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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.

As a condominium unit owner there is a specific insurance form for you. The HO-6 policy is for unit owners. It combines both property and liability insurance in a single form. The unique areas of the form are related to property coverage, and this is where the details matter.   Building Coverage You obviously do not own the entire building, but the values that you must protect can vary based on the wording of your association by laws. Bylaws can vary the responsibility of the association for items in your unit. An “all in” clause in the bylaws would make the association responsible for all of the interior finishes, appliances, and wall and floor finishes in your unit. Other bylaw provisions may make anything from the studs or drywall out your responsibility. Some bylaws may read as “all in” but the association insurance is designed to replace “building standard” equipment and finishes. If you have upgraded, the increased cost is your responsibility. This can be a challenge for new owners who are buying an existing unit. Not knowing the “building standard” may make choosing limits more challenging. We ask our clients to provide us with a copy of the bylaws of the association so we can read the clauses in question and offer our counsel on your needs. We make these observations as “only pay for what you need” and “15 minutes will save you 15%” do not help you with these decisions. You need an experienced insurance professional to guide you to a sound choice. Contents Coverage This is the value of the personal property you have in the unit. We recommend that our clients do a periodic inventory with video of their contents. This will help you identify things that have been added or deleted since the last time you set this value. Do not neglect property in off premises storage units. Your form may offer a sub-limit or a percentage of the contents limit for this exposure. Knowing the values exposed will clarify if standard policy terms are effective for your needs. Loss of Use In the event that your unit is not able to be occupied due to a covered cause of loss, you may be able to claim loss of use to recoup expenses for alternate living space. Different insurance companies have different ways to set this limit. The important issue to consider is how long should you project for loss of use coverage needs? A large loss at your building could easily cause more than a 12-month period for you to be away. Policy language should be specific that the time for loss of use can exceed the term of the policy. Our staff understands how our carriers arrive at this limit and can help you select the correct coverage for this expense. The cost to get the right limit is a pittance of the costs of not having enough coverage. Loss Assessment In addition to knowing the details of your insurance program, you need to know the details of the master insurance program for the association. We would like to review both the bylaws and the master policy information as part of our due diligence.   These policies will have deductibles that are the responsibility of the association. The bylaws will allow the association to recoup these dollars via a loss assessment. You need to know the deductibles that apply to the master policy. Keeping in mind that there can be several different deductibles. A wind and hail deductible is common. This can be a fixed dollar amount or a percentage of the building’s value. There may be a different deductible for water damage, flood, and earthquake claims. The standard policy deductible will apply to all other perils.   The bylaws will describe how this assessment will be calculated. It may have all unit owners share in the expense, or it may have the deductible applied to the units involved in the loss. For a roof claim on a single building, the deductible could be shared by the owners in that building. Knowing the potential amount of this deductible and your share is key to setting the right limit.   Master Policy Valuation Clauses In addition to peril specific deductible there can be peril specific valuations. For buildings with older roofs, the insurance carrier may apply an actual cash value (ACV) to the property. This will reduce the recovery and raise the potential loss assessment charge. To reduce premiums the carrier may change the entire policy to ACV from replacement cost (RC). Fannie Mae and Freddie Mac have rules that limit their exposure to ACV coverage. They have a database of master insurance policies that have ACV language in them, and you may find that getting a mortgage or refinance a mortgage through these sources is difficult if your association has ACV language in the master policy. Syncing your policy with the master policy One strategy to consider is having your HO6 with the same insurance carrier as the master policy. If you have the right limits in place, any issues are then an internal debate at the insurance company. Which of the two policies will cover this loss? If you have a different insurance company, then it is which company can avoid the claim. While syncing may seem to be a bother, it may make life a lot easier at time of a claim. The Driehaus Difference We deal with these issues every day and are familiar with the various terms used in bylaws. We also know the structure of a master policy and how to interpret what forms are attached to the policy. We want to be your insurance provider. Our experience and expertise will help you get the most comprehensive and cost-effective insurance program. Call us at 513-977-6860 or use the contact tools on our website, www.driehausins.com .

