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

Sprinkler systems and standpipe systems often have a fire pump as part of the water supply for the systems. If you have a fire pump as part of your fire protection system, you should know some basic facts to help you manage this important equipment. Fire pump or booster pump? A fire pump takes its water supply from a non-public source. This can be a river, pond, water storage tank or wellfield. The water supply must be able to support the fire pumps rated flow capacity. The supply must have an adequate volume of water to last for the duration of time in the fire protection system design. The duration can be between 30 minutes and 120 minutes. A fire pump is the sole source of water for the fire protection system. If your fire pump fails, you have no water supply for fire protection. A booster pump is a more common arrangement where the pump takes its water supply from the city water system. Duration is generally not an issue as the city supply is generally adequate for the volume of water required. The pump is used to boost the pressure from the water supply system. If the booster pump fails, you will still have city water pressure in the system. Your system will be deficient in water delivery, but some water may be delivered. Pump Ratings A pump for fire protection is rated for a specific flow rate in GPM at a particular pressure measured in PSI. A 1000 @ 60 pump will deliver 1,000 gallons per minute (GPM) at 60 pounds per square inch (PSI) of water pressure. The rating is a design element of the fire protection system and was selected at the time of the system’s installation. Pumps are also rated for the speed at which the pump operates in revolutions per minute (RPM). These three rating points are fixed, and the pump is tested to see that it matches the flow and pressure when operating at the design speed. Power Supply Fire protection pumps are generally powered by a diesel engine or an electric motor. In either case a controller is used to automatically start the pump when needed. The controller also has the ability to manually start the pump. Controllers have stop switches and disconnects to shut off the pump. The controllers and drivers of the fire pump must be listed for fire protection service. Diesel engines require a fuel supply that is adequate for the duration of the fire protection system water supply design. Since diesel pumps are routinely started and run for tests, the fuel supply must also be adequate to perform these tests. Fuel quality is important, and the fuel tank must be leak tight and have a level indicator to monitor fuel availability. Electric pumps have a controller that has start, stop, and test provisions. The electrical supply is designed to be resistant to fire damage and mechanical damage. If the power supply for the property is not considered reliable, a generator will be needed to support the fire pump. Some insurance rating tools penalize buildings that rely on an electric pump and that lack an emergency generator. Testing Fire pumps require routine testing to assure proper performance. NFPA 25, The Standard for Inspection, Testing and Maintenance of Water Based Fire Protection Systems, details the required testing. This document will highlight the weekly, monthly, and annual tests. Regardless of power supply an initial acceptance test is required to duplicate the fire pumps performance ratings and to run the pump under load for a period of time to allow evaluation of the mechanical conditions. Electric pumps must be tested monthly and operated for no less than 10 minutes. The pump must be started automatically. This can be done with no flow conditions A diesel pump should be operated weekly for no less than 30 minutes. This can be done with no flow condition. The pump must be started automatically. For both types of pumps an annual full flow pump test to verify operations and ratings of the pump. Accurate pump testing procedures are critical to monitoring the condition of a fire protection pump. Data should be recorded during these tests that include suction and discharge pressures observed. Some controllers have automatic testing and data recording features to automate this process. Annual flow tests should be compared to prior tests to verify pump performance has not degraded. What can affect a pump’s performance? Fire protection pumps are generally very reliable. There are some conditions that can adversely affect a pump’s performance. This list is only those conditions that are most common. NFPA 25 has an appendix dedicated to pump troubleshooting. For diesel pumps these commonly include: Poor battery maintenance that affects starting Poor fuel quality or quantity Lack of routine maintenance on the diesel engine itself, oil changes, cooling system and other mechanical parts For electric pumps the common issues include: Degraded or damaged electrical supply Loose or corroded electrical connections For either system there are common problem areas Controller maintenance and component failure in the controller that prevents automatic starts Mechanical failure of pump to driver connection due to lack of lubrication of misalignment. Degraded water supply that prevents pump from meeting rated flows Damage to or an obstruction in the pump itself The Driehaus Difference We want our clients to understand the basics of fire protection pumps and the required testing and maintenance that is required. This is a common source of recommendations from insurance carriers and deficiencies can adversely affect your fire insurance premiums. Call us at 513-977-6860 or contact us via our website at www.driehausins.com

