Many times Insurance Companies require a secondary water supply when values are above say $150-200 million in certain types of occupancies i.e. warehouses, manufacturing, etc. Often you will see an electric pump with a diesel back up. Sometimes on the same water main, sometimes on a different main. Common is to have the electric pump off the city water main with a suction tank and diesel pump as back up. Is it required by code NO, but as an insurance carrier I can ask for more then the code if our underwriters deem it necessary. If the client does not want to do it then they may pay more for insurance premium, find another carrier, or split the overall coverage with several carriers, each taking a piece of the risk.
The concern is if the primary water supply is lost, i.e. water main break, power failure the facility will have fire protection.