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Smoke Damage after a Fire – A potential total Loss? The insurance business is based on the law of large numbers and the use of historic data to guide its decision making. The past history of fire losses have treated smoke damage as a secondary issue. It meant smoke damage after a fire was a cleanup issue and if needed seal with a coating to make it go away. The primary issues were appearance and odor.  This approach was based on a hundred years of experience with fires that were fueled by wood and cellulosic material. Smoke and Soot Characteristics Wood smoke residue is a complex mixture of particulates and gases, primarily consisting of carbon (soot), condensed wood tars, and various organic compounds. It is often deposited as a fine, powdery, and sometimes sticky substance on surfaces, with its exact composition depending heavily on the wood type and combustion efficiency. This was the traditional fuel source for fires and the time to reach flashover in a room was over 25 minutes.   Fast forward to today’s fuel package. It is now petroleum based synthetic materials and the flashover time has been reduced to under 5 minutes.  Synthetic Materials (Plastics, PVC, Furniture): Releases toxic chemicals including hydrogen cyanide, benzene, styrene, and dioxins. Synthetic materials can generate up to 12.5 times more smoke particles per mass of material consumed than wood.   Now add the fuel of a lithium-ion battery package. Lithium-ion battery smoke residue is a highly toxic, corrosive mixture primarily composed of carbon soot, fluoride compounds, volatile organic compounds (VOCs), and metal oxides (cobalt, nickel, copper, manganese). Key components include hazardous hydrogen fluoride gas, carbon monoxide, and electrolytes like ethylene.   The response of the insurance industry to these changes has been uneven. Soot Litigation A court case involving smoke and soot as physical damage, Maxus vs Travelers, was based on soot from a fire that occurred during a builder’s risk project in Birmingham, Alabama in 2018. The initial position by Travelers was that there was no “physical damage”, so the soot deposits were not covered by insurance. The soot was not in the building of fire origin, so no damage occurred.   The presence of dangerous chemicals in soot that was distant from the fire was discovered by the building owner and caused the landlord of the occupied buildings to evacuate the buildings due to a perceived risk from these products of combustion. This was reported to Travelers 6 months after the original fire. The landlord wanted coverage for the remediation of the soot and the lost income from the evacuated buildings. Travelers declined the claim for the other buildings. The case was in litigation until 2023. Travelers lost the court case and were ordered to pay the claim.   Travelers appealed the case and in August 2025 the appeals court upheld the judgement that Travelers should pay the damages.   This case is important as the occurrence was not in California. There have been a number of lawsuits in California based on wildfire soot damage to unburned homes. This was originally thought to be a California issue. The decisions in Alabama would suggest that the genie is out of the bottle.   Given the higher level of toxins present, it is no longer acceptable to simply wipe down and paint over the soot from a fire. In many cases the surface materials must be removed and replaced. These are soft goods such as carpets, furniture and fabrics to permeable surfaces such as drywall and wood flooring. Mechanical systems such as duct work and furnaces can be contaminated.  This means small fires that generate a lot of smoke make the loss much more expensive. This is a game changer for many insurance companies.   Are Residential Sprinklers a Solution? Smaller fires that are controlled faster would reduce the soot generation. We have the technology to do this. One way to reduce the fire loss would be installation of residential fire sprinkler systems. Originally added to the model codes in 2005, legislators have routinely stripped residential sprinkler systems out of the code adopted by state and local governments. The stated reason is that the cost of the sprinkler system would make homes unaffordable. The insurance industry was silent on this practice. Perhaps findings that soot from the fire can cause a constructive total loss will change this view. The cost of a sprinkler system may now be a very reasonable expense.   Stay Tuned to this Channel Now that the genie is out of the bottle, the insurance industry will respond to the profit threat. There are generally two paths that insurance companies take when confronted by a new loss exposure, excluding it or pricing for it.   Pricing for the exposure may not be a practical option. For admitted companies the states regulate rates. Converting small losses into large losses across the board would create a cost increase that would be very difficult to get regulatory approval.   The court cases have shown that existing language in the policy did not preclude coverage. Watch for stronger, more specific language to emerge. Look at the Covid related exclusions that are now common as a model for these exclusions.  How to add back the coverage will be the next hurdle.   The Driehaus Difference We recognize this issue and it reinforces the need to have adequate limits of insurance for your property. If a small fire can trigger a total loss due to toxic soot residue, the application of a coinsurance penalty would be a financial threat to you. Since we recognize this issue, we can be an advocate for you and help you manage the claims process. We want to be your insurance provider. Call our office, 513-977-6860 or reach out to use via our website, www.driehausins.com