Lithium-ion batteries have become the standard power source for most portable devices. The technology allows for a powerful power source in a smaller package. The batteries do not have the memory effect that prior rechargeable batteries had that diminished their lifespan. Lighter wight and greater power have made lithium ion the battery of choice. As no good deed goes unpunished, there is a downside to these batteries. They can present a very unique fire hazard that is hard to manage and produce a fire that is difficult to control. Battery Chemistry and Hazard A lithium-ion battery structure has an anode, and a cathode as does any battery. The passage of the lithium-ions between these two materials generates an electrical charge. The properties of lithium ion batteries allows superior power versus prior battery types. The flow of ions is in one direction when discharging and powering a device and the opposite direction when the battery is charging. The passage of these ions is done in an electrolyte solution that is commonly an organic solvent. The basic chemistry of the materials provides carbon, a fuel, oxygen contained in the anode and cathode materials and the electrolyte may be a flammable or combustible liquid. All of the ingredients for a sustained fire are present. When there is damage to the cell or the onboard electronics that manage the charging and discharging fail, the battery can enter a runaway chemical reaction that leads to an explosion or fire. Since all of the materials needed for combustion are present, the reaction is self-sustaining. The fire can be difficult to extinguish and may reignite easily after it appears to be extinguished. Fire protection methods for this hazard are still being developed. Lithium-Ion batteries are probably in your pocket (smartphone), on your desk (laptop), in your car (EV), in the mail (musical greeting cards) and possibly in your home or office building as an energy storage system for wind or solar power or an uninterruptible power supply for critical equipment. You cannot ignore this hazard. What to Do about this hazard The batteries become hazardous when they are physically damaged. Original testing by UL was “blunt nail test” to see if the cell was strong enough to resist physical damage. The second scenario is when the onboard circuitry that manages charging and discharging fails. Both of these hazards are manageable. UL testing and listing addresses both of these issues in manufacturing of the battery. Purchasing controls Buy devices and batteries that are UL Listed and from a reputable source. The market is full of unlisted cells that are cheap and therefore popular. You get what you pay for, so be a wise shopper when introducing this hazard into your life or home. Charging and Discharging Use the charger and cable that comes with your device. It is rated at the correct voltage and power output for the battery pack. If you are using other cables and charging devices make sure those devices and cables are UL listed. With the proliferation of USB charging systems, the quality of the cable becomes a paramount concern. Check the USB charger for a UL listing mark. Do not alter the cell arrangement to increase power output. Connecting cells in series to increase voltage or capacity is outside the original design of the battery and may cause a failure. Storage Since lithium-ion batteries can retain a charge for a long period, treat any battery as a charged battery. Do not allow battery terminals to contact one another or a grounded surface. Lithium-ion batteries are shipped in protective sleeves or packages to keep the terminals from contacting each other. Use this same method to store batteries. For devices with large batteries such as electric bikes and scooters, consider storing them in an area that is cut off from the balance of your facility with fire resistant construction and have fire detection equipment in this area. Prompt notification of a fire and the time purchased with fire resistant construction can make a difference in a fire event. Disposal Do not assume that the lithium-ion battery is dead. It can still retain energy and disposing of this type of battery where it could contact another battery or grounded surface can create a fire. Before depositing the batteries in a recycle bin, apply tape over the terminals to prevent contact. There are disposal points that accept lithium batteries. Check https://www.call2recycle.org/ for a local disposal site. Many Home Depot, Lowes and Staples stores participate in this program. Do not throw lithium-ion batteries into the trash. When the trash is compacted or processed the cells can be damaged and start a fire. This is becoming more frequent in landfills and recycling centers. The Driehaus Difference As fire experience data with these batteries and their devices continues to accumulate, there may be changes in building and safety codes to regulate this hazard. We also expect to see property insurers take notice of this new hazard. We follow these emerging trends so we can offer our clients sound risk management advice. Reach out to us for assistance and advice on your insurance and risk management programs. You can call us at 513-977-6860 or contact us via our website at www.driehauins.com We look forward to helping you with your insurance needs.

