What is MFL? Why is it Important?

In the insurance industry, Maximum Foreseeable Loss (MFL) is an indicator used to assess the most severe financial loss a business might suffer in extreme disaster scenarios, such as fires, explosions, or equipment failures. MFL encompasses two major types of losses:

• Direct Property Damage (PD): Damage to facilities and equipment.
• Business Interruption (BI): Operational losses due to production stoppage.

Particularly in high-tech and chemical industries, business interruption often constitutes the major part of MFL.

The core assumption of MFL is that active protection measures (like sprinkler systems and fire department intervention) might fail in disaster scenarios. Therefore, insurance companies place greater emphasis on passive protection capabilities and structural resilience when assessing risk and setting rates. A lower MFL value indicates stronger disaster resistance, leading to more favorable insurance terms and costs.

Liansuo Construction Technology's FM Approved program is designed to meet the needs of MFL control, helping businesses reduce loss risks and enhance risk management levels through high-performance passive disaster prevention equipment.

How Does Liansuo's Program Limit MFL?

Liansuo Construction Technology provides an integrated solution certified by FM, addressing various disaster scenarios that impact MFL from four key aspects:

1. Explosion Risk Control: Precise Pressure Relief, Concentrated Loss Limitation

Explosions are a primary factor leading to MFL in industries like chemicals, energy storage, and dust handling. Liansuo designs explosion protection systems according to FM 1-44 standards, including:

1. • FM Approved Explosion Relief Fasteners (Explosion Pad Breaking Force 700N): Paired with rock wool sandwich panels, these fasteners release pressure quickly at 0.96-1.92 kPa, effectively protecting the main structure.
   • Traction Cable Design: Prevents explosion panels from detaching and flying off, reducing secondary damage and maintenance risks.

This system significantly reduces property damage and downtime, providing quantifiable evidence of MFL control for insurance companies.

1. Fire Compartmentation Control: Building Barriers to Stop Fire Spread

Fire is one of the most common triggers of MFL. Liansuo establishes a comprehensive fire separation system according to FM DS 1-42 standards:

1. • Fire and Explosion Resistant Wall Panels: With 3-hour fire resistance and ≥10.3kPa explosion resistance, suitable for high-risk areas like energy storage compartments and chemical storage zones.
   • Fire Stopping and Inspection: Using materials compliant with ASTM, FM, UL, CNS standards, and providing ISO/IEC 17020 certified third-party inspection reports to ensure no fire spread through pipe penetrations and building gaps.

This system effectively blocks fire spread, significantly lowering the MFL assessment value.

1. Isolation of High-Risk Substances: Independent Loss Limitation Unit Design

Storage areas for high-risk substances (like flammable liquids and hazardous chemicals) are focal points for MFL control. Liansuo provides fire and explosion-resistant storage containers (according to FM DS 7-29 standards) with:

1. • Multiple Protective Functions: Fire resistance, explosion resistance, controlled pressure relief, and liquid containment.
   • Modular Design: In case of an explosion or fire, damage is confined within the unit, not affecting the main facility or production chain. Through independent loss limitation design, high-risk areas are effectively isolated, reducing the overall loss scope.
2. Composite Disaster Prevention: Flood Protection Facilities to Break the Disaster Chain

Natural disasters like floods can trigger secondary events like electrical fires or chemical leaks, contributing to MFL. Liansuo offers FM Approved flood gates with the following features:

1. • Preventing Disaster Spread: Can be quickly deployed in control rooms, chemical storage areas, and other critical zones to prevent flood intrusion.
   • Innovative Clamping Design: No need for bolt fixation, eliminating wear and tear issues from repeated assembly and disassembly, enhancing durability and sealing efficiency.
   • Rapid Response Capability: Only two personnel are needed to install the flood gate, effectively responding to emergency flood situations.
   • Modular Extension Function: Can be infinitely extended using intermediate supports and braces, flexibly constructing large flood walls to protect factory perimeters and entrances from high water pressure.

This flood protection system not only enhances facility disaster resistance but also strengthens overall MFL control in insurance risk assessments.

Conclusion: Comprehensive MFL Reduction through Passive Protection Strategies

Liansuo Construction Technology, with FM Approved certification at its core, has established a comprehensive loss limitation solution system from explosion protection, fire control, high-risk substance isolation to natural disaster response. This not only helps:

• Reduce direct property and indirect operational losses,
• Enhance risk management performance,
• Demonstrate the company's disaster prevention expertise,

but also provides concrete, verifiable risk control evidence for insurance underwriting.

Businesses can evaluate the applicability and investment benefits of Liansuo's loss limitation solutions based on industry characteristics and facility conditions, in collaboration with insurance consultants and risk assessment experts. Choosing an internationally certified passive protection system is a crucial step for businesses towards high-resilience operations and robust risk management.