The eBike has changed the nature of the bicycle forever. It is now practical to commute for longer distances, over more challenging terrain and at higher speeds. eBikes are generally described within three different classes. Class 1 Electric Bicycle — A bicycle equipped with fully operable pedals and an electric motor of less than 750 watts that provides assistance only when the rider is pedaling and ceases to provide assistance when the bicycle reaches the speed of 20 miles per hour. Class 2 Electric Bicycle  — A bicycle equipped with fully operable pedals and an electric motor of less than 750 watts that may provide assistance regardless of whether the rider is pedaling and is not capable of providing assistance when the bicycle reaches the speed of 20 miles per hour. Class 3 Electric Bicycle  — A bicycle equipped with fully operable pedals and an electric motor of less than 750 watts that provides assistance only when the rider is pedaling and ceases to provide assistance when the bicycle reaches the speed of 28 miles per hour. State and local laws use these classes to define where the bikes can be used and if a helmet is required.  Most laws treat eBikes in a similar fashion to bicycles with no specific requirements for operator licensing or vehicle registration. The laws clearly differentiate eBikes from mopeds and motorcycles.  Does this mean you do not need insurance for an eBike? Homeowners Insurance  Your homeowner’s insurance policy will generally have an exclusion for motor vehicles. There may be coverage for vehicles that are not licensed for road use and are used to service your premises or are designed to assist the handicapped.  Coverage may be present if the vehicle is designed solely for off premises use. In the case of an eBike, it is not a premises service vehicle, and it is not designed and intended as an aid for a handicapped person. So, there is probably not going to be coverage from your homeowner’s policy if there is an accident that causes property damage or bodily injury. Given the higher weight and speed of an eBike the potential for serious injury and property damage should be considered. Personal Auto Insurance Your personal auto policy generally contains an exclusion for vehicles with fewer than 4 wheels or recreational vehicles. This clearly excludes coverage for an eBike. Personal auto policies may offer some coverage if the vehicle is used off road. Since many eBikes are used on the public streets, this would preclude coverage for these eBikes. Policies for motorcycles and mopeds may not be appropriate as those vehicles are required to be licensed. Most eBikes do not require registration. They may not fit the definitions within these policies. Coverage Options If the eBike is not covered by the standard auto and homeowners’ policy, what are your options? There are endorsements that can be added to your auto policy to cover these exposures. The endorsements may require a description of the vehicles, and you must designate the limits of coverage for the insurance to be provided. The endorsement may be similar to a golf cart endorsement, so review the coverage carefully. Some insurers are offering endorsements to their homeowners’ insurance to add this coverage. You need to carefully evaluate the language of these endorsements to see that the coverage offered is broad enough for your purposes. Many companies may offer property insurance, but keep the liability exclusuions. In either case be sure the policy you endorse can be included in any umbrella liability policy you have in place. Some of these endorsements originated with toy type vehicles and the size, weight and speed of an eBike may create a loss that requires higher liability limits. Standalone eBike insurance Some eBike dealers offer standalone policies. While this may seem to be an easy option, the ability to increase the liability limits may not be available. Your umbrella insurer may not attach to this policy if the terms, conditions and insurer are not acceptable to the umbrella carrier. The Driehaus Difference It is important to discuss this type of risk with an insurance professional. We can craft your personal lines insurance program to cover this type of exposure. If you did not know that it was not covered, you would not ask for the coverage. The myth of only paying for what you need assumes that your knowledge of insurance products makes you an informed buyer. We want to be your insurance provider. We want to be your insurance provider. Call us at 513-677-6860 or reach out via our website www.driehausins.com

Special Event Insurance There can be many events and celebrations in your life. Those that you host and organize may have some loss exposures that fall outside of your personal lines insurance program. You can reduce the stress around these events by placing a special events insurance policy to relieve the financial burden if things do not go as planned. Here are some of the things that a special event policy will address.   Event Cancellation – From a winter storm that makes travel impossible to a severe storm that disrupts your outdoor event, you cannot control mother nature. If a key family member is incapacitated that can also cancel your plans. Reimbursement is available for transportation, food, catering, property and equipment rentals, hall, and location rental expenses. Check the policy for any cancellation restrictions that may apply.   Special Attire  – From wedding dresses to period correct costumes for an event there can be expenses related to having the right look. If your event involves jewelry or wedding rings, coverage for loss or theft can be provided.   Gift Coverage  - From wedding gifts to silent auction items, your event may have a number of high value items present. Special event insurance programs can provide for theft and damage protection for these items.   Photo / Video - With social media comes the need for photography and video services at your event. If the provider fails to appear or loses your images, there can be funds made available to reconvene to take new photos or videos.   Lost Deposits  - If a vendor or venue should go out of business or declare bankruptcy before your event, special event insurance can cover those lost deposits and expenses.   Call to Duty - With many of our citizens serving in the armed forces, a return to duty call or a revocation of leave can disrupt the best laid plans. Special event coverage can recover costs from cancellation related to a call to duty event.   To enhance your liability protection against bodily injury or property damage claims you may add these following coverages to a special events policy.   General Liability - Many venues require liability insurance from the user. Special event insurance can meet those contractual requirements. Your personal policy may not offer the coverage for an event away from your residence.   Liquor Liability  - If there are alcoholic beverages served at your event, there may be exposure to liquor liability. Since the event is not at your residence, your homeowners’ insurance may not respond to a claim. Special event insurance can offer this protection.   The Driehaus Difference We understand the importance of tees events in your life. We also recognize that your personal insurance program may not offer the right coverage for the event. Special event insurance is a very cost-effective method to protect the unique loss exposures presented. Call us ta 513-977-6860 or reach out via our website https://www.driehausins.com/  for professional insurance assistance. We want to be your insurance provider.