Every business is subjected to a barrage of cyber attacks every day. Regardless of your business size, your email, web site and network are being probed and tested for vulnerabilities. Small business owners often say they don’t have the time or resources to address these issues. Unfortunately, you do not have the choice, you can protect yourself or be a victim. Why would a bad actor target you? Here are some of the ways to become an attractive target. Email Scams Cyber attackers generate emails that ask for personal information, credit data, bank account information and passwords. These are called “Phishing” attacks and they are the most common type of cyber threat. You can attract these threats by not having an effective email screening and blocking process. The cybercriminal uses the same type of email software to send their phishing campaigns as a legitimate firm may use for customer solicitations or fundraising for a non-profit. The software can track how many emails are opened, forwarded, and how many links within the emails are clicked. This is a tool to measure the effectiveness of the campaign. If you have a small number of email addresses associated with your domain name, it is easy for your domain to have a high percentage of opens, forwards, and clicks. In a ten-person organization, if 3 people open or forward a message and 1 person clicks a link you have a 30% open rate and a 10% click rate. This is a major success for the cybercriminal. Your email addresses and domain are now identified as vulnerable and would be a more valuable target in the future. Since many of the phishing emails appear to come from the CEO or owner of the firm, getting a high open rate or click rate is not uncommon. Having good email screening discipline is critical and low to no cost as a safeguard. Teach your staff to mouse over the sender’s name to see their email address. If the email address is not what you expect to see, immediately block that sender. Do not forward the email to everyone and tell them it was a scam. You increase the open rate and forward rate for this attempt. If your internet service provider (ISP) has a security feature to report suspicious emails, use it. If the phony email was supposed to be from one of your vendors, alert them to the event. Ransomware Ransomware is the introduction of software in your network that encrypts the data and makes it unusable. The cybercriminal then offers to reverse the process for a payment. The bad actor may also threaten to release your data, including confidential and personal information if you do not pay. The keys to preventing a ransomware attack fall into low-cost efforts that should be part of your normal operations. Update your software. Operating systems have automatic functions to allow updates to be loaded automatically. Unless you have a dedicated IT department, use the automatic update features to keep your systems in the best protection status. If you have on-premises servers for files and email service, be sure you have the proper updates and security processes in place. Many small firms lack the IT expertise to manage these systems. Know your limitations and respect those exposures. Have an antivirus and anti-malware program in place. Use the automatic updates for this service to keep it current. Many of these products include automatic update screeners for your other software to keep it updated. If you have off-premises access to your data, use Multi Factor Authorization (MFA) to have a second layer of access control. MFA is becoming a mandatory feature for some cyber liability insurance providers. No MFA, no coverage. Resources If you have a cyber liability policy, the carrier may have resources for your use to help you protect yourself. Most cyber policies have information attached to the policy about support services available. A very comprehensive resource is provided by the US Government. The Cybersecurity & Infrastructure Security Agency (CISA) has screening tools, sample policies and screening tools that can be used. Visit www.cisa.gov for access to this information. The Driehaus Difference We want you to be successful and in reality, the amount of coverage available for cyber liability losses is not sufficient to cover all of the expenses of the event. We want our clients to make informed decisions about managing their exposures and implementing controls that are sustainable and affordable. Call us at 513-977-6860 to reach one of our staff members or contact us via our website www.driehausins.com to get in contact with us.

Your business may have responsibilities for complying with Commercial Motor Vehicle (CMV) regulations. The need for this is based on vehicle use, size and it can vary by state. This is a general look at United States Department of Transportation (USDOT) regulations. What is a CMV? The general requirements for motor carriers are found in Part 390 of the DOT regulation. In this section a CMV is defined as a vehicle having: A gross vehicle weight rating (GVWR) as a single unit or a combination unit or 10,001 pounds or more – or - Is used to transport more than 8 passengers, including the driver, for compensation – or - Is used to transport more than 16 people including the driver and is not used for compensated transport – or - Is used to transport any hazardous material that requires placarding Definition 1 can be a tripping point for vehicle owners that tow trailers behind pick-up trucks or other light trucks. The combined weight of the main vehicle and the weight of the trailer and load must be under 10,001 pounds or the vehicle is a commercial motor vehicle. Do not rely on the GVWR shown on the main vehicle data plate. Definitions 2 and 3 around transporting passengers makes the distinction between for hire transportation and transportation not for hire. Any for hire transportation has a much lower passenger count. The higher passenger count for non-commercial passenger transit would apply to any business or group using buses for their transportation. This can include schools, churches, clubs, and sports teams. The hazardous materials regulations specify what products are regulated and the quantities that trigger placarding. If you are transporting chemicals, you should review these regulations carefully. What does a CMV Require? Ownership or operation of a CMV will trigger certain obligations. The short list of these are as follows: You will need to file an MCS -150 form with information about your business and fleet with the DOT. This requires you to obtain a US DOT number. MCS-150 filing is required every two years. Your drivers will need to follow any regulations related to commercial drivers. This includes rules regarding use of cell phones and texting while driving. Pre-trip inspection rules also apply. Maintenance of an accident register for any vehicle accidents involving a fatality, bodily injury, disablement or requiring a tow-away. Vehicles must be properly marked with the legal name or trade name of the owner and the US DOT number. Drivers should have a DOT medical examination and a driver qualification file should be maintained. Even if you only operate within a single state, intrastate operations, you will need a US DOT number as most states use US DOT numbers for intrastate carriers. Commercial Drivers Licenses (CDL) Do