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Insurance and Design for electronics manufacturers

When designing electronics manufacturing process systems insurance is one of three universal challenges come into play and Deerns can model the relating scenarios.

It is crucial to stay abreast of ever-changing requirements in the electronics manufacturing industry and actively integrate these into the design of installation systems and the impact on insurance cost and premiums. In this article we consider three universal challenges which come into play when designing an electronics manufacturing site:

  • business continuity
  • insurance
  • ensuring sustainability standards.

Impact of insurance

In the electronics industry, insurers are imposing ever higher and more stringent requirements on installation systems. This requires careful consideration and consequently Deerns runs calculation models to assess the relevant weight of equipment capex, business continuity and insurance premiums per business case. In some cases, for example, a high investment in installations systems will only bring low returns on business continuity and could even lead to a higher premium.

Design of high-quality installations requires all-round expertise due to the complexity of interrelated networks such as electricity, data and indoor climate (HVAC) systems. Each electrical or HVAC installation system has its own requirements, for example, clean rooms require specific air ventilation designs for diverting gases and compressed air.

When assessing the insured value, business continuity is paramount, alongside rebuild value or fire damage. Fire-damaged equipment becomes far more costly than its original capex cost which is why insurers impose stringent safety requirements. One of the most important insurance requirements is a Maximum Foreseeable Loss (MFL) partition. Cordoning of areas shields the production process from the rest of the building enabling safe ongoing operations and minimizing overall downtime. Other safety requirements entail installing security systems, sprinkler systems and gas extinguishing systems.

Business continuity and energy

One of our critical starting points when starting design is to ensure business continuity and to avoid total or even partial production downtime as much as possible. Electronic manufacturers require exceptionally high machine availability (around 99%), supported by reliable power supply.

Consequently, we design power installations to ensure backup power and for scaling back on capacity. An N+1 configuration ensures backup power to minimize production interruptions. We also create systems that can reduce 1/10e or 1/2e of the total capacity for scaling back of production (temporary).

Deerns is exploring the possibilities of modular utility buildings, enabling different building systems to communicate with each other and for energy exchange, for improved production efficiency.


In addition to financial aspects, our customers’ sustainability goals are also at the heart of the design of facility systems. Central heating boilers and steam are being replaced by facilities which are completely gas-free. We design systems where heat pumps and cooling towers work in synergy making fossil fuel-energy redundant; and design air misting for demineralized (Reverse Osmosis) water in production processes requiring specific humidity levels.

Another important development is the use of higher temperature trajectories. This may seem counterintuitive, but cooling with 30-degree water is possible if the processes themselves are warmer. The higher the temperature, the less energy is needed to condition to that temperature. Cooling water to 6 degrees during a hot summer consumes a lot of energy. By designing systems that work with 12-degree water, less energy is wasted on cooling. This makes it possible to use higher-temperature water for cooling process in cooling towers.

At Deerns, we have the all-round expertise required to proactively prepare for the challenges of the future and tailor our facility systems accordingly. We know the parameters to make the right decisions which ensures that the production process remains operational in the safest and most sustainable way possible.

Let’s talk

Eric Stuiver

Sector Director Electronics