A Professional Guide for Employers Clear Compliance Steps for Safety Managers and HR Professionals Introduction OSHA recordkeeping and reporting are essential for tracking workplace injuries and illnesses, improving safety, and ensuring regulatory compliance. Accurate records help employers identify hazards, implement controls, and demonstrate their commitment to workplace health and safety. Enhanced Reporting Program for High Hazard Industries Establishments with 100 or more employees in designated high hazard industries (see Appendix B to Subpart E of 29 CFR 1904 ) must electronically submit detailed information about each recordable injury and illness from their previous calendar year's OSHA Form 300 and Form 301 to OSHA. What to Report: Include the date, physical location, severity of the injury or illness, details about the worker, and how the incident occurred. Applicability: Check if this requirement applies to your establishment at https://www.osha.gov/itareportapp Data Protection: Submitted data will be controlled to prevent identification of specific individuals. This information helps OSHA, prospective employees, and researchers better define workplace hazards and controls. Reporting Requirements General Rule: Employers with 10 or more employees must keep records of serious work-related injuries and illnesses. Some low hazard employers are exempt; see the list of exempt employers f or details. Minor Injuries: Cases requiring only first aid do not need to be recorded. Serious Injury Reporting: All employers, regardless of size or industry, must report: Worker fatalities within 8 hours Amputations, loss of an eye, or hospitalizations within 24 hours These events can be Reported online or by phone   Electronic Submission Requirements OSHA requires certain employers to electronically submit injury and illness data. The requirements differ by establishment size and industry: Employers with 250 or More Employees: Must electronically submit their OSHA Form 300A summary data annually. Employers with 20–249 Employees in Designated High Hazard Industries: Must also electronically submit OSHA Form 300A summary data. See the list of designated establishments for details. Submission Deadline: March 2nd each year for the previous calendar year's data. How to Submit: Use the Injury Tracking Application (ITA). Note updated sign-in procedures since October 2022. Maintaining and Posting Records Retention: OSHA logs and supporting records must be kept at the worksite for five years. Annual Posting: From February through April, employers must post a summary of the previous year's injuries and illnesses (OSHA 300A Form) at the workplace. Fillable forms are available from OSHA . Incident Rate Calculations Employers can use OSHA 300 data to calculate key safety metrics, such as the Total Incident Rate and the Days Away, Restricted, or Transferred (DART) rate. Total Incident Rate: Indicates the frequency of all recordable injuries and illnesses per 100 full-time employees per year. DART Rate: Measures the rate of workplace injuries and illnesses resulting in days away from work, restricted duties, or job transfers. Calculation Example: Suppose your company had 4 DART cases last year and 100,000 total hours worked. DART Rate = ( Number of DART cases × 200,000 ) ÷ Total hours worked DART Rate = (4 × 200,000) ÷ 100,000 = 8.0 This means your DART rate is 8.0 per 100 full -time employees .   Benchmark your rates using the Bureau of Labor Statistics calculator . Use of Incident Rates Incident and DART rates are often required for contractor and supplier qualification during bidding processes. Insurers may use these rates to assess workers’ compensation and general liability risks. Higher-than-average rates can negatively affect your insurance terms and premiums. First Aid Only Cases Only serious injuries and illnesses are recordable. OSHA defines what qualifies as first aid; familiarize yourself with these criteria to avoid over-reporting. See the OSHA first aid definition for guidance.   The Driehaus Difference Insurance without risk management is incomplete. Understanding OSHA rules, recordkeeping, and how data is used in business and insurance is crucial.   Need assistance? Visit www.Driehausins.com or call 513-977-6860 for expert help managing your OSHA compliance and risk management program.