not confuse the requirements for commercial motor vehicles with the requirements for a Commercial Driver’s License. These are two separate issues. Commercial drivers’ licenses are required based on the vehicle size and use. These can be summarized as follows: If the power unit of a combination vehicle exceeds 10,001 pounds and the combination GVWR is 26,001 pounds or greater, A single vehicle that has a GVWR of 26,001 pounds or greater, Is designed to transport 16 or more passengers including the driver Is used for the transportation of hazardous materials in quantity requiring placarding. There are different classes of CDL issued by the states. There are also endorsements that can be applied to the CDL to meet specific regulations. If you have vehicles that are of the size or use that require a CDL, you should review the DOT regulations carefully to assure compliance. Insurance and Regulations Complying with DOT regulations and having the proper procedures in place to meet these requirements is important to your insurance program. Failure to meet the legal minimums for operating your vehicles is a red flag to potential carriers. If the insurance carrier believes that you should have a DOT number and you do not, you must be prepared to address this missing data point. In many cases the insurer is relying on third party reports to make this call. You should ask for a copy of any of these reports, so you have the same information as the insurer. Failure to comply with regulations can be an aggravating factor in claims settlement. If you are responsible for causing an accident, and you are found not to meet the minimum requirements for safe operation, your claim gets more complicated and potentially more expensive. This is a self-inflicted wound that you can avoid. You can check your compliance status using an online resource. Safety and Fitness Electronic Records - SAFER is a portal that tracks fleet related data from the US DOT. You can see your safety rating as well as violation history. This is a tool used by most insurance companies to assess your fleet operations. Getting Help You do not have to become a DOT expert. Most insurance companies offer risk control advice, and many have fleet specialists to help you. You can also reach out to law enforcement agencies and ask for their assistance. Many law enforcement agencies will offer advice and consultation to help you avoid citations. The first step is knowing if you have questions. In the time of “Only buy what you need”, if you don’t know the question, you probably won’t ask. Reach out to us at 513-977-6860 or via the internet at www.driehausins.com We will be happy to help you.

Managing your Workers Compensation (WC) costs is a key risk management effort for any firm. This is a process that must be managed and thoughtfully implemented to be effective. One component of an effective Workers Compensation management program is having an Early Return to Work program. Here are some implementation considerations. EMR Your WC premiums are developed using employee classification codes, payrolls, and your Experience Modification Rate (EMR). A prior article described the function of your EMR and how it impacts WC premiums. Lowering your EMR can significantly reduce WC premiums. Implementing an Early Return to Work program is an effective way to limit WC claims dollars allocated to lost time (payroll to an injured employee while they are not working). Getting injured employees back to work quickly reduces loss dollars which discounts your EMR. Medical Provider Involvement The first element of the program is to have a relationship with a medical provider that supports early return to work and is aware of your program. Getting your medical provider involved immediately in all WC cases allows you and your insurer to manage the treatment for the worker. Using an occupational medical provider can make this process easier. These medical professionals have training and support staff that specialize in occupational medical care. Most large healthcare organizations have this type of practice available. You can also ask your WC insurer for assistance in identifying preferred providers. Insurance Carrier Involvement This program cannot be successful if the insurance company is not on board. You should make this a selection point when considering workers compensation carriers. Have this discussion before you purchase coverage. Case Management A WC case with restricted duty is not a set it and forget it event. Your medical provider and insurer must have a medical case management process. This provides ongoing follow up with the worker to manage their rehabilitation until they return to full duty. Early Return to Work is intended to be a short duration solution to avoid lost time injuries. It will not be effective without proper case management. Identify Early Return to Work Positions You cannot wait until you have an injury to decide to accommodate an early return to work case. You should identify what duties are available within you organization that can accommodate lifting restrictions, mobility restrictions or other medical restrictions. Most firms have tasks that bring value to the enterprise but can be done within a restricted job description. It is key for you to identify these opportunities and have job and physical demand descriptions defined so the medical provider is comfortable in returning the employee to work. Alternate Work Sites If you cannot accommodate restrictions, consider approaching a sheltered workshop in your community to serve as an alternate work site. Most of the sheltered workshops are experienced in dealing with restrictions and disability issues and may be able to accommodate your worker. This is a resource that must be identified in advance and have information available to your medical provider to allow assignment to return to work. Benefits of Early Return to Work It is in your interest as an employer to return workers to productive status as quickly as possible for obvious economic benefits. Having a program that also controls WC expenses by avoiding lost time injuries is an added incentive to implement this policy. Early Return to Work also benefits employees by keeping them engaged and involved. It can be difficult to get a worker back from disability if they are away from the workplace for an extended time. Avoiding the disability period keeps your employee involved, earning a full paycheck and shows your support for them. The program has benefits beyond WC cost control. The Driehaus Difference Selecting and qualifying an insurance company is not a task that most firms are comfortable undertaking. Your need to Have experience in dealing with the different carriers, their claims management practices, their risk control support, and the services they bring to the table. We understand the impact of medical care choices, return to work programs and medical case management on your insurance program and its cost structure. You need a professional resource to help you manage the full spectrum of WC risks and programs. Call us at 513-977-6860 to discuss your needs with our experienced insurance professionals. You can learn about our services and skills by visiting our website: www.driehausins.com. Reach out to us to get the professional assistance you deserve.

