Are you a busy business leader curious about potential new insurance costs or puzzled by a recent surge in insurance premiums for a new build? Understanding these costs is crucial for keeping your budget on track and avoiding compliance issues. At XL Structural, we recognise the challenges of managing budget constraints and meeting regulatory requirements to ensure your buildings are both compliant and cost-effective. In this article, we’ll explore the key factors influencing the cost of insurance for commercial and industrial buildings. We'll address common concerns and provide valuable insights to help you make informed decisions and effectively manage your insurance expenses. Building Location The location of your building plays a significant role in determining your insurance costs. Insurers evaluate the risk associated with the geographical area where the building is situated. Factors such as crime rates, natural disaster risks (like earthquakes, floods, and storms), and proximity to fire stations and hydrants are considered. Buildings in high-risk areas tend to have higher insurance premiums. Conversely, buildings in areas with lower risk profiles may benefit from reduced premiums. For example, Christchurch's earthquake-prone regions typically see higher premiums due to increased risk, whereas buildings in Auckland might have lower premiums due to a relatively lower seismic risk. Climate Change Impact It is impossible to ignore the impact of climate change on insurance costs. The frequency and severity of severe weather events are increasing globally, leading to higher premiums as insurers seek sustainable pricing models. In New Zealand, flooding has been the most common weather event, accounting for over 90% of losses from natural disaster claims since January 2021. The New Zealand Government's National Adaption Plan, published in April 2022, outlines actions to address climate-related risks, reflecting the growing need for buildings to be resilient against such events. Building Construction and Materials The construction type and materials used in your building can greatly influence your insurance costs. Buildings constructed with fire-resistant materials, such as concrete or steel, generally attract lower insurance premiums compared to those made with wood or other combustible materials. Fire-resistant buildings are less likely to suffer extensive damage in a fire. Additionally, modern construction techniques and materials that enhance structural integrity and resilience to natural disasters can also result in lower premiums. In high seismic risk areas, the use of materials such as Expanded Polystyrene Panel (EPS) and Aluminium Composite Panel (ACP) requires robust risk management procedures, and insurers may limit coverage or increase premiums based on these factors. Building Size and Usage The size of your building and its intended use are also crucial factors. Larger buildings typically have higher insurance costs because they represent a greater risk to insurers in terms of potential loss. Similarly, the usage of the building impacts insurance premiums. For example, a warehouse storing flammable materials will have higher insurance costs compared to one storing non-flammable material. It's essential to accurately communicate the purpose of your building to your insurer to ensure appropriate coverage and cost estimation. Safety and Security Measures Investing in safety and security measures can significantly reduce your insurance premiums. Insurers favour buildings equipped with robust security systems, fire alarms, sprinkler systems, and other safety features. These measures lower the risk of damage and loss, making your building a safer bet for insurers. Installing surveillance cameras, security lighting, and access control systems can further enhance security and potentially lower insurance costs. In New Zealand, adhering to the Building Code’s safety requirements, which were updated in 2023 to include more stringent fire safety measures, can also be beneficial. Building Age and Condition Older buildings often have higher insurance costs due to their increased risk of structural issues, outdated electrical systems, and plumbing problems. Insurers may require a thorough inspection of older buildings to assess their condition before providing coverage. If the building is well-maintained and has undergone recent renovations or upgrades, it can help in securing lower premiums. Regular maintenance and timely repairs are crucial in keeping insurance costs in check for older buildings. For instance, buildings in Christchurch that have been retrofitted to meet earthquake safety standards often benefit from lower insurance premiums. Claims History Your claims history as a business owner can impact the cost of insurance for your commercial or industrial building. If you have a history of frequent claims, insurers may view you as a higher risk, leading to higher premiums. On the other hand, a clean claims history can work in your favour, potentially resulting in lower insurance costs. It's advisable to implement risk management practices to minimize incidents and claims, thereby supporting a favourable claims history. This is especially relevant in New Zealand where the Earthquake Commission (EQC) plays a significant role in claims related to natural disasters. Coverage and Policy Type The type and amount of coverage you choose for your building will directly affect your insurance costs. Comprehensive policies that offer extensive coverage, including protection against a wide range of risks, will naturally be more expensive than basic policies with limited coverage. It's essential to strike a balance between adequate coverage and affordability. Discuss your specific needs with your insurer to tailor a policy that provides the necessary protection without overburdening your budget. The Insurance Council of New Zealand (ICNZ) provides guidelines on understanding policy terms and coverage options. Under-Insurance