Indentifying and Knowing When we ask a client who their insurance company is they often answer with the name of their agent. We are flattered that you identify with Driehaus Insurance, but beyond our company is the insurer who provides the policy terms and conditions that will ultimately determine your claim settlement. You should know exactly who this is. Here are some of the terms that are important in identifying and knowing your insurance company. Admitted versus Non-Admitted Status Carriers can be an admitted carrier who is licensed in the state you are domiciled in and is subject to regulations and reviews by that state insurance authority. These are often called standard market companies. The products, rates and practices of these firms are all subject to state regulation. A non-admitted carrier is not licensed by the state and does not have to submit its forms, pricing, and practices to state regulations. Non-admitted carriers are often referred to as Excess and Surplus (E&S) carriers. These markets are used when standard markets decline to offer coverage for your exposures. These markets may also offer coverage for emerging risks, high hazard exposures and new types of exposures that the standard market has not yet covered. It is important that you know the difference as the forms and conditions of coverage for a non-admitted carrier may be different from those offered by a standard carrier. One area of difference with E&S companies is that many of their products are written on claims made basis. This means you have coverage for claims that are reported in the policy period.  This is different from a standard market occurrence form where coverage for any claim that occurs during a given covered policy term is covered regardless of reporting date. If you have any exposures that have a potential long reporting lag, this can be a significant concern. If you are new to claims made coverage, be sure to discuss this with your agent. Insurer Financial Ratings You need to have an insurer that will have the funds available to pay your claim. Insurance carriers are rated by several services that offer their opinion of the financial strength of the carrier. AM Best is the most prominent service provider with the following ratings: All of these ratings are in the opinion of AM Best. Best Financial Rating Scale Rating Categories Rating Symbols Rating Notches* Category Definitions Superior A+ A++ Assigned to insurance companies that have a superior ability to meet their ongoing insurance obligations Excellent A A- Assigned to insurance companies that have an excellent ability to meet their insurance obligations Good B+ B++ Assigned to insurance companies that have an good ability to meet their insurance obligations Fair B B- Assigned to insurance companies that have a fair ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions Marginal C+ C++ Assigned to insurance companies that have a weak ability to meet their ongoing insurance obligations. Financial strength is very vulnerable to adverse changes in underwriting and economic conditions Weak D - Assigned to insurance companies that have a poor ability to meet their ongoing insurance obligations. Financial strength is extremely vulnerable to adverse changes in underwriting and economic conditions *Each Strength Rating Category from “A+” to “C” includes a Rating Notch to reflect a graduation in financial strength. In addition to the overall rating, there is also a Financial Size Category Rating assigned to each carrier. This is based on their policyholder surplus (PHS). The larger the surplus the more resources the carrier has to pay claims. Financial Size Category Table Class Adjusted PHS ($ Millions) Class Adjusted PHS ($ Millions) I Less than 1 IX 250 to 500 II 1 to 2 X 500 to 750 III 2 to 5 XI 750 to 1,000 IV 5 to 10 XII 1,000 to 1,250 V 10 to 25 XIII 1,250 to 1,500 VI 25 to 50 XIV 1,500 to 2,000 VII 50 to 100 XV 2,000 or greater VIII 100 to 250     Your agent should be able to provide these ratings to you as part of the quoting process. They are important as some lenders and contracts specify ratings and size categories for insurance policies. If your umbrella or excess liability policy is placed separately from your primary carrier, this policy may have rating and size requirements for the underlying insurance policies. Agency or Broker Relationship Depending on the carrier involved the relationship between that company and your insurance agent can vary. For most standard admitted companies the agent has a contract with that insurance company and acts as their agent. Their first duty is to the insurance company and the insurance company pays their commission and revenue. Agencies may represent multiple insurance companies, or the agent can be an employee of a single insurer. A broker arrangement is when the insurance agent is working for the insured and solicits coverage from carriers with limited or no sales commission. The insurance agent has its first duty to the insured. The agent derives their revenue from fees for marketing and placing coverage and fees for ongoing policy service. This is a common arrangement for very large insurance programs. It can also be used when the policies being placed are E&S policies and the insurance carrier does not offer commission to the agent. A hybrid arrangement can exist when an independent agent seeks coverage with carriers, they are not licensed with via a wholesale broker. The wholesale broker has access to multiple carriers and makes that available to independent agencies. Wholesale placements are generally done at reduced commission for the retail agent as the wholesale agent is taking compensation for the placement. This arrangement offers the retail agent a much wider marketplace for coverage. The Driehaus Difference We are an independent agency representing a number of insurance carriers. We have relationships with wholesale brokers to expand our reach into alternative markets. We have not pursued broker relationships or offering services outside of an insurance relationship. We want to be your resource for insurance information and assistance. Knowing the type of carrier, their strength ratings, and the type of arrangement between the insurance company and the agent is information you need to know and to understand. Call us at 513-977-6860 or contact us on the internet at www.driehausins.com  and we can discuss these business practices with you in detail.