Subrogation is the process where an insurance carrier stands in the place of the insured and pursues a claim against a third party to recover claim payments that the carrier made to the insured. The underlying theory is that if the damages were caused by that third party, the insurer is entitled to recover those damages. Insurance companies have dedicated units to pursue subrogation and the recoveries are an important part of the finances of the carrier. Recoveries can benefit the insured by reducing their loss dollars related to a claim. There are times when the insured and a third party agree to not subrogate claims. This is often seen in real estate transactions and in some service agreements and contracts. This is often presented as a routine item and one that requires no action on behalf of the party signing this agreement. There are some items to consider when this is presented to you. Bilateral Agreement? Does the waiver of subrogation apply equally to each party? Do you both have the same amount of risk assumed in this agreement? If the waiver is unilateral in favor of the third party, what benefit are you receiving for assuming the additional risk? Without subrogation the cost of damages that are the fault of the other party will not be recovered. Carefully read the terms of the contract to determine if the waiver is bilateral or unilateral. Insurance Company Agreement Generally, insurance companies do not bar coverage when an insured waives it own right to recover against a third party. The insurance company may not agree to waive their rights to subrogate as it would violate the principle of indemnity. You do not want to find out that the carrier has language in their policy that restricts coverage in the event of a waiver of subrogation. To clarify this question, you can ask that the policy be endorsed with a waiver of subrogation endorsement that details the parties that the insured has agreed to waive their right to subrogate claims against. As this closes a potential recovery avenue for the insurance carrier, there may be a charge for this endorsement. The Driehaus Difference We have the knowledge of carrier coverage forms to know when a waiver of subrogation becomes an issue for a given insurance company. We can also help you review contracts, leases, and agreements to see that the proper insurance coverage is in place to satisfy those contractual agreements. This is not a topic that is easily covered in an online form. If you are not aware of the issues around waiver of subrogation, you will not know you need to confirm policy coverage. This is where a professional insurance advisor is your best protection. Call us at 513-977-6860 or contact us vis our website www.dreihausins.com to get professional assistance.

Fire extinguishers are present in all commercial occupancies and in most homes. Commercial vehicles are also equipped with portable fire extinguishers. Despite their widespread presence, most people have very little understanding about these first aid firefighting tools. If you need a fire extinguisher, you need the fire department! If a fire alarm system is present, activate the alarm and summon assistance. Evacuate the premises and conduct a head count to account for all occupants. If no alarm system is present dial 911, evacuate the premises and conduct a head count. All fire trucks have reverse, they do not have warp speed to move back in time to when you should have called. Classes of Fire Not all fires are created equally, so the extinguisher must be matched to the type of fire that is burning. The chart below shows fire classes, typical fuels and the pictograms used on fire extinguishers to identify their appropriate use. You should be familiar with the types of fuel present in your workplace and home. Compare the fuels present to the fire extinguishers present to be sure you have the correct extinguishers. The most common fire extinguishers are multipurpose dry chemical fire extinguishers. These are compatible with Class A, Class B and Class C fuels. There are special extinguishers for combustible metal (Class D) and for commercial cooking exposures (Class K). These extinguishers are for these fuels only. Class K extinguishers are used when a wet chemical fire suppression system is present in a kitchen. This agent is compatible with the wet chemical agent in the kitchen fire suppression system. Other types of extinguishers may degrade the effectiveness of the wet chemical system. Using a Fire Extinguisher Safely We will repeat the first rule of fire extinguisher use – Call the fire Department! The second rule is to be sure you have a clear escape route! If you have any doubts, evacuate! Inspection and Maintenance Fire extinguishers should be visually inspected monthly to confirm the pressure is adequate. An annual inspection by a professional service is needed to evaluate the shell and to check for any needed shell testing. Extinguishers are a pressure vessel and require periodic shell tests for integrity. Number and Spacing of Extinguishers The National Fire Protection Association publishes NFPA 10 the Standard for Portable Fire Extinguishers. This standard defines each location by hazard type and defines the proper size and distance between extinguishers. You can access this standard for free at www.NFPA.org The Driehaus Difference Fire extinguishers remain a top risk control recommendation from insurance carriers. Contact us to help you understand the details behind this often-overlooked tool. We suggest you ask your local fire department if they can help you with hands on extinguisher training. Your fire extinguisher service firm is another source of training. Contact us at 513-977-6860 or via our website www.driehausins.com for any assistance you may require.

