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What can your car tell me about you? Uses of Telematics Telematics is a powerful tool for managing fleet safety and vehicle maintenance. By measuring speed, braking, cornering and use of connected electronics while you drive a “ score” can be developed to indicate your relative safety as a driver. There is substantial research that use of driver behavior monitoring is a valid tool for risk reduction. Telematics in the transportation industry delivered positive returns on investment. Fleet operating costs were controlled by reducing extra trips and lowering maintenance costs from hard driving maneuvers. The safety improvements by monitoring driver behavior have proven to be a significant risk reduction tool. Parents can use telematics to monitor youthful drivers. Information on driving behaviors, trips and driver distractions can be a powerful tool in managing a young driver. The Technology The technology has also evolved. The original fleet telematics applications required installation of additional hardware and communication equipment. The next generation used the diagnostic port on your vehicle and sent data using the drivers’ cell phone or open wi-fi networks. The most recent versions use an app installed on the driver’s smart phone and a tag to link the phone to the vehicle. Each improvement in technology has lowered the cost of implementation. Apps are available to download from the Google Play store or Apple App Store. Telematics is a proven way to improve efficiency and safety for automobile operations. Any company or family should consider the benefits of this technology. Insurance and Telematics - What's In It For Me (WIFM) The insurance industry has taken notice of this technology and now promotes using this technology. Insurers want to monitor your driving habits and use this data to rate your policy. These programs were introduced as discount programs so safe driving would earn you a premium reduction. The insurance company also has its own WIFM calculation. It can verify both driving behavior and rating information using telematics. Insurance carriers believe that if the vehicles were properly rated for radius, use and garaging location, the auto line of business would be profitable. The telematics data can confirm all of the rating data. This includes miles driven, the location data confirms radius of operation. Telematics can also verify garage locations. The obvious payoff for the insurer is reducing collecting the correct premium and reducing losses. The latest application of this technology is “pay per mile” insurance coverage. You are charged only for the miles you drive. Most of these programs include a daily charge plus the per mile charges. The daily charge is assessed every day, not just when you drive. Other programs have a flat base rate and then mileage charges. If you truly drive a few miles, this may be of benefit. To access these programs, you must participate in some form of vehicle monitoring. Ironically, the increased cost of vehicle systems that allow telematics to work also increase repair costs. So, while accident frequency may be lowered, the cost per accident is trending upward. With lowered premium from discounts for telematics use, the bottom-line impact may be muted. This is driving the shift to premium increases being applied for poor driving scores. Telematics is no longer a discount only program. Check your carrier to verify terms and conditions. WIFM for consumers The most common incentive is the insurer offers a discount for your participation in the telematics program. Review the program rules as some programs can increase your costs if your driving behaviors fall outside of the program defined “safe” guidelines. What was once a pure discount tool is evolving into a rating tool. Be sure to read the terms and conditions carefully before you enroll. Read Before You Sign! Big Data Your insurance carrier is developing a rich database about your life, not just driving. Location data from the telematics device can tell where you were and how long you stayed there. This is rich data for marketing purposes. I turned on Google location services as a test and was routinely solicited for reviews and information about places my phone visited. Telematic systems gather the same data and much more. A review of one terms and conditions agreement for a driver monitoring program indicates that the insurer can monitor and collect data on time of day, driving location, distractions (cell phone use), speed, acceleration, braking and the use of other applications (music or video streaming) while the vehicle is in motion. The data collected is owned by the insurer and can be used as the insurer sees fit. It can be shared in accordance with the insurer’s privacy notice, another document that governs your relationship with the insurer that you probably have not read. One of the early adopters of this technology has since split off the technology company into a separate firm to make use of this the data. Your Choice You need to make the value judgment of privacy versus discounts. How much information you want to share with the insurer and their third-party partners is a consideration. The inherent return on investment for telematics is a solid number. It can be a powerful safety and risk management tool that can benefit you and have a positive return on investment without sharing your data with anyone else. The Driehaus Difference Driehaus Insurance Group can help you with identifying telematics programs for commercial and personal insurance programs. Reach out to us at 513-977-6860 or on the internet at www.driehausins.com .

It has been said that unless you understand history, you will repeat it. That proves true with loss experience. Lack of understanding and addressing trends mean they continue. Good risk management can stop this cycle and reduce your losses. Loss Ratio The most basic analysis is the loss ratio. This is the ratio between the incurred losses by the insurance carrier and the premium you pay for that coverage. Incurred losses include paid dollars, expenses and any reserves that are assigned to that claim. If your incurred losses are $50,000 and the premium for that line of business is $75,000, you would have a 66% loss ratio. As a rule of thumb, for standard market business, loss ratios over 55% are borderline unprofitable for the insurance company. Frequency / Severity The second level of loss analysis assigns a loss cause or loss type to each claim. By sorting on this factor you can calculate the frequency of losses. How many of each loss type as a percentage of the total losses You can also calculate severity,  the percentage of loss dollars associated with each loss type or cause. This will identify the loss types that occur most often and the most expensive loss types. The most frequent event is not always the severity driver. One truism in the insurance world is that frequency leads to severity. My analogy is playing the slots. You keep pulling then handle for small returns or losses hoping to hit it big. Numerous small losses may lead up to a very expensive event. Secondary Factors Once you have this first layer of data in hand you can enhance your efforts by using secondary factors that would allow greater drilling down. Some good secondary analysis points may include: Location if you have multiple locations Time of day Day of the week Department if applicable Body part, arm, leg, wrist, back, etc. Accident site – limited access highway, major street, residential area, parking lot   Other useful calculations can be ratios based on the following data points: Hours worked / number of employees Revenue or sales Miles driven Units sold for product liability Benchmarking Another level of loss analysis can be benchmarking your results against known standards. One common loss benchmarking is using your OSHA 300 data to calculate an accident incident rate for total cases and lost time cases. There is an online tool, https://data.bls.gov/iirc/ , to compare your data to national averages.   