Risks The COVID-19 pandemic has underscored the risks of under-insurance. High inflation, supply chain disruptions, and extended building costs have all contributed to increased claims costs. Ensuring your building's sum insured reflects current building costs is critical to avoid under-insurance, especially for specialised equipment and machinery that may have longer replacement times and higher costs. Recent data from the Reserve Bank of New Zealand shows an increase in construction costs by approximately 8% over the past year, highlighting the importance of regularly updating your insurance coverage to reflect these changes. Regulatory Compliance Compliance with local building codes and regulations can influence your insurance costs. Buildings that adhere to the latest safety and construction standards are generally viewed more favourably by insurers. Non-compliance or failure to meet regulatory requirements can result in higher premiums or even difficulty in obtaining insurance coverage. Ensuring that your building meets all necessary regulations not only promotes safety but also helps in managing insurance costs. The upcoming Financial Markets (Conduct of Institutions) Amendment Bill will further emphasise the need for compliance and may impact how insurance products are priced and offered. Deductibles Choosing a higher deductible can lower your insurance premiums. The deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in. By opting for a higher deductible, you take on more risk, which can result in reduced premiums. However, it's important to choose a deductible that you can comfortably afford in the event of a claim. Balancing deductibles and premiums are a key consideration in managing your insurance costs effectively. Risk Management Practices Implementing effective risk management practices can have a positive impact on your insurance costs. Conduct regular risk assessments to identify potential hazards and take proactive measures to mitigate them. Employee training programs, routine safety inspections, and emergency preparedness plans are all part of a robust risk management strategy. Demonstrating to insurers that you have comprehensive risk management practices in place can lead to lower premiums and better coverage terms. Insurance Provider Finally, the choice of insurance provider can also affect your insurance costs. Different insurers have varying risk appetites, pricing models, and discount programs. It's crucial to shop around and compare quotes from multiple insurers to find the best coverage at a competitive price. Working with an experienced insurance broker can help you navigate the options and identify the most suitable insurance provider for your specific needs. Conclusion Understanding the factors that affect the cost of insurance on commercial and industrial buildings is essential for effective budget management and risk mitigation. By considering the building's location, construction, size, usage, safety measures, and more, you can make informed decisions that optimise your insurance expenses. Implementing risk management practices and maintaining compliance with regulations further enhances your ability to secure affordable and comprehensive insurance coverage. Remember, the right insurance policy is a critical component of protecting your investment and ensuring the long-term success of your business.

In the early stages of planning industrial or agricultural buildings, the team here at XL Structural Steel are regularly asked about bird-proofing. Bird-proofing is a consideration in quite specific environments and circumstances. For some, it doesn’t even factor but for others, it’s a primary concern. In this article, we explore all the various options for bird-proofing your building and what will work best for you. So why should you bird-proof your industrial building? Generally, people are concerned about bird-proofing when they have had a problem in the past. This could be from birds nesting above equipment and causing damage from acidic bird droppings. It could be a health concern, particularly in food processing areas, where birds could transmit harmful diseases. It can also be aesthetically unpleasant when birds fly about and nest inside a building. Agricultural Buildings Agricultural buildings seem particularly prone to attracting birds because there are more birds in rural settings. Additionally, these sheds often have a food source that attracts birds such as grain, seeds, produce, or animal feed. If birds can roost on the rafters of the shed, it is likely that whatever is below will end up covered in bird droppings, which will corrode the paintwork of tractors, vehicles, and machinery, or damage produce. Industrial Buildings In an industrial building, it is vital to consider bird-proofing options when your operations require doors to be left open, you have open canopy areas, or you have product or machinery that is likely to be impacted by birds and their droppings. Bird Proofing options There are various bird-proofing options available in New Zealand that are suitable for a range of applications and have varying degrees of success. Some of these options include: Bird Brush for Roller Doors and Sliding Doors Starting with the basics, Bird Brush installed on the tops of Roller Shutter doors is a good starting point for bird-proofing your building. Bird brush is a dense bristle strip that is fixed at the top of the door close to the gap between the curtain and the door framing. While this method does go a long way to prevent birds from entering, it is not 100% effective. Bird brush installed to warehouse/factory doors may provide enough bird-proofing for your industrial buildings if your proposed new building is going to be fully enclosed, the doors will predominately remain closed, and the potential damage from birds within your building is low. Birdproof Rafter & Purlin Design The two areas birds typically nest in are open sections in the rafters and purlins. Structures