The recent announcements by State Farm and Allstate that they have temporarily suspended writing new property insurance risks in California was made quietly. Jake from State Farm was not featured in this message nor was Allstate’s “Mayhem” character. The shift to pause writing property insurance did not affect the appetite of the carriers for the more profitable personal auto insurance policies. To be fair State Farm and Allstate are not alone in having second thoughts about California property, other carriers have opted for price increases versus suspending new business acquisition. The factors cited by the carriers in making this decision include climate change challenges, higher reinsurance costs affecting the entire insurance industry, and global inflation. These factors are not unique to California. Wildfire Frequency A report from the National Fire Protection Association in 2018, Brush, Grass, and Forest Fires, indicated that there was an average of 840 brush grass and forest fires reported every day. This accounts for 23% of the responses for local fire departments. This type of fire is generally small in size but 6% of all fires consume more than 10 acres of land. 12% of forest fires spread over 10 acres. This is based on data from 2011- 2015 The Southeast region that includes Kentucky accounts for 53% of all wildfire incidents. The West accounts for 20% of wildfires. The Northeast accounts for 27% of the incidents. Recent incidents around Natural Bridge State Park in Kentucky are a local example of the hazards. On June 9, 2023, there were wildfires burning in Arizona, Florida, Idaho, New Mexico, Pennsylvania and Washington. Canadian wildfires have contributed to air quality emergencies and flight delays across the Northeast. This data is for the period of January to June 9 in each year. Wildfire Data and Insurance Underwriting The level of data available about the wildfire problem has grown immensely. Models about fire growth and hazards were once limited to the west Coast and used by regional agencies to plan responses and mitigation efforts. As fire problem grew, the need for data also grew and the United States Government stepped up their efforts to provide data. www.wildfire.gov is a key site for data on the wildfire exposures. Companies leverage this data to create “Wildfire Scores” that can be used by insurance companies to estimate their exposure. As the use of these scores has spread across the country, the knowledge about how they are developed and what they mean has become more opaque. The use of “scores” is of particular value to insurance carriers. They can use the scores in their pricing and risk selection models that have replaced many traditional underwriting decisions. Reinsurance costs Our report on 2023 Property Insurance Trends discussed the trends in catastrophes that affect property insurance. Catastrophes no longer are geographically centered on hurricanes and earthquakes. Floods, wildfire, hail, drought, and flood all impact this part of the insurance market. As the wildfire exposure is more frequently recognized and documented, the reinsurers will also use those data elements in forecasting their expected loss number and related premiums. Inflation The cost to rebuild has been a significant factor in insurance company pricing decisions. Double digit construction inflation has been the norm since the pandemic. This additional pressure means that wildfire losses are also impacted by the construction inflation. 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. Call us at 513-977-6860 or contact us via our website at www.driehausins.com

As summer rolls on the heat index numbers will creep into the danger zone for heat stress emergencies. Heat stress is an equal opportunity hazard that affects anyone who is exposed to excess heat and is being physically active in that environment. Heat stress is an occupational hazard, but the exposure extends to any group exposed to high heat conditions. This includes family picnics, youth events and outdoor festivals and celebrations. Some groups are more susceptible to experiencing heat stress. These groups include underlying medical conditions, lack of physical fitness, previous episodes of heat related illness, alcohol consumption and certain medication. People who are new to being in warm environments are at increased risk of heat-related illness. Recognizing Heat Related Illness In most cases heat related emergencies are a progressive set of symptoms. The table below shows the type of heat related illness and the corresponding symptoms starting with the first stages of the exposure. First Aid for Heat Related Illness First aid for heat-related illness involves the following principles: Take the affected person to a cooler area (e.g., shade or air conditioning). Cool the person immediately. Use active cooling techniques such as: Immerse the worker in cold water or an ice bath. Create the ice bath by placing all of the available ice into a large container with water, standard practice in sports. This is the best method to cool people rapidly in an emergency. Remove outer layers of clothing, especially heavy protective clothing. Place ice or cold wet towels on the head, neck, trunk, armpits, and groin. Use fans to circulate air around the worker. Never leave a person with heat-related illness alone. The illness can rapidly become worse. Stay with the person When in doubt, call 911! Confusion, slurred speech, or unconsciousness are signs of heat stroke. When these types of symptoms are present, call 911 immediately and cool the person with ice or cold water until help arrives. Prevention of Heat Related Illness – Rest water and shade Water Be sure to provide cool water drink. Proper hydration is essential to prevent heat-related illness. For those working two hours or more, also provide access to additional fluids that contain electrolytes. For short jobs, cool potable water is sufficient. Encourage your group to drink at least one cup (8 ounces) of water every 20 minutes while working in the heat, not just if they are thirsty. For events or activities that last more than two hours, you should provide electrolyte-containing beverages such as sports drinks. People lose salt and other electrolytes when they sweat. Substantial loss of electrolytes can cause muscle cramps and other dangerous health problems. Water cannot replace electrolytes; other types of beverages are needed. Water or other fluids provided should not only be cool, but should also be provided in a location that is familiar, easy to access, and in sufficient quantity for the duration of the event. Do not rely on feeling thirsty to prompt them to drink. Remind people to drink on a regular basis to maintain hydration throughout the activity. Rest Breaks should last long enough for people to recover from the heat. How long is long enough? That depends on several factors including environmental heat (WBGT) and the physical activity level, as well as the individual personal risk factors. The location of the breaks also matters. If people rest in a cooler location, they will be ready to resume activity more quickly. Breaks should last longer if there is no cool location for people to rest. Shade Workers should be given a cool location where they can take their breaks and recover from the heat. Outdoors, this might mean a shady area, an air-conditioned vehicle, a nearby building or tent, or an area with fans and misting devices. Indoors, workers should be allowed to rest in a cool or air-conditioned area away from heat sources such as ovens and furnaces. The Driehaus Difference We recommend that you visit the OSHA website for more information about heat related illness. You can reach us at 513-977-6860 for more insurance and risk management information. Visit our website at www.driehausins.com for additional information and contact points.

Most homeowners’ insurance policies focus on the replacement value of the home itself. There are numerous tools used by insurance companies to estimate the replacement cost of a home. Many of these tools are now being enhanced with artificial intelligence to allow satellite images and orthogonal images to determine the number of stories, square footage, and complexity of the foundation shape as key elements for estimating values. With the recent high inflation trends for construction costs, these efforts are a primary focus of the insurance companies. Our article on Insurance to Value details this process. Contents values are a second thought in many cases. The insurance company assigns as percentage of your building value as contents values. There is no data gathering effort to validate these numbers. To shield themselves against litigation around inadequate values, many insurers now banket the building and contents into a single limit. Since the vast majority of claims are partial losses, this means that any value issues are minimized. This process is considered user friendly, and most people don’t give it a second thought. You see a large number and assume that all is covered. Special Limits of Liability Within your homeowner insurance policy there are a number of items in your contents that have a sublimit. These are limits of coverage that limit the dollar amount of coverage for specific types of property. The table below shows limits of coverage for a typical homeowner policy. You should carefully evaluate your personal property to see if the above sub-limits are adequate for your personal belongings. If you have more values exposed to loss than the policy provides, you need to ask for additional coverage. Form Differences Also look carefully at which form is used for your homeowner’s policy. The coverage offered vary depending on the perils covered for any of these items. We have written articles on the differing policy forms and the terms that affect contents coverage in our Homeowner forms article and our article on Jewelry Floaters. The difference is often between coverage for loss and mysterious disappearance or coverage for only theft for jewelry, firearms and other property with special limits of liability. Value Creep There is a tendency in the insurance business to treat the floater policy limits as a “set it and forget it” type of number. The flaw in this approach is that people tend to accumulate more stuff as times go past. It is not uncommon for a single jet-ski to have a second join the family. New pieces of jewelry are acquired, and any number of other collectibles are added. The insurance companies do not help with this process as they do not attach the actual list of items to the policy or renewal documents. You must remember additions and deletions and communicate that to your agent. Inflation also affects these items. A recent interaction with a customer revealed that over the past five years the value of the firearms in his collection has increased by 30%. Additional jewelry acquired added 20% to the limit. Accurate values for these items are critical as many forms have a specific limit per item, the value you specify. If the value of the item has appreciated, you need to raise your item limit of coverage to match that higher value. Inventory One of the most valuable processes you can do to protect yourself against loss is to have an accurate inventory of your personal