Other sources of benchmarking data can be National Safety Council Accident Facts, DOT crash data, Consumer Product Safety investigations and industry group publications. We used Consumer Product Safety playground accident frequency data to compare playground injuries at a client’s facilities to the national average. We had recommended playground safety surface improvements, and the current accident frequency was similar to the incident rate that prompted the CPSC playground guidelines. Loss analysis supported the recommendation to improve the safety surfaces. Data outside insurance loss runs Understanding the structure of the insurance program can influence the source of your loss data. If there is a large deductible or Self-Insured Retention for a given line of business, you need to find the data for events that are not included in insurance company loss runs.   Look for accounting ledgers for uninsured losses, warranty payments, courtesy payments. For non-monetary events look for incident reports, customer complaints or exception reports from processes. These “near miss” events can be trended to identify potential loss causes that have not appeared on the insurance records. Available tools All of this can be accomplished within Excel. Using the graphing functions will allow display of the data for visual management systems. Follow up You can examine controls that would affect the frequency or severity drivers.  Knowing the current frequency and severity data will allow you to repeat the loss analysis at a later date to assess if the implementation of the controls is effective. The Driehaus Difference We recognize the impact of effective loss analysis on improving your business results. We use this data to highlight your initiative-taking efforts to potential insurance carriers to help secure the best possible terms for your insurance program. We help you get started on this process and help you with managing the information to leverage control improvements. Realizing the goal of accident reduction will often translate into premium savings or program enhancement. We want to be your insurance provider and risk management consultant. Call us at 513-977-6860 or contact us on the internet at www.driehausins.com

The recent increase in home values on the market has many homeowners looking at the value of their homes. One of the most important decisions to be made concerning your property insurance is the values that you set for the insurance policy. This is a topic that is challenging because some of the parties requiring insurance only require limits to protect their interests, not your interests. The question you need to ask yourself is straightforward. What amount of money do I expect to recover in event of a loss? The best place to begin is to define the most common valuations. Replacement Cost - RC This is the cost to replace the property with like kind and quality, with no regard to depreciation. What would it cost to rebuild the building from scratch with new materials? This seems like an easy question to answer until you factor in issues such as historic trim, any restrictions on the building by local zoning or historic commissions or your desire to replicate certain architectural features that are hard to replace or replicate. If your property has unique features, materials or intricate workmanship, you need to consider these in setting its value. For contents be sure to consider fine arts and collectibles separately. A standard property policy would replace the frame and a blank canvas, not the artwork. You need a fine arts floater for this exposure. Replacement cost coverage is required for Fannie Mae and Freddie Mac mortgages. Lack of replacement cost coverage can be an impediment to securing or refinancing a mortgage. Functional Replacement Cost Some carriers will offer functional replacement cost for a building they deem to be obsolete. If you have an older home or property, you may find this being offered. It essentially means that the insurer will replace damaged property with materials that are similar in function, but not like kind and quality of the original materials. With a partial loss this can mean loss of matching materials and a repair that is obvious. For a total loss your building would be replaced with the same area, but the construction materials may be very different. Selling Price This is easy – what did you pay for the property? If the property is used to secure a loan, the lender may require insurance at a limit that equals their interest in the property. If you are getting a good deal on the property, the selling price may be less than the replacement cost. The lender’s interest is protected, but you may have a gap. Most mortgages have provisions for the owner to carry replacement cost coverage, but the primary interest of the lender is that the value is high enough to protect their interests. Market Price Price of similar properties that are being sold to a willing buyer. Market price can be influenced by economic times, location, style of the property and other features that make the property easier or more difficult to sell. During an upswing in property prices, the market prices can be inflated by demand. Conversely in a period of lower demand, you may be able to buy a property for less than expected. Market price is more volatile than other valuations. The recent hot real estate market has inflated purchase prices. Actual Cash Value - ACV This is the value of your property adjusted for depreciation. Age, condition and upkeep all factor into this value. There are two variables, the starting point of the valuation, and the amount of depreciation applied. To understand this process, you must know both variables. The degree of maintenance and upkeep of the property can influence the depreciation. Some insurers apply a straight line depreciation that leaves older properties with limits that could be lower than expected. this valuation can also be applied to parts of your building such as the roof. For property with insurability concerns, ACV may be the only terms offered. ACV is also being used by some insurers for roof coverage when they feel the roof is old or not in good condition. ACV can be an issue if you are using Fannie or Freddie as your mortgage source. You may find that the mortgage holder will not accept any ACV coverage on the property they have a loan against. Reconstruction Cost This is a favorite of insurance companies. Since most property losses are partial losses, the cost to repair is matching new to old. If you have ever remodeled a room, you know that getting new cabinets to match up to existing walls and ceilings can be a time-consuming process. Many property insurers use this value as the default on the value estimators provided to their agents. This often becomes the replacement cost figure on your policy. It can be up to 30% higher than new construction costs. What is the right number? What do you need to recover? Lower valuations may save money on premiums, but if the amount you recover at time of loss is lessened by the valuation, it was probably not the best decision. The Driehaus Difference You are our customer. We want to understand your needs. If we and you both have a clear understanding of expectations, we can help you select the right values for your policy. This is not a process that can be done with an online chatbot or a scripted phone call. Reach out to us at 513-977-6860 or via www.driehausins.com to get a professional insurance consultation.