using universal beams and open cold rolled sections are particularly prone to birds. To properly birdproof, closed sections need to be used for rafters and purlins and the roof bracing needs to be installed on the top of the structure. As many of our customers are concerned about bird proofing, we have a unique structural design using an RHS rafter (rectangular hollow section), and Steelbone enclosed purlin that creates a genuinely zero-bird perch rafter/purlin design. This design gives a premium long-term solution without the need to retrofit alternatives. However, there are more costs associated with this option as the Steelbone purlins use more material than an open purlin. Timber Purlin At XL Structural Steel, we also use a timber purlin with our RHS rafter to create a bird-proof solution. A timber purlin works well on smaller bays up to six metres in width (timber is typically available up to 6m lengths). We find that some building owners and users like to have some timber in the structure as it has a nice feel in terms of the environment. Find out more about the pros and cons of different purlin options here. Bird Netting Bird nets can be retrofitted to existing buildings and are used to prevent birds from roosting and nesting under canopies, or on top of rafters and purlins. This can be a cost-effective way to bird-proof your building after it is built. The downside of netting is that the birds can sometimes find a gap in the netting, get stuck and die. Netting throughout the building can also be visually unappealing. Other Retrofit options Pest control services have other retrofit solutions available such as: Bird spikes: Provide a harmless and non-disruptive bird deterrent typically used on the exterior of the building to protect against larger birds. Bird repellent gel: This is a sticky repellent gel that can be applied to perch areas such as beams or bracing elements to prevent birds from landing and roosting. Sound deterrents: Utilising a bird's sensitive hearing and natural alertness to noise, sound deterrent scarers use specific tones and frequencies to repel a variety of birds. However, these sounds can be annoying to staff working in the building. Cheap Lining Options In some instances, our team have seen plastic or paper lining fitted to the underneath of the purlins. While this can be a cheap upfront cost to retrofit, this is a very short-term solution as it can deteriorate and sag. Birds could also find a way to get above these linings, leaving you with dead birds and a far less desirable look. Canopy lining using Aluminium Composite Panels Another option is lining the underside of the canopy with Indurabond cladding or similar cladding products. Being a solid material, this comes up looking sharp and is a long-term solution. This is especially beneficial when you are looking for a clean design under your canopy or when there is a structural requirement for C-section purlins, typically in order to get a greater span between bays. SUMMARY Choosing the right bird-proofing solution depends on your building's unique needs, budget, and preferences. In many cases, people choose to simply bird-proof the open space that is most at risk from birds. Here are some projects we have worked on where bird-proofing was a consideration: Attach2 included XL Structural Steel’s enclosed purlin solution in the open canopy. However, they didn’t require a bird-proof solution within the enclosed building. Compac Furniture used an Induracore lining to the open canopy as the bay spans were too large for an enclosed purlin. Shade System required a zero bird perch rafter to ensure the environment was birdproof. Kiwi Lumber Masterton required a zero bird perch rafter to ensure birds couldn’t perch as the building was not able to be fully enclosed. It is important to consider bird-proofing options when planning and designing your new industrial building. Bird-proofing can maintain the long-term value of your property, save significant maintenance costs, and protect your assets and employees’ health. There are various bird-proofing options available from retrofit options to XL Structural Steel’s unique RHS rafter with enclosed purlins system. By choosing the right solution, you can prevent bird infestations, save property maintenance, and enjoy long-term savings. Get in touch with the XL Structural Steel team today to discuss your particular requirements and we can advise in detail.

Over the years we have seen and used numerous purlin types. Each has its pros and cons depending on your budget and requirements. In this article, we will review the pros and cons of key purlin types so you can be informed when deciding what purlin type is best for your next industrial building project. What is a Purlin? A purlin is a horizontal framing member, usually spanning between rafters or portals, and provides support for the roof cladding. Here is a photo pointing out where you'd see purlins: You can view more building terms in our commercial building glossary. Key types of purlins include: Steelbone enclosed purlins. C section purlins. Timber purlins. RHS purlins. Tophat purlins. Steelbone Purlin The Steelbone purlin is an enclosed V-shaped purlin manufactured from a high-tensile galvanised steel coil. The Pros of steelbone purlins As the purlin is an enclosed section it removes the typical perch areas available to birds. When the building is designed with the Steelbone purlins resting between the rafters coupled with XL Structural Steel's unique RHS rafter profile and flat roof bracing set above the purlins, it creates a genuinely zero-bird perch rafter/purlin design. The Steelbone purlin also minimises potential dust or material build-up. Because of the strength of the profile, it can typically be spaced further apart than other purlin types. the Cons of steelbone purlins The sizes currently available in the Steelbone purlin mean the purlins can typically span up to 8.5m. In some instances, this means that more portals may be required in