Enhanced Reporting Program Establishments with 100 or more employees in designated high hazard industries listed in Appendix B to Subpart E of 29 CFR 1904 must electronically submit to OSHA detailed information about each recordable injury and illness entered on thier previous calendar year's OSHA form 300 and Form 301. You can check to see if this new requirement applies to you at https://www.osha.gov/itareportapp This includes the date, physical location and severity of the injury or illness; details about the worker who was injured; and details about how the injury or illness occurred. The new data will help OSHA and third parties such as prospective employees and research groups to more clearly define hazards and controls that can improve workplace safety. There will be controls on the data to prevent any reports from identifying a specific individual. Reporting Requirements OSHA requires that employers with 10 or more employees maintain records of serious work-related injuries and illnesses. Some low hazard employers are exempted from this regulation. Click for a list of exempt employers . Minor injuries requiring first aid only do not need to be recorded. Reporting Serious Injuries – All employers, regardless of size or industry must report any worker fatality within 8 hours and any amputation, loss of an eye or hospitalization of a worker within 24 hours. These events can be reported online or by phon e . Maintaining and Posting Records – OSHA logs and supporting records must be maintained at the worksite for a period of five years. Each February through April the employer must post a summary of injuries and illnesses recorded during the prior year. This form is part of the OSHA 300 form set. Fillable forms are online at the OSHA web site, click here . Electronic Submission of OSHA 300A Data – Any employer with 250 or more employees must submit their OSHA 300A summary data to OSHA electronically. There is a list of establishments that must also report their 300A summary data to OSHA. These establishments will report if they have 20 or more employees but less than 250 employees. The Injury Tracking Application (ITA) is accessible from the ITA launch page , where you can provide the Agency your OSHA Form 300A information. There are new sign-in procedures since October 2022. The above link will help you navigate these changes . The date by which the above noted employers are required to submit to OSHA the information from their completed Form 300A is March 2nd of the year after the calendar year covered by the form. Incident Rate Calculations – Your OSHA 300 data has some of the values needed for calculating your total incident rate and your days away, restricted or transferred (DART) rate. You can download fillable PDF form s from OSHA. A detailed calculator that allows you to benchmark your business against both state specific and national trends can be found at the Bureau of Labor Statistics calculator . Incident and DART rates are often used in qualifying contractors and suppliers for bids. Making sure your data is sound for these calculations can be an important step in qualifying for some business opportunities. The incident rates may be used by insurers when evaluating workers compensation and general liability exposures. Companies that have a higher than average injury rate or a higher than average rate of serious injuries as indicated by the DART rate may have less attractive terms and conditions for insurance coverage. First Aid Only Cases – OSHA requires that only serious injuries or illnesses be recorded. There are criteria to define a first aid event. You should be familiar with these requirements and use them in your recordkeeping process. It is not in your interest to have incidents that are not recordable on your OSHA log. Click here for the OSHA first aid definition The Driehaus Difference Insurance without risk management is only a partial solution. We understand the insurance marketplace as well as the OSHA rules, recordkeeping and how this data is used in business and insurance. If you need help, we have the expertise and resources to help you manage this important information. Visit our website at www.Driehausins.com or call our office 513-977-6860 to contact us. We look forward to helping with your risk management program.

Social media and the news feeds are full of stories with insurance companies cancelling policies. This headline makes for a strong click rate and generates a lot of heated commentary. As with many insurance related topics, the words have specific meaning, and the real story is not always as dramatic as the headline.    Cancellation  An insurance policy can be cancelled by either the insured or the insurance company. There are a few limitations on the cancellation by the insured. There are state laws and regulations that dictate the insurance company’s actions. Written notice is provided to the policyholder.   Why would a company cancel my policy?  The most common reason for policy cancellation is nonpayment of premium. The company may offer a short grace period, but if they are not paid, the policy will be cancelled.  Misrepresentation or fraud on behalf of the insured is a reason for cancelling coverage. Concealing or misrepresenting information on the application for coverage is grounds for cancellation.  Changes in risk – a new product, process, or new business venture can cause a cancellation if the level of risk rises.  This can include non-compliance with risk control recommendations. Violation of policy terms – improper conduct during a claim investigation or discovery of change in operations that are outside of the current policy are grounds for cancellation. Using vehicles for business use when they are rated personal use only is an example.    