As summer arrives the season for road trips is upon us. As you plan your trip, take a few moments, and consider whether your vehicle is ready for the trip. Tires should be inspected for proper tread depth and inflation. If you have tires with slow leaks, have them repaired before you are stranded alongside the road. Tires that have bulges in the sidewalls or cracks visible should be replaced. Check your spare tire, jack and tire iron are ready. Take a moment to review the directions for use and proper jack placement. Check all of your fluids. Have the fluids been changed recently, and would a change be required on your trip? It is easier to do the fluid maintenance before you leave instead of trying to find a vendor along the road. Check the condition of your belts and hoses. It is easier to replace them now than have a breakdown. Check your cooling system and flush the system if it is due for this service. Check your air filter and change if needed. Have you changed your cabin air filter? If you are going to be in the car for a long trip, having fresh filtered air is refreshing. Check all lights, including headlights, taillights, turn signals and emergency flashers. Refill your windshield washer reservoir. Have some window cleaner and towels in your car for bug storm removal. Check for paperwork, registration, insurance card and any roadside assistance numbers. Do you have an atlas or paper map? If GPS or cell service is not available, you need a second method of navigation. Use this as a teaching moment for those who have not used maps. Clean out your car so you can find everything quickly. Put a trash bag in the car to collect debris as you travel. Plan your routes to allow for adequate rest periods. Fatigued driving can ruin your vacation. Vacations are exciting and you should be prepared for the unexpected. Having a first aid kit, fire extinguisher and other breakdown supplies in the car can relieve the uncertainty of the trip. Other planning steps beyond the vehicle... When you leave town ask if your police department can do vacation checks on your home. Many agencies offer this service, and it can help secure your property against burglary. You can use timers to turn some lights on and off while you are away. With smart home technology, you can do this with your smartphone. Check any alarm system for proper operation and verify the contact numbers for your alarm system. Is there an alternate keyholder that can respond if needed? Consider turning off your main water valve when you leave home. This would prevent a plumbing failure from flooding your home while you are away. The Driehaus Difference You work hard and need a good vacation to relax and recharge your energy. We work to protect you from the unexpected with an expertly crafted insurance program. Reach out to us at 513-977-6860 to discuss your needs or ask us a question. You can also use our website, www.driehausins.com  to contact us at any time. We want to be your insurance provider.

Outdoor cooking safety Outdoor cooking and equipment have evolved into equipment that is more complex than the charcoal grill I grew up with. As the equipment type, fuels used and size and scope of the installation have grown, there is a need for better understanding of the risks presented and how to control the hazards. Fuel Types and related hazards are the first consideration for outdoor cooking Fuels can be broadly grouped into two classes, Gas fire equipment and solid fuel equipment. Both types generate carbon monoxide (CO) and should only be used in an outside environment or in properly ventilated areas with an appropriate chimney or vent system.   Gas fired equipment is supplied with LP (propane) or natural gas. Both are flammable gases with the major difference being that LP is heavier than air and will accumulate in low lying areas while natural gas is lighter than air and more easily dissipates. Natural gas can be trapped by structure and accumulate in this fashion.   Both types of gas are ready to ignite with a low energy spark or ignition source. This makes then easy to use and also easy to create a fire hazard.   Since LP gas is often supplied in portable containers, there are guidelines around storage and maximum quantity allowed in a building. Natural gas is piped into the building and all gas fittings and piping should be installed by a qualified gas fitter.   Solid fuels can be charcoal, wood pellets, or wood in log form.   These fuels are not inherently dangerous and require a significant energy source to ignite. The most prominent hazard is the generation of ash products that must be safely removed. Hot ashes that are improperly disposed of are the source of many structure fires.   A less common fuel is electric powered equipment. The hazard from the heating is the same with the other fuels, but there is an added exposure to electrocution and short circuits that must be considered. Equipment Purchasing Outdoor cooking equipment has a wide range of products and price ranges. When you are looking to buy equipment the first question should be if that equipment has a UL listing for the type of equipment being purchased.   Outdoor Cooking Gas Appliances — should have a listing that indicates compliance with ANSI Z21.58. This voluntary standard has safety provisions to address the hazards pres4ented by the use of a flammable gas as fuel. Outdoor Decorative Gas Appliances — (AKA Fire pits) have their own standard for safety, ANSO Z21.97. Equipment that complies with this standard can be identified with a UL listing for this device. Charcoal Equipment — does not have its own ANSI standard, but there are portions of the ANSI Z21.58 standard that can be applied to charcoal grills. Wood Pellet Grills — have heat and ash hazard as well as electrical hazards and mechanical hazards related to the pellet delivery auger. There is a recently issued UL standard that addresses this type of equipment. UL 2728A  These requirements apply to forced or natural draft, automatic feed, pellet fuel-burning cooking appliances rated 120 V or less for residential use and 250 V or less for commercial use. Electric Barbeques — are another popular option for outdoor chefs.  IEC 60335-2-78 Ed. 2.2 b:2019 , Household and similar electrical appliances - Safety - Part 2-78: Particular requirements for outdoor barbecues, deals with the safety of electric outdoor barbeques with a rated voltage being not more than 250V. Beyond this standard for the devices, there are National Electric Code (NEC) rules on proper power supply, ground fault protection and wiring specifications that should be followed by a qualified electrician making the installation. Installation of equipment All of the equipment has specific installation requirements that should be followed. They are found in the owner manual or installation documentation from the manufacturer. It is best practice to review this before you buy to ensure that you can accommodate the installation requirements. There may be permits required for gas piping, plumbing and electrical connections for your new kitchen. Be sure to secure these permits and the associated inspection reports.   The proper clearance of combustibles is found in the installation guidelines for every product. These distances can vary widely from manufacturer to manufacturer of the same equipment. Combustibles are exterior building surfaces, flooring under the appliance and vegetation near the equipment.   In addition to clearance to combustibles there can be clearance requirements for gas meters, electrical meters, and electrical panels.   Locations related to ventilation can be specific to distance from windows and any fresh air intake for your HVAC system to prevent carbon monoxide from entering the building. Maintenance and use All outdoor cooking and fuel burning equipment requires routine maintenance to function properly. Some equipment is not appropriate for use in rain or snow. Others have wind speed limitations to prevent the flame from being influenced by the wind.   If you are in a multifamily occupancy, verify that use of open flame cooking appliances is permitted. Many homeowners’ association restrict the use of this equipment as a fire safety measure. Most multi story, multi family structures have restrictions on use of these devices as well as limitations on LP fuel quantity permitted in the building. In areas subject to freezing temperatures, be sure to properly winterize any part of your kitchen subject to freezing damage. Be sure the water connection to the building is via a frost proof connection. Insurance considerations If you have added an outdoor kitchen to your property, have you added the values to your policy? Most valuation tools would not catch this addition and you could be faced with claim handling difficulty if a large value has not been included in your policy.   Being sure that your equipment meets the appropriate standards, the installation and maintenance and use are consistent with the manufacturer’s information will offer you protection against claims related to negligence in the event of a claim. Compliance also reduces the chance an insurer can deny coverage based on a poor installation or poor-quality equipment that presented an unknown or uncontrolled hazard. The Driehaus Difference We enjoy a good barbeque as much as anyone and some of our staff are surprisingly good pitmasters. We also consider ourselves to have advanced skills in controlling risk and helping our clients make the most of their outdoor spaces. We ask that you call us at 513-977-6860 or contact us via our website www.driehasuins.com  for any questions or assistance. We want to be your insurance provider.