As  winter sets in here are the things you should evaluate. Fire sprinkler systems need your attention to prevent a freeze event that can either impair protection or cause water damage. Frozen sprinkler piping can easily cause a major property and business interruption loss at your property. Building Temperature for wet pipe systems Wet pipe sprinkler systems are filled with water and must be kept above 40 degrees F to prevent damage. If you have any areas of your building where the temperature may drop, consider improving heating, insulation or adding a low building temperature sensor to that area. Do not shut off or isolate sprinkler lines dues to cold weather. The system design depends on complete protection and a large fire in a non sprinklered area could overwhelm your system. Many insurance policies contain a protective safeguards endorsement that requires you maintain the sprinkler system. If your policy has this provision, be sure to review the conditions related to impairing any protection. Building Temperature for Dry Pipe Valve Enclosures The dry pipe valve has water on one side of the valve body and this valve enclosure must be maintained at 40 degrees F to protect the valve. Check the heating systems for the dry pipe valve enclosure for proper operation and perform any needed maintenance or repair. Add a low building temperature sensor to the valve enclosure. It is an economical way to avoid a significant freeze damage event. If the enclosure is alarmed, it can be inspected weekly. If no low temperature alarms are present, a daily inspection is needed. The use of heat tracing on sprinkler systems is limited to systems that are specifically UL listed for use on fire sprinkler systems and that can be supervised to confirm the system is energized. Auxiliary Drains on Dry Pipe Sprinkler Systems Any area of the dry sprinkler system that does not drain back to the riser will trap water and be subject to freezing. There are auxiliary drains for these areas and the drains on a dry pipe system are equipped with a drum drip. This piping should be drained after any system test or activation and when cold weather is imminent. Part of the annual inspection should be identifying any areas that may trap water. Failure to do so can result in frozen pipes and water damage. When a drum drip is in “normal” position, the top 1” valve (A) is open, allowing moisture to enter the condensate nipple, while the bottom 1” valve (C) is closed. To drain the condensate nipple (B), the top valve is closed then the bottom valve is opened to remove accumulated moisture. When preparing for freezing temperatures, the auxiliary drains should be operated daily with the frequency of operation decreasing, depending on the discharge of accumulated water. Quick opening devices where present, should be temporarily removed from service prior to draining the system Low Points. Maintaining the low point drains and using the drum drips to remove water is the owner's responsibility. This should be part of your preventative maintenance program and documented to show it was performed. If you do not know how to do this or where the low point drains are for your system, you may causes a significant water loss. Participate in the inspection and maintenance program with your sprinkler contractor to learn these critical skills and information. The Driehaus Difference Fire sprinkler systems provide the best protection for property and life safety. To be effective the systems must be properly maintained. Part of that maintenance is preparing the systems for winter weather. We can help you identify potential protection issues and work with you and your insurer to get the best protection and insurance rates for your property. Call us at 513-977-6860 or reach out to us on the internet at www.driehausins.com

Social media and new programs are full of stories about the personal lines insurance marketplace. Most of these articles and posts blame insurance companies for the ” problem”. Our experience is that insurance companies want to write business and want that business to be a good bet.  Getting the carriers to see you as a good bet means you have to take the process under your control.  You can avoid the pain.   I Don’t Know! How old is the roof? What wind uplift specifications were used? What is the brand and style of roof covering? Did you retain copies of the installation paperwork and warranty?    Continue this series of questions around every major system in your home. Plumbing, electrical, HVAC, doors and windows. All of these systems can either be the cause or the cure of property loss. Not having answers means the insurance carrier will fill in the blanks using the answers that generate the highest possible premium. They can’t be wrong if they assess the highest charge for the missing data. The Values are Ridiculous! Many homeowners want to dispute the values shown on their homeowners’ policy. Since they can’t sell the home at that value, or they paid much less the costs used by the insurance company must be wrong. See our article on values  to look behind the curtain.   To dispute the values, you need accurate information. What is the age of the home?  What is the construction type? How many square feet? What percentage of the home is finished space? What is the shape of the home’s foundations? How many stories? What is the level of interior finish and the quality of built in appliances? All of these have an impact on the valuation of a piece of property. Insurers use third party data for most of their valuations. They use these tools because most homeowners do not provide enough information. If your home is overvalued, the company gets more premium and has lower exposure. Lack of information is costly. Loss History Homeowners’ insurance is not a warranty program or a maintenance program. Carrying a low deductible and reporting minor claims will drive your costs up. The insurance industry is a firm believer in “Frequency breeds severity”. If your loss history shows frequent small claims, you will pay up when you renew. Bundle and Save Virtually every insurance company offers discounts for multi-policy customers. While this is a source of price relief it means that a poor driving record, youthful drivers, high performance cars can adversely impact your property and liability insurance.  What is the discount and is it worth the pain of a higher auto premium if one is available from another carrier at lower cost? If your bundle includes a personal umbrella, be sure that both the homeowners’ and auto policies have sufficient limits and are with carriers that are acceptable to the umbrella insurer. The Driehaus Difference OMG this is complicated ! — Yes, it is. We do not subscribe to the notion that “15 minutes will save you 15%” or believe that everyone has the expertise to “pay for only what you need”. Shortcomings in your insurance program become obvious when the chips are down. You need an insurance agent that understands the data needed to secure the best program for you. You need an insurance agent that will ask the questions and help you find the answers. This is not a call center or an online quoting tool. Call us at 513-977-6860 or use the contact tools on our website, www.driehauins.com , to get in touch with us. We want to be your insurance provider.

