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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.

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.