What You Need to Know about Insuring a Classic Car What makes a car classic? Age – many vehicles over 25 years old are considered classic. Since at 25 years old a stock vehicle has been fully depreciated, you need a different insurance product to recognize the value of this older vehicle. Make / Model – If the manufacturer has significantly changed or discontinued the vehicle in question, it can be considered an instant classic. Recent examples may be Dodge Chargers and Challengers that are no longer being produced. Corvettes and other sports cars with specific models may make the car classic for a collector when the models change. These vehicles have values that defy standard depreciation schedules. Drive train – A high performance engine, transmission, and rear end set up can make a car classic by making most insurers reluctant to provide coverage. Since these modified vehicles may have potential racing use, they fall outside of the appetite for many insurance companies. Valuation on a highly modified vehicle falls outside the scope of many insurers guidelines. Customization – Hot rods, rat rods, and low riders are some of the various types of modified vehicles that defy conventional valuation tools. A vehicle with a mixture of frame and body parts from different manufacturers or years may also be difficult to pigeonhole in a specific make/model description. As a result, these vehicles may not be insurable under standard policy terms.  Why consider classic car insurance programs? Value recognition  – This is the most common reason for classic car insurance. If you enjoy watching car auctions on television, a 1970 Chevrolet Chevelle that brings $110,000 at auction would be virtually worthless with standard depreciation. Since the standard personal auto policy uses “Actual Cash Value” which is the depreciated value of the vehicle, as the basis for adjusting claims, the owner of this $110,000 vehicle could never get a settlement close to the sales price. Use of the vehicle  – A standard auto policy will assume the vehicle is used as a daily driver. Most classic and collectible cars are not daily drivers. The lower use is a significant factor in the cost of coverage. Loss adjustment  – At time of loss, a standard carrier may use a third-party inspection service to look at vehicle damage. This third-party inspector will not have the necessary experience and education to inspect, assess and adjust a claim for a classic or collectible vehicle.  Staff inspectors who look at daily drivers will also lack the experience needed for this type of vehicle inspection and damage assessment. Repair process  – The collectible or classic car will not be repaired at a body shop or repair center that is part of the national network used by insurance companies. Standard market body and paint shops are not prepared for the custom work and finishes that are on most classic and collectible vehicles. Repair parts  – Most auto insurance policies allow the use of aftermarket, remanufactured or salvaged parts if they are deemed “like kind and quality or equal fit and finish” by the insurance company.  Use of parts other than Original Equipment Manufacturer (OEM) may not be suitable for classic or collectible cars. If parts are not available, then restoration work to repair the original damaged parts or replicating those parts may be needed. Diminution of value  – The Carfax commercial hypes the diminution of value related to accident damage to a car. This is even more critical when work from a specific shop cannot not be replicated as that shop is no longer in business, or the parts for that vehicle are simply not available. Swapping out engine or drive line parts that disrupt the “numbers matching” status of a vehicle is not an issue standard insurance considers. For a classic car owner this may be a deal breaker.  Many standard insurance policies may exclude any diminution of value claims. What to look for in a classic car insurance program Valuation - The primary difference is that classic and collectible cars are written on the basis of agreed value. This value is not subject to depreciation and is agreed upon by the policyholder and the insurance company. Most classic car markets have their own in house valuation experts to review your submission and reach the agreed value with you. Having this valuation option is considered a basic requirement for these programs. Use restrictions  – Most classic car policies require that you have a daily driver.  The travel to car shows, some personal use is permitted. The basis for the requirement that you have a daily driver is the discount offered for the vehicle not being on the road routinely. Classic car insurance may have requirements that the car is in a garage and that when traveling to shows the car is protected with a car cover. Make sure you understand any use restrictions or storage requirements in the program. Enhanced roadside assistance  – The classic car insurers have their own network of roadside assistance providers that use flatbed recovery vehicles, soft straps, and tie downs. This is to protect your classic vehicles finishes and take care of its frame and suspension. Determine if this if available and how important this is for you. Claims and restoration management – Classic car insurers have dedicated staff adjusters and restoration consultants to work with you to get the proper repairs, collision, and refinishing services for you. Does the insurer offer the right services and service network for your needs? Restoration and repair are very distinct processes. Fleet coverage  – Some classic car carriers can insure your classic car and your daily driver. You would not need separate insurance policies. Some standard market companies offer classic car endorsements to their policies. Consider the standard market carriers ability to provide some of the services mentioned above if you choose to use an endorsement for your classic car. The Driehaus Difference We can help you find the right policy to protect your classic or collectible car.  This is not an “only pay for what you need” situation. If you are not comfortable with the unique insurance concerns for these vehicles, you can be in for an unpleasant claim settlement. Call us at 513-977-6860 or contact us via our website driehausins.com  to get in touch with an expert to help you. We want to be your insurance provider.

The use of solar energy has grown every year for the past decade. Solar power is now a mainstream energy source, producing more than 5% of domestic electrical power and the use of solar power is expected to continue to grow. With any electrical system, there are hazards that are present and that need to be addressed to prevent injuries, fires, and electrical faults.   Equipment Selection Solar systems are made up of a number of components that operate together to generate usable electrical power. The most visible are the photovoltaic (PV) panels that are roof mounted or rack mounted. The cost of these panels has been trending down and the power output has been trending up. This has made solar power a more economical option for homeowners and business. The growth of the market has led to a wide range of quality panels being available. A good yardstick for assessing quality is the presence of a listing indicating compliance with UL standards.   The PV panels should be UL listed to one or more of the following standards. UL 1703 For flat-plate PV modules and panels, this standard includes fire tests to characterize the performance of modules and panels. It also includes a system fire class rating for modules or panels combined with mounting systems and roof coverings. UL 2703 For rack mounting systems and clamping devices for flat-plate PV modules and panels, this standard also covers ground lugs and requirements for ground-mounted and roof systems. It can also be used to determine the fire classification of a rooftop-mounted PV system and maintain the roof's fire performance integrity. UL 61730-2 For PV module safety qualification, this standard includes requirements for testing and IEC 61730-2. It also covers wiring and harnesses, which need to be sunlight resistant and rated for wet locations at temperatures of 90ºC or higher.   The inverter that converts DC power from the panels to AC power used in your home should be UL listed to UL 1741. Many utilities require certification of compliance with this standard as part of their connection agreements.   Electrical Installation The National Electric Code has specific regulations and installation requirements for solar energy systems, Article 690 of the National Electric Code covers these requirements. You should get written verification that the installation at your building meets these standards. All PV installations should be subject to permitting and inspections by third party electrical inspectors. The NEC is updated every three years to reflect current equipment and emerging issues. Be sure your installer is using the most current edition of the code. Many local building departments use an electrical code that is three to six years old.   Utility Connections One selling point for solar energy is that you may be able to send energy to the grid, reducing your electric bill. You need to contact your utility to select the type of agreement and to complete the connection process. This may include insurance requirements, system documentation and equipment certifications. Utilities may require a dedicated disconnect switch to isolate your system from the grid. The utility may require an inspection before your system can operate connected to the grid.   Energy Storage Systems Instead of selling power to a utility you may opt for storing energy in a battery bank. The type of battery bank will dictate the specific standards that apply to the installation. The most popular option today is lithium-ion batteries arranged in racks. There are no recognized fire control systems for these batteries . So, a lithium-ion battery system that fails can create a significant uncontrolled fire hazard. Consider this when deciding on the placement of your battery system.   PV Installation Considerations Roof mounted PV arrays add weight to the roof. You need to verify that the structure of the building can handle the additional weight of the solar system. The system will also add wind loads and snow loads to the building. These additional loads must be calculated and included in the roof structure design evaluation.   The use of PV panels that are not UL Listed for fire ratings can cause your roof system to lose its fire rating. If you are required to have a specific fire rating for your roof covering, make sure the PV panels selected do not conflict with this requirement.   System layout should allow for roof access and easy access to the panels for repairs and maintenance. A large array with inaccessible inner panels can create difficulty at time of an emergency repair.   Ground mounted systems on racks should also consider wind and snow loads for the rack system. If the racks are designed to track the sun, the motors and operators should be rated for the loads involved. Foundations for the racks should be able to handle frost heave from wither freeze and thaw cycles. Electrical connections can be damaged by panel and rack movement.   Vegetation control should be considered for ground mounted systems. A fire in vegetation could cause significant damage to your solar array. Ground mounted solar systems may be subject to local zoning laws and be subject to setbacks and area limitations.   Insurance Consideration You will need equipment breakdown coverage as the electrical system for your building has gotten more complex. There are equipment breakdown products for both personal lines and commercial lines that can offer protection for the equipment, wiring, controls, and potential loss of revenue. This is not automatically included, and you and your agent should discuss your system and its financial impacts.   The Driehaus Difference We have insured businesses and homes with solar energy systems for many years. We understand the exposures these systems present, and the insurance coverage needed to protect your interests. Call us at 513-977-6860 or reach out using the contact tools on our website, www.driehausins.com . We want to be your insurance provider.

Water Temperature The first control point is the proper setting of the temperature for your water heater. If your water heater is used exclusively for use in faucets, bathtubs, showers, and appliances it should be set at a maximum of 120 deg F. Most hot water heater manufacturers have this as the factory set point. The plumbing code allows a 140 deg F water temperature if the water heater has domestic use and is used as a heating source. Tub and Shower Valves Industry safety experts have chosen 120°F (49°C) to be the maximum safe water temperature for showering and bathing purposes. In a showering application where the shower head is fixed, a user subjected to a surge of high-temperature water usually reacts by abruptly moving away from the hot spray. This abrupt movement often causes falls, resulting in the stunned user not being able to escape the scalding water stream. Children and some elderly persons often have delayed or no physical reaction to the scalding water such that they continue to stand in the stream. Therefore, showers and combination tub/showers must have a shower control valve that is capable of protecting an individual from being exposed to water temperatures in excess of 120°F (49°C). The control valve must be installed at the point of use. In other words, the person in the shower must have access to the control handle(s) of the valve. The control valve must be designed to protect against two types of events: (1) extreme temperature fluctuations from the user’s set temperature caused by changes in hot or cold-water distribution line pressures and (2) extreme temperature conditions caused by the user either purposely or accidentally adjusting the control valve to deliver the hottest water available from the hot water distribution system. Where water inlet pressures or temperatures fluctuate during shower use, control valves complying with  ASSE 1016/ASME A112.1016/CSA B125.16  must automatically and rapidly adjust to maintain the water discharge temperature to ±3.6°F (±2°C) of the user-selected temperature.   