Case Study

Relevant Risk: Production


A lack of understanding of the inherent risk associated with combustible dusts in an operating sugar refinery led a major explosion that resulted in 14 deaths and 38 serious injuries. The insurance loss was settled for $345M USD.


For a sugar refinery, dust is commonplace. A lack of awareness of the potential exposure relating to combustible dust had devastating consequences.


This loss, and other smaller losses, has resulted in changes to standards and legislation around the globe. In Australia, standards associated with the classification of areas where combustible dust is present were revised and reissued.


This is a common issue for many parts of the food industry. An awareness of the potential hazard means that the risk can be understood and appropriately mitigated.