a larger building due to this limitation. As the Steelbone purlin is an enclosed section it uses more steel per linear meter than open-profile purlins — this typically means it will cost more. With the above factors in mind, the Steelbone purlin is a great option for agricultural building uses where perching birds are a known problem as birds can cause significant damage to machinery and valuable products. It is also a suitable option for open buildings or industrial canopies where birds have unlimited access to the building. This is because the Steelbone purlin system prevents birds from being able to perch in the rafter space. If you're looking for a building with clean lines, is aesthetically pleasing, and has an architectural look, Steelbone purlins are a great choice. Typically this purlin option wouldn’t be for someone who is looking for the cheapest purlin option and doesn’t see the value in the above advantages. C Section Purlin The C section purlin is one of the most common purlin profiles used for large-scale industrial building projects. This is a high-tensile galvanised steel profile and is available in sizes from 150-400mm deep and in a variety of gauges to suit the engineering requirements of the building. The C section purlin also has a range of name abbreviations depending on the supplier. These include MC purlins, CLR purlins, and DHS purlins. the Pros of C section purlins C section purlins can optimise the building design by utilising the large range of profile depths and purlin thicknesses. It is an efficient, lightweight roll-formed purlin system and the open C section profile uses less steel per lineal meter than a comparable enclosed purlin. the Cons of c section purlins The most notable downside to C section purlins is that they're not perch-free. The open profile leaves the ability for birds to perch in the purlin and potentially cause issues with bird droppings and mess. Requires fast bracing/speed bracing between purlins. The C section purlin is a great option for industrial buildings and commercial buildings where it is important to optimise the building's design efficiencies and where birds are not likely to be an issue. Image above: Permacrete - Factory Gisborne || Image below: Warehouse Storage - Masterton Timber Purlins Timber purlins are less common in the industrial building market however XL Structural Steel's parent company Alpine Buildings NZ Ltd typically use timber purlins in their farm storage buildings and lifestyle buildings. the Pros of timber purlins Limits noise: The external roofing is fixed to timber instead of steel. ‘All-steel’ sheds tend to be noisier, especially in wild weather where you can get a ringing effect. However, timber framing noticeably softens the sound, making it great for noisy workshops. Birdproof design: The timber purlins coupled with the RHS portal system that XL uses gives the ability to create a zero-perch rafter design. Easy to modify: The timber purlins make internal fixings such as wiring easy to install. Insulation: Timber is known to be a better insulator, which helps the shed stay at a more consistent temperature. It also minimises condensation or ‘shed sweat’. the Cons of timber purlins Bay size is limited to between 4.5-6.0m (timber lengths). Smaller purlin spacing means more purlins are required. XL has utilised the timber purlin successfully in a number of industrial workshops across New Zealand. These applications have had up to 6m wide bays which optimises the number of truck bays that can be designed into the building length and keeps within the parameters of the timber purlin. Timber purlins are a great option for noisy workshops as it softens the sound and gives an ambient feel. Timber purlins are not a suitable option when looking to maximise the bay widths. RHS Purlin The RHS (rectangular hollow section) purlin is a structural steel purlin and would be considered a premium purlin option. This option would typically be used in the building design where other purlins don’t meet the engineering requirements. The pros of rhs purlins Strong: Compared to other roll-formed purlins the RHS purlin is very strong and can be used where “compression struts” are required to assist with the bracing elements of the building. Birdproof: The RHS purlins coupled with the RHS portal system that XL use, give the ability to create a zero-perch rafter design. Larger purlin spacing: Due to the strength of the RHS purlin, typically larger spaces between purlins can be achieved. the Cons of rhs purlins This type of purlin would typically cost more than roll-formed purlins. Typically the RHS purlins are used in applications where the roll-formed purlins (c section purlins) cannot meet the engineering design requirements for particular locations of the building or to gain larger spacing between purlins. Tophat Purlin The Tophat purlin is often seen used on lightweight roll-formed buildings. the Pros of tophat purlins It has a very lightweight profile. The Cons of tophat purlins The Tophat purlin profile is typically designed to sit above the rafter: This forms a significant bird perch. Lowers the usable headroom. Not usually able to be used on large spans due to the tendency for the purlin to twist and fail. Tophat purlins are a suitable option for some residential and lifestyle shed designs but would typically not be the best option for an industrial building, or buildings engineered for high building loads. Image sourced from Metalcraft. Image sourced from Shed Boss. In conclusion, there are a number of purlin types available. As explained, the purlin that will best suit your next project will depend on your specific project requirements and priorities. If you are in the process of planning a new industrial or commercial building you may also be interested in our articles on the most efficient way to design an industrial building or the cost per m² of a commercial or industrial building. Alternatively, please feel free to reach out to the team directly.