The standards also require that shower control valves have a maximum temperature-limit device that is not adjustable by the user at the point of use. The high-limit stop is typically an adjustable set screw or cam that is manually set to limit the travel of the control valve handle. The high-limit stop must be field adjusted at the time of installation to limit the delivered water temperature to a maximum of 120°F (49°C). Types of Shower / Tub Valves The three types of shower control valves available are pressure balancing, thermostatic and combination thermostatic/pressure balancing. A pressure-balancing valve senses changes in pressure of the hot and cold-water supplies (up to 50-percent pressure change). If the pressure on one side changes, the valve reacts so that the flow from each side of the valve is adjusted to maintain the user’s temperature selection. The thermostatic valve senses the discharge water temperature and adjusts flows of supply water to the valve to maintain the user’s set temperature. A thermostatic valve provides some limited protection against hot and cold supply pressure fluctuations (up to 20-percent pressure change). A combination thermostatic/pressure-balancing valve adjusts to changes in supply pressures (up to 50-percent pressure change) and discharge temperature. Pressure-balancing control valves are used in a majority of shower applications. One slight disadvantage of the pressure-balanced-type control valve is that any change in the temperature setting of the water heating system will affect the maximum discharge temperature available from the control valve. If the system temperature is lowered, some users might complain that they are not receiving hot enough water. If the system temperature is raised, the maximum water temperature available from the valve might be in excess of 120°F (49°C). Seasonal fluctuations in the cold-water supply temperature can also affect the maximum discharge temperature. Thus, pressure-balancing-type control valves might require periodic readjustment of the high-limit setting. The maximum discharge temperature from a thermostatic-type control valve is not affected by changes in the temperatures of the hot and cold-water supplies to the valve except for when the hot water supply temperature falls below the high-limit setting. Although this type of valve might significantly reduce the need for readjustments to the high-limit setting, due to its inherent limited protection against supply-side pressure changes, a thermostatic valve might not be suitable for applications where large pressure fluctuations (greater than 20-percent change in pressure) are expected. A combination pressure balanced/thermostatic control valve offers the greatest degree of protection for the shower user. As the name implies, this type of valve offers the best features of both the pressure-balanced-type valve and thermostatic-type valve designs. Valve information from ICC Code Commentary Testing and Maintenance While the combination of water heater temperature setting, and the use of a protective shower valve may seem to have solved this problem, testing and maintenance is a key part of the process. Initial testing and setting of the temperature at the water heater and the output from the valves should be measured with a thermometer. Testing the valves under foreseeable use conditions such as flushing a toilet and operating other plumbing devices should be conducted.  As these are mechanical devices, you should periodically test the valves and settings to assure they remain safe. The Driehaus Difference Before the verdict was returned we identified scald injuries as a loss source in our article Risk Management Strategies of Landlords.  We want our clients to be aware of exposure and take the appropriate actions to prevent losses and injuries. We want to be your insurance provider, so call us at 513-977-6860 or contact us via our website at www.driehausins.com

Fundamental Principles Many injuries are sustained when a piece of equipment suddenly activates or moves unexpectedly when you are servicing, adjusting, or setting up a piece of equipment. While the foundations of this topic are found in Occupational Safety and Health Administration, OSHA, regulations, the fundamental principles apply everywhere. Since the OSHA standard is regulatory in nature and therefore not an easy read. Let us focus on the fundamental principles of controlling hazardous energy.   Two Elements There are two parts to this process – Tagout and Lockout   Tagout is the first level of control. You must alert people that you are working on the item in question and that it should not be handled, changed, or used by anyone else. Your tagout should identify who is in control of the process and the date of the tag application. This will allow others to know who to see and when the work commenced. This first level of the process is a warning, not a control point. A tagout alone is not an acceptable level of control.   Lockout is the positive control of hazardous energy sources. This is a positive action that prevents the energy from being released or used by the equipment. This is the point of hazard control that provides protection to you.   Energy Sources - Identification   To control hazardous energy, you must recognize the source of that energy. You need to look carefully at the equipment you are working with to identify the energy source(s) that require control.   Electrical Energy — is more than throwing a switch. Do you have exclusive control over the switch? If the answer is no, then you have not controlled the electrical energy. Anyone can turn on the switch, plug the cord in or reset the breaker while you are working on the equipment. You also need to consider if the equipment has alternate power feeds. This can be solar, wind, battery, or backup generator power.   Water, Hydraulic, and Air Pressure — are generally controlled by some type of valve. Having control over that valve or valves offers control over these energy sources.   Stored Energy — batteries and capacitors are sources of electrical energy. There can also be stored energy in any pressurized system.   Heat Energy — can be found in a variety of equipment. Steam, hot water, thermal oils and cooking oils are all common types of heat transfer mechanisms.   Mechanical Energy — found in wheels, springs, gears, and elevated parts. Preventing these parts from moving may require actions beyond controlling the primary power source.   Chemical Energy – energy from a chemical reaction may require isolating the process and any number of feed mechanisms or sources.   Gravity — a commonly neglected energy source that cannot be discounted. Blocking up a vehicle with solid cribbing or jack stands prevents the release of gravity from a failed lift or jack. Support any part that could fall or drop.   Lockout control methods   The best controls allow you to apply a personal lock to a device that prevents the energy source from changing state. There are a number of commercially available kits and tools for this purpose. The part that many people neglect is the concept of a personal lock that you have control over. This is not a zip tie, piece of tape or an opened disconnect. If you cannot assert 100% control over the energy source, you are at risk.   For cord and plug equipment placing the plug in your pocket can be an effective control. It is low tech and requires no purchase. It does require personal effort to take action to protect yourself.   Testing the controls After you have applied a tag and locked out the power source, attempt to operate the equipment to verify that it is in a safe state. This is when you may discover stored energy sources or alternate power sources. It is better to make these discoveries in a test environment than when your body parts are at risk.   Removing the controls Test the equipment to be sure your repairs and adjustments are working, and that normal power and operation is restored. If hands in the hazard area adjustments are needed, keep the tagout and lockout process in place until repairs are completed. When you are satisfied that the equipment is ready to return to service, alert affected staff that work is completed.   Workplace documentation The OSHA standard calls for an inventory of your equipment and specifically identifying power sources and control points. This will also guide your purchase of control devices and materials. This step is often left incomplete, and the failure is noted when an injury occurs.   In addition to the documented procedures, you should document the training of your staff. There are staff who will be applying the tags and locks and a second audience of people who work in and around the affected equipment. Both groups need training on the program and to recognize and honor the tags and locks.   The Driehaus Difference We can help you identify resources to get your lockout tagout program in place. We advocate that you extend these principles to home exposures. Many of the same hazards at work are present at home is different packages. We want to be your risk management and insurance provider. Call us at 513-977-6860 or reach out via our website www.driehausins.com

