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Most of us have a personal auto policy. We may know the premium we pay,. But do you know what coverage is provided? In the time of “only pay for what you need “ you must know about what is provided and understand what you need. Compulsory Insurance Laws In most states there is a requirement that the driver maintain liability insurance on their automobile. You are generally buying auto insurance because the law requires it be in place. Some states tie proof of insurance into the registration process for license plates. These laws have proven to be effective at reducing the number of uninsured vehicles on the road. State Minimum Liability Limits One feature of state required insurance is that the laws dictate what are the minimum acceptable liability limits. These limits are generally low and not adequate to protect you in the event of an at fault accident. Ohio, Kentucky, and Indiana require minimum liability limits of $25,000 per person, $50,000 per accident and $25,000 property damage liability. These limits would not cover the cost of someone else’s vehicle and if serious injuries are involved the liability limit would be quickly exhausted. While these limits are legal, they are not sufficient for protecting your interests. Our agency will not quote these limits for our customers. No Fault Insurance Some states, including Kentucky have adopted “no fault” laws that are intended to reduce the number of lawsuits related to auto mobile claims. Under no fault laws your insurance responds to your losses under medical payments. No fault laws allow litigation to be pursued in the damages exceed a specific limit of level in the law. In Kentucky the tort threshold is $1,000 in medical expense, a broken bone, permanent disfigurement, permanent injury or death. The low number for medical expenses makes the no fault provisions easily bypassed. Uninsured / Underinsured Motorists Despite compulsory insurance laws, there are people who do not have insurance. You can purchase uninsured motorist (UM) coverage to protect you in the event that an uninsured driver is at fault for your accident. A more common exposure is that the other driver has low limits of insurance, and the damages exceed their limits of insurance. In this case you can purchase Underinsured Insured Motorist (UIM) insurance to protect you from this event. Be sure to include property damage with the liability coverage. UM and UIM are not legally required in Ohio, Kentucky, or Indiana. You select the limit of coverage you desire to carry for these coverages. Limits and your Umbrella Most clients need an umbrella policy to extend their liability protection. The umbrella carrier will have minimum limits for their underlying auto policy. You should make sure that your umbrella extends to the UM and UIM coverages for more comprehensive coverage. Your Covered Auto The personal auto policy can be summarized by “insurance follows the vehicle”. In this case knowing what vehicles are insured is an important consideration. The typical personal auto policy provides insurance coverage for the following vehicles: Vehicles shown on the declarations page – these are the vehicles you have reported to the insurance company. Newly Acquired Autos – This coverage applies to passenger vehicles. Coverage for trucks with a gross vehicle wight of 10,000 pounds may not be automatic. These vehicles will be a covered for liability when they are acquired. The policy requires you to notify the insurer and add the vehicle to the declarations within 14 days. Collision and comprehensive coverage will apply if you have these coverages in effect on your policy. The 14-day notice period applies to adding the vehicle to your policy. If you have no collision coverage in effect at the time of vehicle acquisition, the notification period can be reduced to 4 days. Owned Trailers – are vehicles designed to be towed by a passenger vehicle, pick up or van. You must own the trailer for coverage to apply. Who is insured? The auto policy covers the named insured and any resident family members using any auto. This means the insurance company will ask for the driver data for household members who may use a vehicle. The drivers are subject to underwriting review and age, experience and driving record are part of the underwriting and pricing process. Drivers with poor records can be excluded from coverage by the insurance carrier. Failure to report drivers to avoid the underwriting process may be considered a material misrepresentation and prompt a policy cancellation. Coverage follows the car, so someone using the vehicle with your permission is covered by the policy. Coverage extends to organizations that may be held liable for auto accidents. This may apply to an employer if using your vehicle for business or an organization for who you volunteer. The Driehaus Difference Your personal auto policy requires an understanding of you family, your risk tolerance and how to structure this policy within your total insurance package. You should not compare auto insurance solely on price. Unless you know the terms, conditions, deductibles and limits for each coverage you have only one fact in hand. We work hard to create a comprehensive insurance package that has all of the parts working together to provide you comprehensive coverage. Call us at 513-977-6860 or contact us on the internet via our website www.driehausins.com.

Commercial general liability and commercial auto policies typically have an occurrence limit of $1 million. If you find that you need additional liability protection, an umbrella policy is often the most efficient tool for providing this need. When do you need an Umbrella? Contracts and Agreements Contracts and leases may have requirements to carry a higher liability limit than $1 million per occurrence . The risk transfer and insurance provisions within business agreements often trigger the need for higher liability limits. Read before you sign the agreement to be sure you have adequate coverage for the contract. Assets Exposed The growth of your personal or business assets may trigger the need for higher liability limits to protect your interests. As your business grows, it has greater assets that are exposed to a loss. You need to match your insurance protection to this exposure. Specific Exposures You may have activities, products or services that have an inherent hazard of serious loss. The potential judgment in these cases can be extremely high. You need to adequately protect yourself from a large jury verdict. Some excess liability exposures include pools, playgrounds and other recreational exposures. High severity injury from a product liability event is also a common driver for umbrella coverage. What does the Umbrella Cover? Umbrella policies are excess liability policies. The do not offer any additional property insurance protection. They are designed to offer additional liability limits and are typically over your general liability and automobile coverages. The primary qualifier for umbrella coverage is that the underlying policies have limits that are acceptable to the umbrella carrier and the underlying insurance company is acceptable to the umbrella carrier. If you have additional liability policies such as professional coverage, or specific endorsements for exposures such as sexual molestation, you need to confirm that the umbrella will cover these additional coverages. Umbrella insurance can applied to your automobile liability policy. This is subject to the underlying limits and carrier being acceptable to the umbrella company. Consider having your umbrella cover your Uninsured and Under-insured liability exposures. This can protect you from a devastating claim when the other party has liability but limited resources. Policy Structure The commercial umbrella policy will have a list of underlying policies shown on the declarations page. Carefully review this information to be sure that the expected liability policies are present. The umbrella policy can be a “follow form” product that mirrors the coverage terms and conditions of the underlying insurance policies and adds additional dollars to the coverage. If the umbrella is from the same insurance company as the underlying policies, this is the most common arrangement. If the umbrella is not from the same insurance carrier, it may have terms and conditions within the umbrella policy that are different from the underlying policies. This is common when seeking an umbrella over professional liability policies or other specific exposure related liability coverages. This is when you need an insurance professional to analyze the coverages and make sure you have what you expect. The Driehaus Difference Protecting your business is our passion. We have the experience and product knowledge to properly analyze and place your umbrella coverages. Excess liability has twists and turns that must be carefully navigated to get you to the right place. Reach out to us by phone, 513-977-6860 or on the internet at www.driehausins.com for a professional insurance consultation.

General liability insurance protects you from claims that result from property damage or bodily injury. If the cause of the claim is a slip and fall, the coverage is obvious. If the claim is related to a decision you made, a design you offered, a calculation you performed or an interpretation of information you provided, the liability is not as clear. In these cases, your professional opinion or skill is the focus of the claim. The traditional areas of professional insurance coverage cover engineers, architects, medical providers, attorneys, accountants, consultants, and similar professions. The professional exposure may extend to other areas such as building contractors who offer design services, manufacturers who design products, repair processes that require a redesign of re-engineering of a product. In these cases, you are exercising professional judgements and those judgements can be the basis for a claim. If you are required to have a specific license or carry a certification, those activities may be considered a professional exposure. General Liability policies do not automatically exclude coverage for professional services. When an insurance company wants to exclude professional services, they attach an endorsement to the policy to make this exclusion. Some companies may include this endorsement as a matter of course, others may apply it based on the exposures reported. When you review your insurance program, look at the list of forms attached to your policy. This is where you would find the exclusion form noted. If you have a professional exposure, you need to have a professional liability policy added to your insurance program. The policies for these exposures are designed to address the specific issues related to your profession. There is no one size fits all program for this exposure. Policy Terms and Conditions Claims made vs. Occurrence The first major difference for many professional liability insurance policies are they are “claims made” coverage forms. A typical GL policy is an “occurrence” form. An occurrence policy has lifetime coverage for the incidents that occur during a policy period, regardless of when the claim is reported. A claims-made policy only covers incidents that happen and are reported within the policy's time frame, unless a 'tail' is purchased. The “tail” coverage allows claims for incidents in the past. This is a critical difference and the costs to obtain tail coverage can be significant. Lack of a tail cover can result in no coverage for a loss. Covered Operations Professional liability policies declaration pages contain language that limits the policy to your professional practice. There are profession specific coverage forms; lawyers, architects, engineers, accountants, that reflect the norms of practice for that profession. Be sure to evaluate your work and the coverage limitations that may be present. Does the description of your operations on the declarations page cover what you do? Claims Settlement A typical General Liability policy allows the insurance carrier to settle a claim at their discretion. This allows the carrier control over the claim process. Since professional claims have a more personal impact on the insured, the insured has more control over the settlement of the claim. The carrier can exert control by including a “hammer clause.” This clause states that if the insured declines to agree to a settlement and the ultimate settlement is above what was rejected, the insured will pay a set percentage of that difference. This is a condition that you must identify and understand to properly assess coverage. Defense Costs All policies provide defense costs. The difference is that in some policies the defense costs are “within” the limit of insurance. This means that the dollars to pay the claim are eroded by the defense expenses. Since defense costs can be significant, you should know if your defense costs are considered to be inside the limits of your policy. Excess Liability Coverage / Primary Limits Your commercial umbrella may or may not extend over your professional insurance. You may need to buy higher primary insurance limits or a separate excess policy over your professional exposures. Do not assume that your umbrella policy will cover professional exposures. The Driehaus Difference The terms and conditions of professional liability insurance are not your primary concern or interest. You are interested in your customers and clients. We understand the insurance products that would protect you and we can craft that coverage to suit your situation. This is not a simple process and requires additional information, special applications and knowing how to fit this into your overall program. Call us at 513-977-6860 or contact us via the internet at www.driehausins.com to get started on your professional liability program.

Updated 4/21/2022 with new Ohio BVM services link Virtually every business needs cars or trucks to conduct their business. As auto accidents are the most frequent commercial insurance claim, you should also have a fleet safety policy to define expectations, set standards and have accountability for your results. This is a short recap of the needed elements. Vehicle use The first choice to make is, what is appropriate use of company owned vehicles? Do you allow personal use of the vehicles? If yes, then you are assuming a greater exposure to loss as the vehicle will be on the road more frequently. If you limit the usage to business use only, this can be a consideration for employees who may have been accustomed to personal use of a company car. You can make a case for either position, but the vehicle use should be clearly identified. This is not a rating point for most auto policies, but a common underwriting question. Rules for vehicle use such as, no off road, no towing or other restrictions that you want to apply should be included in the vehicle use part of your fleet safety program. Authorized Drivers Who is an authorized driver? If you permit personal use of vehicles are spouses or children permitted to use the company vehicle? Your insurance company will ask for a drivers list. A best practice is to maintain a drivers list that includes full name, date of birth, license number, state of issue and expiration date. This will allow you to alert drivers whose licenses may be ready to expire. In the COVID-19 era, some states stopped sending expiration notices to drivers. Motor Vehicle Records - MVR The driving history is a primary point of driver reviews and qualification for insurance purposes. It should also be a point of evaluation that the business owns and performs for itself. If you rely on your insurance agent or company to run MVRs for you, you are not managing your own exposures. The insurer may run all or a sample of the drivers’ data for motor vehicle record screening. Insurance companies and agents will not provide copies of MVR reports due to privacy issues. You should develop an MVR review standard and use that to qualify drivers. Having your own MVR standard allows you to establish expectations for behaviors and performance. It allows you to make objective decisions on driver qualification. Insurance carriers can offer sample driver qualification standards for you to use as a baseline. MVRS should be obtained before assigning driving duties and annually thereafter. For drivers that require DOT driver files, there is an annual requirement for a driver review that must be documented. Not having established MVR standards can expose the employer to a claim of negligent entrustment. You gave a driver with a poor record access to a vehicle and a loss occurred. MVR Online access There is online access to MVR data for our local states. Ohio - https://bmvonline.dps.ohio.gov/ You can get a two-year MVR for free and a three-year MVR for a small fee. Kentucky - https://secure.kentucky.gov/dhronline This is a three-year record and costs $5.50 Indiana - https://www.in.gov/bmv/resources/driver-record/ You can create an account to see your own driving record. For employers who conduct background investigations, the MVR can be part of that process. Driver Qualifications For DOT regulated fleets there are medical evaluation requirements, reference checks and other driver qualification rules. Other non-regulated fleets may have experience requirements to be a qualified driver. These should be documented and communicate to your drivers. Vehicle Maintenance and Inspection Your policy should outline procedures for vehicle maintenance. The frequency and who will perform the services should be identified. Records of the vehicle maintenance should be maintained for each vehicle. For pool vehicles or units without a specific driver, make allowances for these vehicles to be inspected and maintained. Company vehicles should be inspected to verify condition and maintenance. This can also identify any unreported damage that has occurred. The inspections should be documented for each vehicle. There are DOT requirements for annual vehicle inspections by certified DOT providers that must be performed. DOT fleets also have the responsibility of performing pre-trip and post-trip inspections. Accident Reporting You should have a clear policy on accident reporting. Who is to be notified and when are police reports required? Accident kits with accident report templates are a valuable tool for helping a driver in this high stress time. Encourage cell phone photos of the accident scene and damage. Promptly reporting the claim to your insurance company will help the insurer manage the claim. DOT fleets are required to maintain an accident register for all accidents that meet DOT reportability standards. Defensive Driving Your fleet policy should endorse the concept of defensive driving and accident avoidance as a goal for your drivers. This seems like an obvious point, but it can be important in managing aggressive driver behavior that may be reported or observed. Insurance companies and multiple government agencies have materials on defensive driving that can be used as an ongoing messaging program for your drivers. Distracted Driving You need a clear policy that bans texting while driving and limits cell phone use while driving. Texting is simply too dangerous to consider a safe practice. Research has shown that hand-off cell phone use is not the panacea. The level of distraction from cell phone use is the intensity or complexity of the call. The best practice is to require drivers to focus their attention on driving and not allow texting or cell phone use. There are DOT regulations to this effect for DOT regulated fleets. Hired and Non Owned Vehicles Reimbursing employees to use their own vehicles for business does not mean you do not need a fleet safety plan. The driver qualification, MVR standards, accident reporting, vehicle inspections, defensive driving and distracted driving polices apply regardless of vehicle ownership. Driving is part of the employee responsibility, and you have a duty to manage that activity. The last level of risk management for hired and non-owned vehicles is having the owner prove they are carrying adequate levels of automobile insurance. You require minimum limits such as $100,000/ $300,000 limits as the minimum acceptable for your firm. This insulates you from minor events that occur. Telematics Technology offers fleet and business owners the ability to monitor vehicle use and driver behavior with ease and precision. Telematics can identify use patterns, operating areas and driver behaviors around speed, hard maneuvering, and driver distraction. Most insurance companies offer a discount for use of these services, and many have vendors aligned with their offerings. A good fleet safety plan that includes telematics has a higher success potential than one that does not leverage technology. The Driehaus Difference We understand the needs for business to have policies and procedures that support their overall operations and risk management plans. Ask us for help in reviewing or developing a fleet safety plan. Call us at 513-977-6860 or contact us via our web site at www.driehausins.com

Coverage for Your Additional All Terrain Vehicles Many clients have acquired all terrain vehicles, golf carts, go carts and even miniature vehicles used by their children. While all of these are designed to be fun and entertaining, you need to recognize that like any vehicle, the use can result in an accident or loss. Standard homeowner’s policies may limit the coverage for these types of vehicles to your premises. This does not fit with off road use, hunting or fishing or use within your neighborhood. Standard automobile policies do not cover vehicles that are not intended or licensed for road use. You would have no liability coverage for these vehicles and no coverage for damage to the vehicle. There are endorsements available from most insurance carriers to fill these gaps in your coverage. It is important that you discuss your ownership and use of these types of vehicles with your agent to be sure they tailor the policy to your needs. Many dealers offer to include insurance with their sales and financing agreement. You need to be a careful buyer when relying on this source for your insurance. First understand if the coverage is for property damage only. This coverage protects the interests of the financing entity from damage to their collateral. If the insurance program does include liability, what limits are offered? Some coverages offer a low liability limit, mirroring state vehicle liability minimum limits. This may leave you significantly underinsured. The liability limit and the carrier of the insurance is also important to consider when you have a personal umbrella policy. If the recreational vehicle policy is not included as an underlying policy for your umbrella, you will lack this layer of protection. The Driehaus Difference We may ask you more questions about your recreational vehicles and their uses than you expect. We are not prying into your life, but we know that insurance gaps exist around these items, and we tailor your coverage to protect you. We make sure the coverage is properly placed to fit into your total insurance program. Call us at 513-977-6860 or contact via our web site www.driehausins.com. We want to be your insurance resource.

We all engage in either providing services to others or engaging others to provide services to us. These events routinely involve a transfer of risk between the parties and you need to have a clear understanding of what is involved. We will try to summarize the key points to consider. Written Agreement Risk risk transfer must be within a written agreement. This can be a contract, a sales agreement, lease, rental agreement, or purchase order. Most insurance policies will not recognize a transfer of risk without a written agreement. This is the first step in the process. The written agreement should specify that any terms and conditions between the two parties should also apply to all primary subcontractors and their secondary subcontractors involved in the transaction. Hold Harmless and Indemnification The written agreement should include a hold harmless and indemnification agreement between the parties. There are three types of hold harmless statements. The limited hold harmless protects the other party form the sole negligence of the other party. An intermediate agreement allows for shared negligence between the parties. A broad form hold harmless agreement has one party assuming the liability for the other party’s negligence. This broad form agreement may not be enforceable in some jurisdictions. Once you agree upon the level of hold harmless language, there is an agreement that one party will indemnify or protect the other party. This statement will include the types of losses and damages that are included in the indemnification agreement. Insurance Requirements In most cases the financial protection in the indemnification clause will be provided via an insurance policy. Here are some of items to review in the insurance portion of the agreement. General Liability If the other party’s insurance program is required to protect you, additional insured status should be required. You should be named and included as additional insured on their General Liability policy. If you are offering to protect someone, you would name that party as an additional insured on your policy. If you are being named as an additional insured, you should request insurance limits that mirror your own limits and request a "Certificate of Insurance" evidencing the limits and listing you as an additional insured. . Automobile If the service includes the provider driving to your property, then ask for proof of automobile liability insurance. This will protect you from an automobile accident on your premises. Limits requested should mirror your own limits. Workers Compensation Workers Compensation insurance is needed for the service provider’s employees. Statutory limits for Workers Compensation are required. The Employers liability limit should mirror your limit. Builders Risk / Installation Floater If there is a need to provide property insurance for goods being installed or the building materials for a project, a builder’s risk or installation floater policy should be in force. This policy can be obtained by either party, but the limits should be adequate to protect the interests of both parties involved. The Driehaus Difference Risk transfer is not the first thought when starting a project or engaging a service provider. We assist our clients in meeting the insurance requirements for projects they are working on and also to secure the right coverages from their service providers and contractors. Your insurance program can be structured to streamline the administrative costs and expenses related to risk transfer. Ask us for our assistance and advice. You can reach us on the internet at www.driehausins.com or by phone 513-977-6860

Thanks to the National Highway Traffic Safety Administration for these winter driving tips Tires As the outside temperature drops, so does tire inflation pressure. Make sure each tire is filled to the vehicle manufacturer’s recommended inflation pressure, which is in your owner’s manual and on a label located on the driver’s side door frame. Do not inflate your tires to the pressure listed on the tire itself. That number is the maximum pressure the tire can hold, not the recommended pressure for your vehicle. Car Seats In colder weather, parents typically dress their children in winter coats. But it is important to know that heavy coats can interfere with the proper harness fit on a child in a car seat. When your child will be secured in a car seat, pick thin, warm layers, and place blankets or coats around your child after the harness is snug and secure for extra warmth. Batteries When the temperature drops, so does battery power. In wintry weather, gasoline and diesel engines take more battery power to start, and electric and hybrid-electric vehicles’ driving range can be reduced. Have a mechanic check your battery, charging system, belts, and for any other needed repairs or replacements. Lights Check your headlights, brake lights, turn signals, emergency flashers and interior lights. Be sure to also check your trailer brake lights and turn signals, if necessary. Windshield Wipers You can quickly go through a lot of windshield wiper fluid in a single snowstorm. Make sure your vehicle’s reservoir is full of high-quality “winter” fluid with deicer before winter weather hits. Make sure defrosters and all windshield wipers work and replace any worn blades. Cooling System Make sure you have enough coolant in your vehicle, and that it meets the manufacturer’s specifications. See your vehicle owner’s manual for recommendations. Check the cooling system for leaks, test the coolant, and drain or replace the old coolant. Stock Your Vehicle Carry items in your vehicle to handle common winter driving-related tasks, and supplies you might need in an emergency, including: a snow shovel, broom, and ice scraper; abrasive material (sand or kitty litter), in case your vehicle gets stuck in the snow; jumper cables, flashlight, and warning devices (flares and emergency markers); blankets for protection from the cold; and a cell phone and charger, water, food, and any necessary medicine. Plan Your Route Before heading out, make sure to check the weather, road conditions and traffic. Familiarize yourself with directions and maps before you go—even if you use a GPS—and let others know your route and anticipated arrival time. On longer trips, plan enough time to stop to stretch, get something to eat, check your phone, and change drivers or rest if you feel drowsy. Avoid Risky Driving Behaviors You know the rules: Do not text or drive distracted; obey posted speed limits; and always drive sober. Both alcohol and drugs can impair safe and responsible driving by affecting things such as coordination, judgment, perception, and reaction time. And remember always wear your seat belt. The Driehaus Difference Auto safety is for everyone. As we enter the winter driving season, a few moments preparing your vehicle, preparing yourself and deciding to drive defensively will pay off handsomely. We can help you with your auto insurance needs for personal or commercial vehicles. Call us at 513-977-6860 or contact us on the internet at www.Driehausins.com

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. Some 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 me maintained at 40 degrees F to protect the valve. Checks the heating systems for the dry pipe valve enclosure for proper operation and perform any needed maintenance or repair. Consider adding 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 rise 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. 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

Following up on our previous article on physical security, a primer of burglar alarm systems is needed. Alarm system technology has changed, and you should be an informed purchaser of these systems. Local or Monitored System? A local alarm system will sound an alarm at the protected premises or alert the supervising party via a text message. A local system will not alert police or fire departments. The local system is the least expensive option for Do It Yourself (DIY) alarms. A monitored system will report the alarm condition to the supervising party and also alert the local police and fire department of the alarm condition. This requires a communication path to the monitoring service. The communication path can be either cellular, phone line or a Wi-Fi connection via your internet service. Some local jurisdictions require a permit for a monitored system. There may also be false alarm penalties associated with monitored systems. Monitoring System If you are buying monitoring service, you should ask the questions. What channel is used as the primary communication path? The choices here are cellular, Wi-Fi, telephone line or radio system. You should assess the quality and reliability of each of these options. Is there a secondary communication path? If the first path is unavailable, is there a second path to send an alarm signal? This feature may be available, but it may also come at a higher cost. Who is monitoring the system? Does the provider monitor the systems with their own resources or is it contracted to another provider? While both can be acceptable, you should know who is receiving the signals. How many monitoring centers are available? You are looking for redundancy in this function. Is the monitoring service UL listed? There are UL standards for alarm monitoring services that have provisions for back up power, redundant communication paths, facility security and operator training. You want your monitoring service to meet this industry standards. Is there any supervision on the primary communication path? If the signal between your location and the monitoring service is lost, will you be notified? How often is the connection verified? If the connection is not supervised, you may not have the protection you expect. Extent of Protection If you refer back to our article on physical security, you will see our approach to alarm system extent. A good verification of the system design is called a walk test. If you enter through the identified entry points, can you walk more than 4 steps without triggering the alarm? Systems also offer life safety protection with fire detection and carbon monoxide detection. This is a good addition to your protection. Make sure the detectors are in the proper locations to be effective. We have an article on smoke detectors to help with this process. A third level of protection is temperature monitoring and water leak detection. Placing a leak sensor around the water heater, washing machine and kitchen can prevent considerable damage. The cost of monitoring is a fraction of the cost of repairs. Cameras in your Security System The modern security system integrates cameras into the alarm system package. Cameras can provide real time information to the monitoring station allowing the monitoring station to report a “crime in progress” versus an “alarm drop”. This can change the nature of police response. To allow off premise viewing of the video, a strong connection to the monitoring service is needed. Assess the type of connection and signal quality if you integrate video into your system. Check the video images for clarity and quality. Also determine the image retention time in the system. If you desire longer retention times, there may be additional costs for the storage of the data. Camera images can also be shared with law enforcement for investigation of events off of your premises. Check to see if your local law enforcement agency has a camera registration program for this purpose. The Driehaus Difference We want our clients to make informed decisions around security system purchases. We can help you identify any insurance discounts related to having an alarm system. If there are specific requirements to qualify for the discount, we can help you understand the requirements so you can find the system that meets these requirements. Reach out to us by phone at 513-977-6860 or on the internet at http://www.driehausins.com

If you have property, you have a theft or burglary exposure. Depending on the values involved, the security protection you need may vary. We encourage you to think of premises security as a three-ring process. By evaluating the Perimeter, the Building and Articles, you can effectively evaluate your protection and select cost effective methods. Perimeter The first circle to consider is the perimeter of your property. This evaluation should start at the property line. What level of access control do you have to prevent access to your site? Do you have no trespassing signs posted to advise people to stay off your property? How do you identify the boundary to your property? What level of access control do you require? Landscape features that identify your property line can be effective means to communicate the boundary. Signs can supplement the landscape features to communicate your boundary. Evaluate landscape choices to prevent landscape from being a tool for concealment or hiding. This is of greater importance as you get closer to the building. Fencing the perimeter of your property may be a difficult and expensive undertaking. Fencing may require approvals from zoning or building departments. Good fences make good neighbors and fence is a powerful message about restricting access to your site. There are electronic solutions that allow perimeter monitoring and alarm reporting. These must take into account wildlife and vegetation movement to be effective. Controlling vehicle traffic into your property is also part of this evaluation. Driveways can be gated or electronically monitored to control access. Use of cameras to monitor the perimeter of your property is an option. Consider the usefulness of the video captured in relation to detecting entry and identifying suspects. Long range images that lack detail may tell you someone entered but identifying them is not possible. If you consider camera coverage, place the cameras to capture useful images. Image retention should be considered to keep images for a sufficient period to be useful. Building These principles apply to homes as well as commercial buildings. The first step is evaluating the normal entry points for your building. Do you have solid doors, strong door frames and dead bolt locks? If securing sliding doors, do you have the ability to secure the tracks versus simply a latch on the sliding door? Protect overhead dock or garage doors with position contact to verify the door is closed and detecting any motion after securing. Evaluate windows that are accessible. Are the windows equipped with effective locking devices? Are the windows securely installed to prevent removal? Windows can be more secure by using laminated glass that resists shattering. Security films can be applied to windows that make them shatter resistant as well as offering UV protection for interior furnishings. Glass break detection can be used to protect windows that do not operate. Are other openings accessible easily from grade changes or access from trees or landscape features? If upper story openings can be easily accessed, they need to be considered as available openings for an intruder. Exterior lighting around the building should be even and not create shadows that can be points of concealment. Match the type and intensity of exterior lighting to any camera systems in use. If you are planning an alarm system for your building protection should be immediately focused on the perimeter doors and accessible openings. This can be accomplished with door sensors, widow sensors and glass break sensors. Door and window sensors offer the additional benefit of verifying that doors and windows are closed before the system will arm. Glass break sensors will alert you to entry via a broken window. This is important for glass sliding doors. Consider motion detection within the building. Adding motion detection will alert you to movement that did not trigger a perimeter sensor. This can include breaching walls or hiding in the space until closing. If using motion detection in a home, account for pets and furnishings that may move from HVAC induced drafts. Motion detection is also useful around dock doors that can be breached but not opened to gain access. Articles High value articles may deserve their own layer of protection. The most common article protection is the use of some type of secure container or room. These can be locked interior rooms up to and including vaults. Containers can range from a simple lockbox to a safe. If you are considering a safe or vault, understand that UL has ratings for these products, and you should consult with an experienced security consultant to select the proper safe and vault for your application. Safes that are designed for protection of paper records from fire may not offer the level of security protection you desire. Similarly, a security rated safe may not protect paper and electronic media from fire damage. Safe and vault ratings should be consistent with the alarm systems for your building and the response time for alarm investigation. Alarm systems can also be applied at an article level. If you have a safe or vault, there are alarm system arrangements designed to protect these containers. From door monitors to vibration sensors to detect wall attacks, you can add another layer of protection to the security system. For items outside a container or room you may consider article protection via your alarm system. Devices can sense movement from a display or removal from a frame. Motion detection around specific articles may be an option to consider. Technology The technology around security systems and products is changing at a pace that defies belief. You have a wide range of options for inside and outside camera systems, alarm systems and reporting options that are all being refined with each new release. With any of the internet-based systems assess the reliability of the connections and service. Security of the systems and data storage and retention are key considerations for utility and cost. The Driehaus Difference Ask us for our advice when it is time to consider security upgrades. We want to make sure you get the maximum benefit from your security investment. We can help you review your facilities and offer our perspective on the security program for your home or business. Call us at 513-977-6860 or contact us on the internet at www.driehausins.com

If you have products or services in the stream of commerce, you have a product liability exposure. If there is an event that causes bodily injury or property damage and your product or service is involved, you may have a claim. Unless your insurance has specifically excluded Products and completed operations as a covered cause of loss, your liability coverage will come into play. Products liability is one of the most complex insurance issues. This article will give you an overview of the causes that can create a products liability claim. Claim Causes The beginning of a products liability claim is when the product enters the stream of commerce. When there is interaction between people and your product or service that creates property damage or bodily injury, there is the potential for a claim. The basis of these claims can fall into the following areas: Defective construction or materials Failure to comply with applicable codes and standards Failure to investigate the sciences Failure to warn the user Failure of the product to perform as advertised Improper design Failure in the manufacturing process We can take a look at each claim cause and consider the controls over this exposure. Defective Construction or Materials Selecting the right method and material of construction requires analysis of the intended use environment. The environment should consider temperature, moisture, exposure to UV rays, strength needed, weight limitations, size limitations and availability of the appropriate materials. If the product is not made of appropriate materials, it can fail. If you select the incorrect products or processes as part of your service delivery, you can create a potential loss. Failure to apply with applicable codes and standards Legal jurisdictions lag behind the model code organizations in legal adoption of codes. The litigation process system does not recognize this delay in adoption. At time of loss, you would like to avoid questions about why you did not use the most current codes and standards available. If there are no formal codes, there may be industry standards that apply. You want to meet the minimum expectations for product safety. Model codes and industry standards often are the best source of these minimum requirements. What codes and standards were in effect when you introduced your product or service? If you have products and services that persist in the marketplace, you need to consider how code changes affect your product. Do you need to provide and update or revision? At the beginning of your product life were you using the most current set of standards, what changes have occurred? Failing to investigate the science This is understanding the unintended consequences related to your product or service. Do you understand how the chemicals used in your product or service interact with the materials at the proposed job site? Are the materials you use subject to degradation by the environment it will inhabit? Your product does not exist in a vacuum. Not recognizing the health and safety impacts of material choices is a danger you face. You may need to engage experts outside of your field to make this evaluation. Failure to Warn the User The Duty to Warn is worth of its own textbook, which actually exists. Giving users clear and actionable warning about hazards is a critical defense in a product liability case. This starts with the instruction manual and continues to the labels and warnings applied to the product. There are national standards for specific warnings and the hierarchy of wording, colors, and pictograms. Warnings must be useable by the intended user and placed in a manner to clearly communicate the hazard. Failure to perform as advertised Failure to perform as advertised is a function of the advertising and sales functions. Most of us are suspicious of claims that are superlative in nature. Yet despite the obvious downside of this type of advertising, they persist in the marketplace. Your marketing must also be appropriate for the intended user group. Making exaggerated claims as to capacity, endurance and efficacy can set the stage for a difficult claim to defend. