a proactive manner when evaluating reinstatement proposals, including the necessary debris removal and cleaning operations, demolition works as well as temporary and permanent reinstatement works. Based on our knowledge and extensive experience, we also review procurement strategies, tender assessments and contract award for reinstatement works and we work closely with the insured to ensure that critical items of plant return to operation as quickly and as safely as possible.

An integral aspect of the services provided on heavy industrial losses is our provision of initial reserve calculations and the development of detailed quantum and cost assessments of the permanent and temporary reinstatement works in order to determine the reasonableness of property damage claims. Where required and defined under the policy, and in conjunction with the loss adjuster, we can also calculate and advice on the actual cash (depreciated) values.

McLellan understands the importance of local issues such as legislation, productivity, methodologies and resources available for reinstatement works in evaluating losses and can assist with the appraisal of the business interruption and production loss assessment including review of process production data and compiling before, after and during loss scenarios.

McLellan, having specialist expertise in the metals market, has in-depth knowledge regarding historical, current and forecast prices for commodities and finished products which can be used by forensic accountants and loss adjusters in the assessment, review and resolution of business interruption claims.

McLellan can develop event timelines and reinstatement works critical path programmes and where required, based on these, can monitor progress of reinstatement works on site. We also work closely with the insured by providing detailed advice on potential improvements to reinstatement timescales, including the proposed logic and sequencing for completion of the repairs and reinstatement of operations and production.

Heavy industrial processes where McLellan can provide insurance loss advisory services include:

Iron and steel – primary processes:

  • Pelletising, coke production and sintering
  • Blast furnace and gas-based direct reduction
  • Basic oxygen steelmaking
  • Electric arc steelmaking
  • Hybrid and legacy processes
  • Ladle refining and secondary treatment
  • Induction furnaces
  • Continuous billet, bloom and slab casting
  • Foundries
  • Forging

Iron and steel – rolling and finishing:

  • Rod and bar mills
  • Hot strip mills
  • Plate mills
  • Pickling lines
  • Cold mills
  • Annealing lines and temper mills
  • Galvanising and tinning lines
  • Coating and paint lines
  • Cut to length and slitting lines

Iron and steel – tubular products:

  • Electric Resistance Welded (ERW) small diameter pipes
  • Submerged Arc Welded (SAW) large diameter pipes
  • UOE, 3 roll bending and spiral formed pipes
  • Pipe testing and inspection
  • Seamless and stainless steel pipes

Non-ferrous metals:

  • Aluminium smelters
  • Copper smelters
  • High alloy extrusion plants
  • Seamless copper pipe production
  • Titanium process plant
  • Foundries and forges
  • Rolling and extrusion of semi-finished and finished products

Minerals and material handling:

  • Mining
  • Crushing and beneficiation plants
  • Tailing disposal
  • Site utilities
  • Bulk material handling and storage
  • Ship and rail loading and unloading