The electronic picture frame was a Christmas present. It was made in China. Is this safe to plug in and leave powered up 24/7?  That depends on the product listings for this device. Here are things you should know about the listings on products. What is a Product Listing? When you purchase a product, you expect that the product will meet minimum safety standards. Manufacturers and distributors will apply labeling that indicates that the product meets safety standards. That sounds like a good way to verify safety, but the use of these labels is not consistent between agencies. In the United States the most common label is the UL label. This label indicates that Underwriters Laboratories have evaluated this product, and it meets the applicable safety standards. The UL listing is not automatic or free . The manufacturer must pay UL to conduct the evaluation and be subject to follow up audits and inspection to verify that products are being manufactured to the appropriate standard. To be listed by UL the product must use component parts that are UL listed and meet safety standards. The final assembly must meet safety standards and be evaluated by UL. The safety standards can come from consensus standard developers such as ASME, ANSI, and other industry specific groups. UL has some of its own standards that have been peer reviewed per ANSI protocols.. It is interesting to do a search on Amazon to see how prevalent the UL listing is in the marketplace. I searched for “porch lights outdoor” when doing some work at home. The original Amazon search results brought back over 9,000 results. Using the filters on Amazon, I was able to specify that I wanted UL Listed products. This reduced the search to 2,000 items. Over 75% of the products offered did not have a UL Listing. Were the UL Listed light fixtures more expensive? Yes, they were. The question is, do you believe that an electrical fixture should meet minimum safety standards, and the manufacturer is willing to pay to prove it a feature you desire? There are other recognized testing laboratories that follow processes similar to UL. One of the most prominent in the US is Intertek. It provides a service similar to UL. These listings will show the standard to which the product is evaluated. CE and UK CA Marks Many products display a CE or UK CA mark on the packaging. These marks are different from UL. 90% of these are self-certified by the manufacturer. These are intended to facilitate trade within the European Union and Great Britain. While the European safety standards differ from US standards, the major difference is that manufacturers can self-certify that their products meet the safety standards. There is no third party verification. Why You Should Care Any product that is electrical in nature has inherent hazards, these hazards are not readily visible and only through testing can the safety of these products be verified. A listing agency mark indicates this has been done. One common theme is fires related to lithium-ion batters has been the lack of UL listings for the products. Products that use fuel such as natural gas or LP (Propane) are also subject to product testing and having listings for product specific safety standards. Look for the UL listing on the product. The Consumer Products Safety Commission requires children’s products to be evaluated to meet safety standards related to painting and finishes content, small parts that are a choking hazard, flame spread for textiles as examples. These products sold in the US must meet these standards and the listing must include ongoing audits to ensure continued use of the approved parts and materials. These standards have removed toxic lead paints finishes, highly flammable textiles and toys with small parts that cause choking hazards from the marketplace. You can research the listing mark to see what standards were used to evaluate this product. The bottom line is that product listings from reputable testing agencies are a quality indicator and a safety indicator. Without these listings and labels, you are placing yourself and your family at risk from hidden defects and substandard manufacturing practices. In a global economy where goods are not being produced locally, this may be your last chance to assure an acceptable level of safety. I ultimately decided that the picture frame was OK, it had listings from Intertek that addressed electrical safety. The Driehaus Difference We care about your safety. The best insurance claim is one that never happened. We review industry reports on losses and note that many of these losses have a common factor, unlisted products. We want our clients to be educated about the risk management tools that are present in the marketplace, and we encourage our clients to use these tools to protect themselves. An insurance claim is a response to an unfortunate event. Avoiding that event is the best risk management technique you can employ. We have internal risk management resources to help our clients make good choices. We want to be your insurance provider. Call us on 513-977-6860 or contact us at www.driehausins.com .

This is part of your sprinkler system that is of great importance to insurance representatives and fire and building code enforcement staff. It is required to be installed when the sprinkler system is activated. Unfortunately, many of these signs are lost or they are filled out using a non-permanent ink that degrades and becomes illegible. If plans and calculations are not available, the data is difficult to find. Why should you care about a sign? It does not affect whether the system works or not. But in a sense, it does affect the effectiveness of your sprinkler system. By clearly identifying the design basis of your system, it tells the story of what the system was intended to protect. A system designed for protecting metal goods will not control a fire in plastic goods. Both the insurance carrier and the responding fire department have an interest in this information. Lack of this information can create difficulties for you in the future. Insurance Impacts of a missing placard The first impact may be the insurance company not offering sprinkler credit for the building because they cannot verify the design is adequate. They may make a recommendation to get the system design calculated or they may simply quote a rate that is much higher. Many buildings that are fully sprinklered never get the rating benefit of the sprinklers because the sign is missing. This can be a very expensive recurring cost.   Fire and building code impacts of a missing placard When you are applying for a building permit or a permit related to the fire code, the adequacy of your sprinkler system may be a factor in approving the request. Without a placard, the Authority Having Jurisdiction (AHJ) may decline to approve your request due to insufficient supporting information. The 2025 edition of NFPA 13, the standard for installation of sprinkler systems, now requires that existing systems have accurate hydraulic calculation placards. If your locality had adopted this code, you may get a violation notice to get the system calculated. What are the numbers on this placard? Basis of Design Density or starting PSI – A sprinkler system can be designed to flow a certain quantity of water over each square foot of the design area. The density is between 0.10 to 0.80. If the density is .20 then the sprinkler system is designed to discharge .20 gallons per minute per square foot over the design area. Starting Pressure - An alternate design method is to choose a specific sprinkler and base the design on a starting pressure for that sprinkler head. This value is shown in Pounds per Square Inch (PSI) Design Area of Discharge – If your sprinkler system has a density, then it will have an area of application or design. This can be a number between 900 and 5,000. This is the area of your building that is designed to have every sprinkler head in this area flowing the designed density. Number of Sprinklers Flowing –  for systems with a starting pressure, the second part of the design is the number of sprinkler heads to be included in the calculations. For an area/ density system the number of sprinklers flowing can be a check for the coverage of each sprinkler in sq. ft. This figure of per head coverage varies with the hazard being protected.  System Demand Residual Pressure at the Base of Riser — is the minimum water pressure needed to satisfy the system demand. This is based on the piping sizes and layout of the sprinkler system Total Required Flow – this is the amount of water in GPM that is required to provide based on the density/ area or starting pressure and number of heads design. Hose Allowance – System design includes hose streams for the fire department. The typical hose streams can be between 100 and 750 GPM Occupancy Classification - is for systems that are designed based on the occupancy of the building. These are Light, Ordinary 1 or 2 and Extra Hazard 1 or 2.   Commodity Class – is for storage occupancies. Each storage system is designed to protect a specific commodity. Changes in commodities can make systems inadequate. Maximum Storage Height – systems are designed with storage height as a controlling factor. Indicating the maximum storage height anticipated by the design is important to allow evaluation of height increases and the impact on system adequacy.   The placard provides a wealth of information about your sprinkler system and the hazards it was intended to protect. Missing or illegible placards prevent those evaluations from being completed. The latest NFPA codes make having placard data available a requirement for existing systems. Watch for this to be a more frequent recommendation from insurance companies. The cost to reverse engineer this can be several thousand dollars.   The Driehaus Difference We understand this topic and can help you navigate your methods to comply. Call us to discuss a missing placard and we can help identify possible solutions that may exist. Getting the data properly presented can help reduce your property insurance costs. We want to be your insurance provider, call us on 513-977-6860 or reach out to us via our website, www.driehausins.com .