We Have a Great Opportunity. With the holidays quickly closing in I have a hard deadline to meet. My client needed his insurance program put together and bound by Thanksgiving. After that he was too busy to discuss insurance. Named Insured was Santa Claus. I still need to determine the type of entity we need to insure. Is this an LLC, C Corp, or a partnership? If other entities are involved, we need all the details for the correct named insureds. Property coverage is for a workshop / office / transportation hub at the North Pole. Given the scope of manufacturing described this would be a significant property exposure. There may be a wide range of special hazards and the need for special extinguishing systems. Given the location at the North Pole we need details on building construction and heating system. High winds may make a roof review important. How accessible is this location? The risk described his primary transportation as a sleigh. Is the fire department available to respond? Construction class, building size and private protection would be important. Contents coverage will be a challenge to quantify. There seems to a steady buildup of values until late December when the inventory is suddenly depleted. Perhaps a reporting form with a peak season endorsement is needed. Storage arrays and protection will be critical to understand. Business income is a head scratcher. Santa says he does not sell the goods but gives them away. Somehow there must be an income stream to pay for this. We need to do some serious research to define the incoming revenues to define the business income limit and exposure. Give the remote location, I expect that a mechanical breakdown policy is needed for heating, power generation and other utilities. The risk has a data center of some sort, so coverage for those equipment exposures is needed. The general liability is different. Santa maintains that there are few if any visitors to his homebase. He travels extensively and meets his clients in retail settings during the last quarter of the year. He has a staff that lives on site called the “elves”. The “elves” manufacture the products that Santa distributes. We may have some type of residential habitational exposure to consider. The potential products list looks like an old Sears catalog. Products liability will be tough to place. The scope of the products is soup to nuts. The target customers are children, so we have a very sympathetic plaintiff. How the “elves” turn out so wide a range of products is unknown. We may have a significant distribution only exposure if Santa gets merchandise from others and simply delivers the goods. How much is delivered or drop shipped is an open question. Santa will need a good fleet policy to cover his delivery operations. I suspect there are at least eight power units. I could not find “Rudolph” in SAFER, so perhaps a DOT number would help with fleet underwriting. He was very proud of this part of his operation and all delivery operations may be very time compressed. What about driver fatigue and hours of service? The radius of operation of the deliveries is said to be worldwide. If this is true then, we need an ocean marine policy for the goods in transit overseas. Perhaps an ocean marine throughput policy may be best to package the real property at the North Pole and the goods in transit across the globe. If there are more delivery outlets than Rudolph, we need to consider transit coverage or verifying that carriers have adequate limits for their motor truck cargo legal liability. Santa says he delivers the goods and installs some of them. He mentioned something about chimneys, but I must have misunderstood him. All we need is a work at elevation exposure to scare off potential carriers. Depending on the installation work being performed, is an installation floater required? WC coverage is reported to be needed in all states. We may need to manage the four monopolistic states and getting the remainder covered will require a carrier with a lot of WC reach. I was not clear if the international workforce who delivers is our own staff or subcontractors. If subs, we need to do the employment test to verify that WC does not apply. We should ask for an NCCI EMR worksheet. Cyber is a big issue for this risk. Santa reports that he maintains a list of all the children and separates them into good and bad categories. This suggests a lot of PII around children and we need to have strong cyber controls. It was not clear of the data is maintained at the North Pole or in a cloud. Would the separation be a source of potential discrimination claims? I only got bits and pieces of this operation over the open bar at the Chamber luncheon. I am trying to get back in front of the client this week to start gathering data. This could be a big revenue account. The Driehaus Difference We want everyone to enjoy their holidays. We share these safety tips and suggestions so you can have the best experience and with the least risk. Call us with your insurance questions or needs. We look forward to hearing from you Call us at 513-977-686 0 or contact us via our website, driehausins.com  to discuss your needs. We want to be your insurance provider.

Most businesses have cyber security protection for their laptops and desktop computers. There are two points of entry into your network that may not get the attention they deserve. Copiers and Printers A common office machine that can print, scan copy and fax is extremely useful. This machine can be shared by multiple users, including remote users. It can stage multiple print jobs and have a print queue when it is busy. The connection to a network and internal data storage make this a workhorse in the office. These features strongly resemble a computer, but many cyber security plans do not treat copiers as a threat. Network Connections If your copier is shared by multiple users and is not connected by dedicated printer cables, it must be connected to your network. As a network point, it has the ability to send and receive data to you. This ability can be exploited if the network connection is not protected with a security system and if access is not controlled. Leaving the printer open for guests to print opens your network to those guests. With WI-FI being the preferred network connection, your WI FI can be accessed outside of your premises by a hacker. You should treat the printer as a workstation and require the same level of access control for this tool as you would a workstation. If you allow guests to use your printer, enforce guest passwords that change routine to maintain an acceptable level of security. Be sure USB connections to the printer are scanned for malware and viruses before allowing use. Conference Room Presentation Systems The convenience of simply plugging in and projecting data is another often-overlooked cyber threat. Instead of a single user connecting directly to the screen with a cable, a network connected device allows easy screen sharing and multiple users to share upon demand. This means the system is connected to your network and can send and receive data. The same issues with your copier also impact on a network connected screen sharing system. Some standalone projectors have onboard memory to allow a presentation to be loaded or a streaming service to buffer to allow a more stable experience. This data will remain onboard the device unless you proactively remove the data. The next user can access your data. This is a particular exposure for shared conference rooms. Projection options that accept a USB flash drive also have the potential to load malware into your system. Strict controls on USB ports should be part of your cyber security program. Requiring the USB drive to be scanned by your security software before use is sound security control. No Good Deed Goes Unpunished When your technology reaches the end of its useful life in your environment, it may be a working tool for someone else. You may also want to avoid the environmental aspects of technology disposal. Donating equipment to non-profits, schools and other groups seems to be a good deed. Any equipment that leaves your control must be cleared of any data. Do not rely on the “format” commands to clear memory devices. There are commonly available utility programs designed to recover data on storage devices. Many security software platforms offer data destruction or shredding programs. These programs rewrite the storage media with random data that prevents retrieval of your data. Your current security software likely has this function. Use it on all equipment moving to another home. This includes equipment you may sell or give to employees. Cyber Liability is Real If a customer’s data is compromised by a security breach or lapse at your company, you can be held liable for damage. The damage can be to real property by malware or reputational damage from data release. You may be required to offer identity theft protection and credit monitoring to affected people and businesses. You need adequate insurance coverage for this exposure. Cyber threats are no longer limited to big business. Anyone with an internet connection is at risk. A major cyber liability broker, AMWINS, estimates the average ransomware attacks costs a small business $262,000 excluding ramson payment. The average social engineering attack costs over $123,000. The Driehaus Difference We have multiple cyber liability options for any business. Our companies can offer limits that will meet your needs. Cyber policies offer restoration and response services to help you manage a cyber incident and limit downstream damage. This service is worth the cost of the coverage. We can help you with your cyber liability exposure and coverage. Call us at 513-977-6860 or reach out to use on our website, www.driehausins.com We want to be your insurance provider.