belongings. Cell phone cameras and video have simplified this process. You can go through your home and record the overall contents of the room, and then record the contents of each drawer, shelf, or closet in that room. Save this to your cloud account so you can easily retrieve it when needed. By making this record, at time of loss you have a tool that can help you recreate the contents and have a record of what was present. If you want to go into greater detail, there are Excel templates that can be used for building a home inventory. The Driehaus Difference We understand that every home is different. The replacement costs can vary and the need for content coverage is no different. If you are not aware of the limits specified for certain property, you would not know you need to schedule this coverage. We know these limitations and will ask the second level questions that will tailor the coverage to your needs. We take the time to get to know you and to understand how insurance fits in with your life. Call us at 513-977-6860 or contact via our website, www.driehausins.com. We look forward to help you with your insurance needs.

This question has been the root of more discussions in the property insurance industry than you can imagine. Property insurers are focused on making sure that building valuations are current and meet their requirements. There are a number of tools available for use by insurers. Our article on Insurance to Value discuss the process and the data used. We identified in our article on that values were going to be a key evaluation point for carriers. The second part to your property insurance program is the value established for Business Personal Property which includes all the contents of your building. There are no recognized tools for setting these values which often leads to insurance limits that do not reflect the true value of your business contents. Here are some thoughts to consider when evaluating the limit you choose for contents coverage. Asset Log Data Many firms have an asset log used to calculate depreciation on equipment, tools, and fixtures. This is an excellent starting point for identifying the items that need insurance. The question is are the values you report to the insurance company the actual replacement costs or the depreciated costs? If the terms of your policy are replacement cost coverage, the value should be replacement cost. If you have a policy with actual cash value terms, then the depreciated values are probably accurate. Recognize the limitations of your asset tracking system. Some firms establish a minimum value to report on the asset log. Items below this value are not in the system. This may leave a large number of items that are not on your asset log. Contractual Obligations If you take on the care custody and control of customer goods, fixtures, tooling, or raw materials, you may have a contractual obligation to provide property insurance for these items. This value should be shown as “Property of Others” on your insurance policy. Read your contracts carefully to see if there are specific deductible or coverage form requirements. In some cases, it is easier to have these values on a separate property floater so you can easily track the costs and manage any schedule of values related to these contractual requirements. A second source of insurance obligations can be your leasing or renting equipment from others. These contracts typically require insurance protection for the leasing or rental agent. Replacement time frame The time it takes to replace items should be considered during the review of your contents. This can be a factor in determining your exposure to business interruption if key equipment has a long replacement time. Would you replace existing equipment with the same type, or would you change to an alternate technology? Some firms believe that the replacement equipment will be less expensive, so they can carry a lower value. This may work for a total loss, but most losses are partial losses so the equipment would be repaired versus replaced. If you choose not to repair the damaged equipment, you’d only receive an actual cash value settlement from the insurer. This depreciated amount should be compared to the cost of the new technology. Contents Creep Most firms acquire their business personal property over time. While large purchases make the asset log and depreciation schedule, many items are added, and no formal reconciliation is done to catch those values. Doing an inventory of your contents is a significant investment of time and effort. We suggest that you do this process on a scheduled basis at least every five years. This allows a reasonable time frame for additions and deletions to be in the memory banks. If you are new in business this is more important as your business personal property may grow every year. Also consider equipment and tools that are off premises at job sites or on or in vehicles. Equipment that is assigned to remote workers should also be considered. You may need a floater policy to cover values that are away from your premises. The Driehaus Difference We want to be sure you have the right coverage, the right values, and the right forms for your insurance program. If you are not knowledgeable in the difference in valuation clauses, location versus floater policies and loss settlement clauses you need an experienced insurance expert to guide you. Our staff has decades of experience, and we want to share our knowledge and expertise to make your insurance program the best fit for your business. Contact us by calling our office at 513-977-6860 or use any of the contact tools at www.driehausins.com