Homeowners insurance There has been a lot of press around homeowners’ insurance and the difficulty that has arisen with pricing and availability of homeowners insurance. The news stories want to attract your attention and clicks on the web, so the headlines are pretty sensational. Here is a look at the issue from a local perspective. Availability The Ohio, Kentucky and Indiana marketplace has not seen the exiting of carriers or major coverage restrictions. Our area has not been the locus of high dollar catastrophes such as hurricanes, wildfires, or earthquakes. That does not mean that flood losses, high wind losses and tornadoes have not cost property insurers a lot of money. Some of these losses are aggravated by climate change and our area is not immune to this factor. Our customers with homes in Florida and other coastal states have been impacted by the exit of carriers in those states. A combination of legal environments that favor claimants and climate changes that have aggravated storm intensity and frequency have made insurance companies more conservative. Changes in FEMA’s  flood pricing have also impacted these areas. Coverages On one hand you will see increased vigilance on roof-related issues. Conditional renewal unless roof condition is acceptable is more common. Changing the valuation for an older roof, over 15 years, to Actual Cash Value (ACV) versus Replacement Cost is also being seen. Some insurers are using more robust flood hazard data than FEMA, to price and select risk. Changes in the underlying FEMA rating program have also increased renewal costs and hiked new flood insurance costs significantly. On the other hand, insurers are enhancing this product with additional coverage. Most companies are now offering some level of coverage for underground service lines, water and sewer lines are the primary target items. These were excluded from coverage before this addition. Some homeowners’ policies are offering Equipment Breakdown coverage that provides some level of coverage for building systems such as heat, HVAC, and some appliances. This is new coverage. Carriers have also added coverage for cyber losses and identity theft. We maintain that there is a split personality in insurance carriers, as one side of the house is raising rates, restricting coverage, and using more detailed tools to evaluate risk. The other side of the house is adding coverage for formerly excluded items. The product expansion and enhancements are sales tools to attract new business. New coverage brings new losses. It would appear that the underwriting and marketing departments are on separate floors and do not exchange data. It is not clear how coverage expansion is impacting renewal pricing. What you can do to manage the insurance cycle Values The first item to consider is your values on the policy. Insurers like to use “Reconstruction costs” as their basis for underwriting. This valuation reflects that most property insurance claims are not total losses, so the repair costs involve matching new finishes to existing finishes. If you have remodeled your home, you know the challenge here. So when you look at the values on your policy, remember the need to have limits that will pay for reconstruction versus replacement. As the owner you should also update your values for major remodeling, changes, or additions to your property. If the insurer believes you are understating your values, it places you at a disadvantage in negotiating terms. Maintain your Property Insurance is not intended to be the roof replacement provider. Waiting for systems and components to fail versus having a good preventative maintenance program will make having a stable insurance placement more difficult. Poorly maintained property generates higher losses and a frequency of claim activity. Both are detrimental to a stable insurance program. Evaluate your Deductible Carrying a low deductible can lead to your turning in small claims. The insurance company believes that frequency breeds severity. So, small claims are a predictor of future large losses. If you can afford to absorb a large dollar amount now, you can protect your access to the higher limits later. Practice sound Risk Management There are quite simple and low-cost things you can do to protect your property. Maintain your smoke detectors and carbon monoxide detectors. Single station smoke alarms have a ten-year life span. If you have not replaced your detectors in this period, you may have limited protection. Upgrade water connections for your washer, refrigerator, and dishwasher. All of these appliances come with rubber or plastic hoses. Upgrading to higher quality stainless steel supply lines is low dollars and high return on investment. Manage water damage exposures by using technology. If you do not use technology, identify, and exercise water shut off valves. One simple loss prevention step is shutting off water when you leave home overnight. This is a no cost step that prevents a major water loss from unattended property. Document updates to systems such as HVAC, furnace, electrical system plumbing and roof. Being able to clearly identify when these systems were updated, and the extent of the update can be important for negotiating with your insurer. The Driehaus Difference We do things so you do not have to! Tracking the behaviors of our homeowner’s insurance companies, knowing their programs related to water damage detection, roof surveillance and pricing trends are our job and we do it well. We cannot control climate change and its impact on natural hazards. We have discussed these in other articles. We can offer some low to no cost risk management steps and share our knowledge of insurance best practices to get you the best insurance program that is tailored to your needs. Call us at 513-977-6860 or use our website, Driehuasins.com to reach us. We want to be your insurance provider.