With the start of the holiday season there are safety and risk management considerations that will prevent you getting a lump of coal in your risk management stocking.   Lighted decorations  Everyone enjoys a festive light display. If you are creating your light show, keep these safety issues in mind. The lights you use should be UL listed for the location of use. Check to see that your lights are listed for outdoor use. Many low-cost lighting products that are not UL listed appear every year in stores and online. This is a buyer beware situation. See our article on Product Listings for more information Look for electrical devices listed as waterproof or suitable for wet locations. When attaching lights or other decorations to the building, remember to “Do No Harm.” There are clips and brackets that allow attachment of decorations to gutters and roofs that will not create a leak or damage the integrity of the roof covering. If you are working at heights to attach decorations, use the proper ladder and set it up properly. If the outlet for your decorations is not already Ground Fault Circuit Interrupter (GFCI) protected, add a portable GFCI to the circuit. Keep the plugs and connections dry and off the ground. This will keep the GFCI from tripping.   Holiday Parties You can take simple precautions to assure a happy ending to your celebrations. See our article on liquor liability  for more information. Christmas Trees  If you use a natural tree, make sure to follow these guidelines for safety. If you have never seen a dry Christmas tree fire, they are devasting. This video from the National Fire Protection Association is a great safety review. Christmas Tree Fire Safety Cut the base of the tree to expose fresh wood. This will allow the tree to absorb water. Keep the tree base in fresh water at all times. Refresh the water daily. Secure the tree in a stand to prevent tipping or falling. If the tree starts dropping needles, it is too dry and should be removed. Candles Candle fire frequency peaks in December. The NFPA  reports 12% of fires in December are related to candles versus 4% in other months. Candles should be used only when you are present to monitor and supervise. Do not let candles burn unattended. Use a sturdy candle holder that will not tip over. Keep candles at least 12 inches from any combustible material. Consider using flameless candles. They look and smell like the real thing.   Cooking Cooking is the leading cause of fires in homes. We had a prior article on cooking safety that offers  guidance. If you choose to deep fry your turkey, please take these precautions. Deep frying turkeys should be done outside the building. The deep fryer should be on a noncombustible surface. Test the level of oil needed before heating. A boil over can create a severe hazard. Have a fire extinguisher available for an emergency. Keep children away from the fryer. The Driehaus Difference We want everyone to enjoy their holidays. We share these safety tips and suggestions so you can have the best experience and with the least risk. Call us with your insurance questions or needs. We look forward to hearing from you by phone at 513-977-6860 or on the internet at www.driehausins.com

Your insurance company may request that Verisk, formerly ISO, come out to your property and conduct a survey to establish the base loss costs for your property. While many carriers say they do not use the Verisk loss costs, they do use the data collected during this process. Inaccurate data can lead to incorrect construction classifications and no sprinkler credits given. This information will persist until another insurance company orders and pays for a new survey. Your property insurance premiums can be affected by the bad information for years. Preparing for a Verisk Rate Survey Verisk will call and request an appointment. If you do not return the call or schedule the appointment, they will cancel the survey. The requesting company will be notified that you declined to schedule the survey. This may not be in your best interest. When the representative arrives, it is essential that you have the right materials immediately at hand. The following should be assembled for review by the Verisk representative. Have all materials ready to show to the representative. Building Construction Documentation Code Summary Page from the construction drawings – Will have square footage, construction type and indication of fire resistance ratings on structural members If you do not have building plans, have this information assembled and ready to share If built in stages, have ages of each addition, square footage of each Site plan showing building, and underground water supply for sprinklers Exterior wall construction – materials and cut sheets for siding or other cladding materials besides masonry or wood. Is the exterior cladding combustible? Roof structural supports and roof covering – cut sheet on roofing materials – any fire resistance rating for the roof structure or covering? Floor construction – any fire rated construction on floor/ceiling assemblies? Vertical openings – fire ratings on any vertical opening shafts and doors Diagram showing location of fire rated walls. Can reduce ratable area of building. Details on wall construction, door ratings – identify if fire walls terminate against noncombustible or masonry ceilings. Is the attic space combustible? Any use besides joist channels? If so, are the sprinklers installed? Is the attic area subdivided in any fashion. Any interior finishes that would be considered combustible finishes? Sprinkler System Documentation Copy of sprinkler system plans – including specific data on the sprinkler heads used Copy of hydraulic calculations including water supply data Be sure the placard is up to date on the riser Fire department connection provided, caps in place Documented water flow alarm – local if not monitored by remote station or better alarm service Copy of Underground Testing and Flushing certificate Copy of Aboveground testing certificate 2” drain test results – have tags on the riser or hard copy inspection reports Documentation of any five-year testing done on your sprinkler system Why bother with all of this? Insurance is driven by data. If you do not provide the correct information when given the chance, the default values used by the insurance industry are values that generate the highest premiums. Verisk loss costs may not be the basis of your rate, but the data gathered during this process is used across the industry. Having your noncombustible building rated as frame from lack of information about the insulated panels will persist and cost you money. Lack of sprinkler system information will have your building listed as being non-sprinklered. Having the right information ready for the representative of Verisk will prevent this from happening. The Driehaus Difference We clearly understand this process and how to get the best result for our clients. We have helped numerous clients correct data errors and allow them to reap the benefits of accurate property rating information. This is more than just shopping your insurance program. It is managing your insurance program. Call 513-977-6860 or reach us via our website, www.driehausins.com . We want to be your insurance provider.