The key element of each of these situations is an action, omission or change that the policyholder creates or initiates. Your insurance contract was based on information you provided at the time of application. Inaccurate information that changes your risk level is grounds for the carrier to cancel.    Most states require a short notification period of the cancellation. The most common is ten (10) days. In some states the ability of the insurance company to cancel for underwriting reasons may be limited to a short time after the effective date of the policy. After that date, the non-payment of premium or violation of policy conditions are the reasons available for cancellation.    Non-Renewal   An insurance company may decide not to renew policies based on a wide range of business issues. Written notice of the non-renewal is sent to the policyholder.    Non-renewals by the insurance company may relate to not wanting to write a specific coverage line; limiting the geographic area of coverage, claim frequency can be a cause for non-renewal and changing market and economic conditions that affect the insurance company.     In the case of wildfires the geography, line of coverage and economic factors are outside the control of the policyholder but impact the insurance company. It is in everyone’s interest that insurance companies are financially stable. The distribution of risk is impacted when fewer players are in the marketplace.    The only factor that is in the control of the policyholder is loss frequency and severity. If you are unprofitable and there is not a reasonable path to changing that experience, you can expect to be non-renewed.    State regulations call for a longer notice period of non-renewal, often a minimum of thirty (30) days before the expiration of the policy.   Impact of Cancellation     The first impact is that coverage will be lost. The cancellation is immediate at the time and offers you a short time to take action. The non-renewal will offer a greater window of time to make new coverage arrangements.    A cancellation can make obtaining new coverage more difficult. The first question on most insurance applications regards your history of being cancelled or non-renewed. Omitting an answer or offering a false answer to this question could be considered material misrepresentation and grounds for the next cancellation.    For cancellations, the policy will have provisions for returning premiums if cancelled. Consult the policy for the premium refund calculation process.   Impact of Non-Renewal  You will have more time to market your insurance program. Non – renewals come with at least 30 days advance notice. It is possible that your agent knows about the impending non-renewal in advance and can proactively market your business.    Other than claim history, the other reasons for non-renewal are outside of your control. Other carriers will know what is happening in the marketplace and will have a position on the circumstance that prompted the non-renewal.      Applications will ask about non-renewal status. Omitting the answer or providing false information is not a good idea. Every insurance company makes business decisions and those do not reflect on the individual policyholder.   What to do if you are Cancelled or Non-Renewed   Call your agent immediately!  In some cases, your agent may be able to get the decision reversed. Waiting until the policy is no longer in force limits your options and the ability of an agency to change decisions.    Prepare to market your insurance program. Updating exposure information, vehicle lists, drivers list, payroll and sales information will make the marketing process smoother and more successful. Incomplete or missing information creates delays in a time when time is short.    If the non-renewal is based on losses, be prepared to detail how the circumstances that created the losses have changed and the insurance company can expect better results. If the reason is data from a third-party provider such as roof surveys, have facts and documentation available to respond to the issue.    The Driehaus Difference  We carefully monitor the appetites and market direction of our insurance companies. We can be ahead of the curve when a carrier starts to signal a change in appetite or coverage availability. We can help you get ahead of the decision. For cancellation we can ask for the carriers to offer another chance. In the case of nonpayment of premium, you may need to premium finance the balance to remove the credit risk from the insurance company. We will need accurate and timely responses to make a case for a change by the insurance company.    We live in this industry and can help you navigate the sometimes choppy waters of the insurance marketplace. We want to be your insurance provider, so call us at 513-977-6860 or reach out to use via our website at www.driehausins.com

The ongoing wildfires in southern California have highlighted this hazard and the tragic results brought international attention. The damage estimates will top $50 billion dollars, making this the second most costly event behind Hurricane Katrina. Katrina affected four states, these fires affected one county. Wildfires were previously called forest fires, and they were a rural event. As time went past the fires were now burning in the wildland urban interface. This was where the forest met the developed areas. It was still considered to be a more remote area of impact. Fires recently have moved into decidedly urban environments. Lahaina, Hawaii, 2023 — A wildfire-started conflagration that killed 98 people and damaged or destroyed over 2,200 structures Marshall Fire, Colorado, 2021  — A fire that started conflagrations in Louisville and Superior, Colorado, killing two people and destroying 1,084 structures Almeda Drive Fire, Oregon, 2020  — A fire that destroyed 2,600 homes and killed three people in the communities of Phoenix and Talent Camp Fire, California, 201 8 — A fire that killed 85 people and destroyed 18,804 buildings in Paradise, California Gatlinburg and Pigeon Forge, Tennessee, 2016  — A fire that killed 14 people and destroyed 2,460 structures These events have losses similar to the Great Chicago Fire of 1871, the 1906 San Francisco Fire, and the Great Fire in Baltimore in 1904. These conflagrations gave rise to the Public Protection Class tool used by insurance companies. This rating scale of 1- 10 with 1 being the best measures the fire department’s ability to resist a major urban conflagration. It focuses on the ability of the fire department to control fires within a given area using conventional apparatus, staffing, communication, and water supplies. LA City FD is ISO 1, and LA County FD is ISO 2. The fire department and water supply were judged to be above average by the PPC scores. Property underwriting evaluates a single building with adjacent exposures. The assumption is a single fire. The wildfires do not behave in this predictable manner. There can be dozens of fires at the same time with wind driven brands starting fires well in advance of the front line. Traditional firefighting methods, traditional water supply calculations and traditional insurance underwriting all fail to manage this situation. This is fueling the crisis status of California property insurance. This trend indicates that the traditional methods used to control conflagration are simply not effective. Whether the issues are climate change, space lasers or just bad luck, the trend cannot be ignored. Unlike hurricane events where flooding is often not a covered peril for property insurance, these events are covered by property insurance. Our July 2023 article on Wildfires , indicated the increased use of wildfire hazard scores. This is a function of fuel type and quantity, slope, and weather conditions. The biggest variable in this process is weather, so the computer models run thousands of simulations to adjust for weather variability. This process is documented in FEMA National Risk Index. This index was updated in March 2023. Various groups have built upon this methodology to create brushfire scores for properties. Using overhead images and machine learning and artificial intelligence to interpret the slope, vegetation, distance to structures and exterior construction of the building generate a score. This is the foundation of many cancellation notices. While this shows immediate action, it does not address the underlying issue. You cannot cancel your way to profitability. To make money, insurers have to write business and transfer risk. There are solutions to this problem. There are long-established standards for making properties more resistant to wildfire. They involve the use of non combustible building materials on the exterior of structures, use of windows that resist fire damage, managing the space around the building to limit fuel near the building and improving ember resistance to all exterior ventilation openings. The rebuilding of the fire damaged areas would be immediately improved if building codes were updated. Past experience shows that getting major changes to the building code is an exceedingly long process. Past fire experiences in California have not prompted this type of change in code language. Pressure from insurers has been more effective in moving the needle towards a fire safe structure. Community planning that increases distances between buildings, adds defensible breaks within the community would also reduce the conflagration hazard. Using more land as public spaces that create separation and firebreaks is also an effective tool for resilience. The cost is lower density of taxable structures, so this is a non-starter. Personal planning to use static water sources such as pools or water impoundment systems for rainwater and greywater would be advantageous for individual owners to upgrade their fire protection with exposure sprinkler systems supplied from these water supplies. This would take strain off of the municipal water supply. Some insurers are advocating for these improvements via lower deductibles and being an available market for high value homes. The wildfire hazard has evolved from a Smokey the Bear environment to Malibu. The genie is out of the bottle and unless targeted actions are taken to reduce the risks, these events will repeat. Insurance in its traditional form and structure cannot support the loss dollars these events create. It is not probable that the banking world will allow a wildfire exclusion for property policies. This would shift the risk to the mortgage holders. That is untenable. Insurers simply exiting the marketplace is untenable. The exposure must change and that means building codes, community planning and individual risk reduction efforts will be needed. Watch as the reviews of this event are conducted. Each group involved will suggest they need more of their product. More fire department resources, more water resources, and more insurance responses such as high rates and deductibles. Each group wants to keep using the tools they have. A wise man once told me “If you only have a hammer, everything looks like a nail.” Swinging each group’s hammer will not solve this problem. We have a short memory for tragedy. The speed at which new tragedies occur make the last one forgettable. Unless we acknowledge that wildfire is not a California hazard and is represented across the nation, it will be playing “whack-a-mole” with this exposure. The Driehaus Difference We have observed underwriting decisions based on wildfire exposure creeping into the local market. We monitor these underwriting trends and use that knowledge to help our clients find the right markets for their property insurance. Reach out to use at 513-977-6860 or use any of the contact tools on our website, www.driehausins.com We want to be your insurance provider.

Scope of Noise Exposure The number of advertisements about hearing aids should tell you that hearing loss is a common issue in America. Estimates are that 48 million Americans have some degree of hearing loss. About 5% of adults have a hearing loss that could be classified as disabling.   Hearing loss is considered to be a disability as it affects your normal life activities. Hearing loss is permanent and cannot be restored. Noise is an exposure that exists outside of work and in many cases, there are exposures outside work that are more intense than workplace noise levels.   The Occupational Safety and Health Administration, OSHA, has had occupational noise exposure standards in place for decades. This standard applies at work to offer a minimum level of protection against hearing loss.   The American Conference of Governmental Industrial Hygienists, ACGIH, has a noise exposure that is more conservative than the OSHA standard. The National Institute of Occupational Safety and Health, NIOSH, has also published their recommended exposure limits, REL, for noise in the workplace. NISOH provides research for OSHA to consider in its regulation process. Noise Basics Noise is the presence of sound pressure levels that can be heard by the human ear. Sound pressure is measured in decibels. Noise can be further characterized by the frequency of the noise. High frequency noise is higher in pitch to the human ear. Lower frequency noise can be heard and also felt. If you have been next to a car at a traffic light you may both hear and feel the bass from the other vehicles’ sound system.   Noise acts on the hair cells in the inner ear. High noise levels can cause a gradual and permanent hearing loss. The higher frequency noises are the first to be affected. The loss of hearing acuity can be difficult on normal living and relationships. It can also be a hazard when you cannot hear warning signals.   To control this hazard, OSHA and NIOSH have developed tables that indicate the acceptable time for exposure to various noise levels. These tables are based on a specific set of noise frequencies that are most susceptible to hearing loss. This set of frequencies is the A scale, and the measurements are expressed as dBA to reflect A scale weighting. A third-party group, the American Conference of Governmental Industrial Hygienists, have also published their own noise exposure standards that align with NIOSH recommendations. Exposure Limits  A 100% noise dose is a calculated value based on measured noise levels and the time you are exposed to that noise level. OSHA shows its noise dose as a Permissible Exposure Limit, PEL. NIOSH shows its noise dose as a Recommended Exposure Limit, REL. The 100% noise dose is the maximum level of noise that is safe for exposure. As the noise level, in dBA, increases, the time to reach 100% dose decreases.  PEL and REL are represented by a Time Weighted Average, which calculates noise dose based on exposure levels in dBA and time that the exposure existed.   The table below shows the variance in OSHA regulations and NIOSH provided research-based exposure limits. Time to reach 100% noise dose Exposure level per NIOSH REL Exposure level per OSHA PEL 8 hours 85 dBA 90 dBA 4 hours 88 dBA 95 dBA 2 hours 91 dBA 100 dBA 1 hour 94 dBA 105 dBA 30 minutes 97 dBA 110 dBA 15 minutes 100 dBA 115 dBA To put these noise levels into context, here are example sources that generate the noise levels 85 dBA is equivalent to a loud restaurant dining room. 85 dBA – 89 dBA – Hair dryer, blender, power lawn mower, vacuum cleaner, snowblower, garbage disposer, propeller plane 1,000 feet above you 90 dBA –100 dBA emergency siren, pneumatic drill, diesel truck, gas leaf blower, pressure washer 105 dBA – 110 dBA – Rock concert, pile driver, gas hedge trimmers Over 110 dBA – commercial jet take off, civil defense siren Most woodworking tools are typically in the 90 dBA to 102 dBA range. Gunfire noise levels can range between 140 dB – 190 dB    Many smartphones have noise measurement apps available. TWA measurement requires a dosimeter or a detailed spreadsheet to record noise levels across time. The average level calculated by these apps is not a true TWA, but an average should be viewed in context of the time it represents to see if the levels are higher than the above table values for that period.   A good rule of thumb is that if you need to raise your voice to be heard over any noise, the noise level can be high enough to cause hearing loss.   Example noise sources are present in our homes and hearing loss is not solely an occupational issue.   The first step in controlling your exposure to noise is recognizing the hazard. If you do not recognize the hazard, you will not take precautions to protect yourself from the long-term damage from hearing loss. The Driehaus Difference We recognize that noise exposures are not simple a workers compensation issue. Hearing loss affects your life and your ability to enjoy everyday experiences. There are noise exposures outside of work that can cause hearing loss. Recognizing the signs of a harmful noise exposure allows you to make choices. Those choices are the topic of the next installation of this article, the controls that can be applied these noise exposures. 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.

Control options Once you have identified a noise exposure, you need to manage that exposure. Within the safety field we consider a hierarchy of control methods for a given hazard. Elimination — If it is possible to remove the noise source, which would be the most effective strategy. It is not always possible to do.   Substitution — Changing the noise source to a quieter option. Replacing gas powered lawn equipment with electric lawn equipment is an example of this solution   Engineering Controls — You may be able to isolate the noise source by enclosing it, adding sound barriers, sound absorption material or relocating the noise source to an area that is not occupied. Placing a noise source outside the work area is an effective engineering control   Administrative Controls — can be purposely limiting the exposure time for any person to a level below what the noise standards indicate can cause hearing loss. Putting time limits on noise producing activities can be effective at reducing your exposure. Administrative controls may also include subcontracting the work to a third party. If you do this, you have a duty to warn the other party of the hazard that is present on your premises. If the subcontractor supplies the equipment that produces the noise that was not otherwise present on your premises, the subcontractor will have primary responsibility to protect the hearing of exposed workers.   Personal Protective Equipment (PPE) — provides the exposed person with protective devices that they wear to prevent exposure to hearing loss. The devices can be widely grouped as in ear products, plugs, inserts and over the ear products, headphone, and muffs. This is the most common method of reducing a person’s exposure to noise. This is also one of the least predictable controls as it relies on consistent use and care of the device. Image courtesy of Michael Pittman – NIOSH   Selecting Hearing Protection   To be effective the hearing protection must be properly fitted, worn properly, and worn whenever they are exposed to a high noise level. PPE used for noise protection are rated with a Noise Reduction Rating (NRR). This is a number that represents the level of noise reduction that the PPE provides. If the product does not have a NRR assigned to it by the manufacturer, it should not be considered an appropriate device for personal protection.   If you know the sound level for the work area in question, you can estimate the effectiveness of the PPE by subtracting 7 from the NRR and that result is subtracted from the measured noise level. This would approximate the noise level under the protective device.   Example – Consistent use of lawn mower - 89 dBA- ear plugs with NRR of 29 would have the 89 reduced by 22 to 67dBA. This should be an effective choice of hearing protection.   For extremely high noise exposures such as gunfire, you may use both in the ear and over the ear hearing protection. You cannot add the two NRR ratings together for a higher NRR. T he OSHA Technical Manual allows employers to add 5 dB for the second hearing protector. An example: if wearing an earplug with an NRR of 25 together with an earmuff (also with an NRR of 25), expect a combined NRR of 30. Keep in mind, however, that this rule of thumb is a general estimate.   Use of noise cancelling headphones may be effective if the device has a NRR figure from the manufacturer. If the headphones do not have a manufacturer supplied NRR, they should not be relied on for hearing protection. Use the method above to apply the NRR to the noise exposure to evaluate this type of hearing protection.   Earbuds, headphones, and music to mask noise is a poor choice. You may be compounding the exposure by having a high energy noise source in addition to the environmental noise exposure that already existed. Substituting one high level noise for another does not improve the situation.   Fitting hearing protection To be effective the hearing protection must properly fit the user. Many foam-based products are one size fits all. There is a specific method to insert these foam devices in your ear. The Centers for Disease Control CDC describes this as the Roll- Pull and Hold method.   Roll the earplugs up into a small thin “snake” with your fingers. Pull the top of your ear up and back with your opposite hand to straighten out the ear canal. The rolled-up plug should slide right in. Hold the earplug in place with your finger until it expands to fill the ear canal. Your voice will sound muffled if the plug makes a good seal.   You must use this method to properly get the benefit of in the ear hearing protection.   The Driehaus Difference Most of the major workers compensation carriers have programs to assist clients with hearing conservation programs. We can help you identify the resources needed to measure noise levels, set up a hearing conservation program and protect your interests with the right insurance program. Call us at 513-977-6860 or contact us via our website at https://www.driehausins.com / . We want to be your insurance provider.

If you are doing a large renovation or addition to your existing home, you will obviously need to report the increase in values at completion. But what type of insurance is needed during the course of construction?  The answer may depend on from whose perspective you view the risk.   Contractor Perspective If you have a contractor doing the renovation of addition, they may carry a builders’, risk policy or an installation floater policy on the values of their work. This type of policy insures not only the materials, but also the labor and profit associated with the project. This protects the contractor, but these policies typically have an exclusion for the existing structure, so your home is not insured under these programs. The contractor is covered for his interests, but you may be left in the cold at claim settlement time. Since you are not the policyholder, you do not have any control over the claim process or have any ability to influence coverage terms and conditions. Ask to be named as an additional insured on the contractor’s policy. If possible, obtain a copy of the policy declaration page and share that with your insurance agent. The dec. page will have form information so a review of policy terms could be undertaken on your behalf.   Homeowner Perspective Option One – Existing Homeowners’ policy You can report increased values to the insurance company at the beginning of the project. This would seem to offer the homeowner coverage on the same terms as the existing policy during the course of construction. This is a practical approach if your insurance carrier blankets coverage for real and personal property. In this case there will not be a gap for the difference between real property values and personal property values.   If your policy has separate limits for real and personal property, reporting these values is the complicating factor. If you report all of the values as an increase in building value, you may create a coverage gap. The gap in this coverage may be for materials that have been ordered and not yet installed. If your custom woodwork or materials that are off premises are stolen or destroyed, you may not have coverage for off premises materials.   You would need to cover the project by separating items between real property and personal property to have off-premises coverage. Since installed materials would then be considered building values, this is a difficult balancing act. It would require significant recordkeeping; multiple policy changes and your personal lines carrier may not be happy with the extra processing. Their displeasure may be expressed at renewal.   In either case, covering the course of construction on a homeowner’s policy will also highlight the change in risk when construction activity is underway. Some insurance companies see this as a significant increase in risk and will apply a surcharge to your homeowner’s policy for the duration of the project. We have seen surcharges approaching a 100% increase in premium for the term of the project. In addition to an ongoing accounting and value endorsement process, you will be paying a substantial cost for this coverage. Understanding this additional cost is important to evaluate if a separate builders’ risk policy would be advantageous.   Option Two – A Builders’ Risk Policy We always recommend to our clients that they place the builders’ risk or installation floaters for thier property. This way we know the terms and conditions of each program and can have some control and input to the claims handling process. You may be able to secure a builder’s risk policy from your homeowners’ carrier. It will be from another part of the company but would allow better coordination of coverage and claims handling. If your personal lines insurance carrier does offer a builder’s risk or installation floater, consider a monoline inland marine carrier.   There are monoline renovation inland marine forms that would allow you to insure the existing building during the course of construction. You would need to keep your homeowners in place for contents coverage, but you may find the premiums to competitive and the coverage more comprehensive that trying to adjust your building and contents limits on a homeowners’ policy during the project term.   A monoline policy may be subject to a minimum premium charge. Knowing the potential upcharge for your homeowner’s policy will allow you to determine if the minimum premium charge is cost competitive.   The Driehaus Difference We have helped our clients navigate these scenarios and can help you make the best choice for coverage and cost. There is not a one size fits answer to this situation. The ongoing construction process needs to be properly insured and the cost effectively controlled.  We have learned this and can use our experience to protect your interests.  We want to be your insurance provider, so call us at 513-977-6860 or contact us online at www.driehausins.com

You see a lot of commercials selling service line protection. You may also get official looking mailers that ask you to sign up for this type of program. Before you sign up for this, here are some things to consider. Limits can be low These products have specific limits for each type of service line or home system covered by the program. A review of a major provider’s product indicated separate limits for different home systems and service lines. The limits were a maximum of $5,000 per incident / annual aggregate. Limits for some exposures were less than this figure. For underground lines a $5,000 limit was also applicable to opening and closing public streets and roadways. Depending on the type of pavement present, this could be insufficient for the repairs. Claims handling You may be obligated to use the service line recommended contractors to do the repairs. This removes control over the claim from the customer. If you ask for a second opinion, any costs related to providing that second opinion are deducted from your per event limit. If you engage your own contractor to make repairs the program may not respond to those costs. If you dispute the claim settlement you have to choose between small claims courts or binding arbitration. The small claims court is to limit the size of any recovery. One agreement even had a hammer clause that if you disputed the settlement and the outcome of the settlement was less than the original offer, you paid the legal fees for the service line company. Cost These programs are priced by zip code, and not with any real detail on the property being covered. There is no rating worksheet provided so you cannot see how the premium was developed. This is not insurance These programs are a warranty program, not insurance. There may be a surety company standing behind the program who would step in if the warranty program fails to perform, but there are steps to follow and time frames related to determining a default by the warranty company. You do not have the protection of state regulators as with admitted insurance companies. Your Homeowners Policy Personal lines insurers are offering service line coverage on some comprehensive homeowners’ forms. A previous article on homeowners forms, What's in the form?, discusses the different homeowners coverage forms. One carrier offers a $25,000 limit for this exposure and the claim handling and settlement terms are the same for the balance of the policy.  The cost for this is imbedded in a broadening endorsement that has other coverage extensions.  This is a better limit, cost and claim situation for you. The Driehaus Difference We take time to help you understand the options that are available to you in protecting your home. We can help you find the right carrier, the right policy forms, and the most competitive costs. We do not provide prices based solely on your zip code. We need to spend some time with you to understand your exposure to loss and how we can build a program to protect your interests. This is not a “fifteen minutes will save you 15%” undertaking. We are willing to invest our time and expertise to help you. You need to invest your time in sharing information with us to get you to the right insurance program. Call us at 513-977-6860 or use the contact tools at www.driehausins.com to get the process started. We want to be your insurance provider.

The roof of your home protects your possessions from wind, rain, snow, ice, hail, and fire. Roofing constitutes about 7% of the total building cost of the home with the roof covering accounting for ½ of that amount or 3.5% of the cost. This is a big-ticket item when it needs to be replaced, so choosing the right material is essential for your safety. Shingle roofs constitute the majority of residential roofs. Insurance and shingle roofs The insurance industry has a love / hate relationship with roofs. They love it when the roof does what it is designed to do and prevent a loss. They hate it when there are roof problems that allow water intrusion, wind uplift, ice dam formation, collapse from snow loads and allow fire spread. Insurance company roofing related actions Roofs represent a major loss source for insurance carriers, and they are taking steps to control their exposure to loss. The use of aerial imagery that is reviewed by an artificial intelligence program to score your roofs condition is now common. Every insurance company has their own internal processes to evaluate this data. Your score from this process can determine the deductible offered and if coverage is extended at all. There may be an age-related factor that will be considered in the decision-making process. If you do not know the age of your roof, you are at the mercy of the third party estimate of age. Insurance companies are frequently applying a percentage deductible or a higher dollar deductible to roof and wind claims. The percentage deductible is based on total building value, so it can be a substantial amount for a deductible. Another direction for handling roof exposures is to apply Actual Cash Value (ACV) on roofs over a specific age or that meet a certain scoring threshold in the third-party evaluation. Appealing the insurance company decision Since the roof evaluation is automated, the person handling your account may have no input on the decision reached. Overruling the third-party data may require a lot of documentation about your roof. This data should include date of installation, installer, name of shingle manufacturer, name of shingle product to allow verification of properties for this product. Many homeowners cannot produce this level of documentation on demand. Evaluating roofing shingles for your home The first consideration for roofing materials deals with appearance. Shingles are available in flat three-tab, architectural shingles that have an additional layer of material and architectural shingles that are intended to mimic the appearance of a wood shake roof or a slate roof. Based on the desired appearance, you move into varying price points for the shingles. A review of literature from a major shingle roofing manufacturer and the distinct types of shingles they offer and the variation in warranty, wind uplift, hail resistance and styles available are shown below. A previous article on roofing warranties discussed the typical terms in these warranties and how it impacts insurance claim handling. Many warranties depend on the roofer using all products from the manufacturer of the shingle. This can include underlayment, starter strips, hip, and ridge shingles. Warranties can also require a certified installer. Warranty terms may vary based on the price point of the shingle selected. Wind uplift is a significant performance point for your roof. The higher the roof uplift rating, the better your roof can resist shingle loss in a storm. While the building code has minimum requirements, a code review may not be conducted.  Many roofing projects are considered maintenance, so no building permit and related inspections and reviews are performed. Your agreement with the roofer may shift the responsibility of securing any needed permits to the owner. If this is the case, check with your local code official for their regulations. If there is no code review by the building official, you should ask for the highest wind uplift that is available for your chosen product. A higher wind uplift rating may be available using a six nail per shingle installation versus a four nail per shingle installation. Some shingles show two uplift speeds depending on installation processes. Ohio has a base wind uplift speed of 90 MPH. If you live in an area that is prone to hailstorms, we recommend installing impact-resistant shingles that are designed to withstand greater levels of impact. Impact-resistant shingles are evaluated and classified using the Underwriters Laboratory 2218 (UL 2218) steel ball test where a steel ball is dropped from a specified height onto an installed roofing shingle and inspected for any breaks or cracks. The highest possible rating is Class 4. To receive a Class 4 rating, a roofing shingle must withstand having a 2-inch steel ball dropped multiple times from a height of 20 feet. Using Class 4 impact resistant shingles helps to prevent or reduce the amount of damage from hail or other debris. Color Matching One common issue when a roof claim is being adjusted is the availability of shingles that are dimensionally and color consistent with the  existing roofing. A best practice is to secure a supply of the original roofing shingles and retain them for future repairs. You can specify a specific quantity such as 2 bundles in the bid for your roof. Having some additional shingles could make repair much easier in the future. Ask the shingle manufacturer about any shelf-life restrictions for their product and storage requirements. Different states have different rules regarding matching of exterior finishes. Some insurance carriers may offer a specific endorsement to provide funds for exterior matching of materials in the event of a claim. Documentation to be collected and retained There is a lot more to a shingle roof than appearance. You need to document and retain the following: Material specifications for all roofing components. This includes shingles, underlayment, starter strips, ridge and hip shingles, ventilators, and flashing. Date of installation Name of the installer and any certifications they hold in relation to your roofing materials. Proof of warranty registration You may need these details to appeal a third-party evaluation of your roof. The Driehaus Difference We track the underwriting and inspection practices of our insurance companies. We can help you select a company that will work with your specific roofing situation. We can also helps gather the data needed to get the best treatment from the insurance company for your roof. We can also assist in reviewing any contracts you may be considering for a roofing installation. We are focused on providing feedback on risk transfer and any insurance-related needs that may arise. Call us at 513-977-6860 or contact us via our website at www.driehausins.com . We want to be your insurance provider.