The OSHA standard for Hazard Communication - 1910.1200 entered the business world in 1983 for manufacturing and was expanded to all industries in 1987. The standard was updated in 2012 and again in 2024 to align the OSHA standard with a Globally Harmonized System of Classification and Labeling (GHS). The term Materials Safety Data Sheet (MSDS) was replaced with the Safety Data Sheet (SDS).   How Hazard Communication Works The fundamental elements of the standard require that the employer conduct an inventory of chemicals in the workplace and document the hazards related to those chemicals. The standard called for all containers to be labeled with hazard information and that all employees be trained in the hazard recognition process in use. Employees were also to have access to the MSDS for chemicals in use at their workplace. The chemical industry originally developed MSDS sheets to meet this standard. The difficulty was that no consistent standard existed for the MSDS. While the standard required certain information, the placement of that information was inconsistent. This made the use of MSDS in an emergency a challenge.   Labeling was a second challenge. You could not attach a multi-page MSDS to each container, so a number of systems evolved for numerical hazard ratings. While the systems looked alike, the definitions of the hazard ratings were inconsistent. . Global Harmonization In 2012 OSHA agreed to adopt GHS as the basis for hazard communication. The GHS had a standard for communicating hazard s and their SDS sheets became the required tool. The SDS has 16 sections. 1.   Identification:  Includes the chemical name, recommended uses, and supplier contact information.  2. Hazard(s) identification : Describes the hazards of the chemical, including physical hazards, health hazards, and environmental hazards, along with warning information.  3. Composition/information on ingredients : Lists the ingredients of the chemical, their concentrations, and other relevant information.  4. First-aid measures : Provides guidance on what to do if someone is exposed to the chemical, including first aid procedures.  5. Firefighting measures:  Details on how to extinguish fires involving the chemical and what hazards might be present.  6. Accidental release measures:  Outlines procedures for dealing with spills or leaks, including containment and cleanup methods.  7. Handling and storage:  Provides instructions on how to handle and store the chemical safely, including precautions for safe handling and storage.  8. Exposure controls/personal protection:  Specifies exposure limits, engineering controls, and personal protective equipment (PPE) required to minimize exposure to the chemical.  9. Physical and chemical properties : Describes the physical and chemical characteristics of the chemical, such as boiling point, melting point, and solubility.  10. Stability and reactivity:  Explains the stability of the chemical and what conditions or substances might cause it to react dangerously.  11. Toxicological information:  Provides information about the health effects of exposure to the chemical, including routes of exposure, acute and chronic health effects, and other toxicological data.  12. Ecological information:  Describes the environmental impact of the chemical, including its potential to harm the environment and guidance on how to minimize its environmental impact.  13. Disposal considerations:  Provides information on how to properly dispose of the chemical and any associated waste.  14. Transport information:  Includes information relevant to the transportation of the chemical, such as hazard class, packing group, and other transport regulations.  15. Regulatory information : Lists any regulatory requirements that apply to the chemical, such as environmental regulations or other safety regulations.  16. Other information : Includes any other relevant information about the chemical, such as the date of preparation or revision of the SDS.    Why is this Important? Beyond the regulatory requirements, SDS sheets can be invaluable in employee safety and health. By clearly identifying the health and safety impacts of chemicals, the employer and employees can make informed choices. The data being in a consistent format allows immediate retrieval of needed facts in an emergency. The use of standard warning words and pictograms allow faster recognition of hazards. The Driehaus Difference We can help our clients build an effective Hazard Communication program. Involving both insurance carriers’ resources as well as OSHA resources to bring clarity to an issue that is effective at improving safety is a positive outcome for all involved. We want to help you solve risk management questions and be your insurance provider. Call us at 513-977-6860 or contact us on the internet at www.driehausins.com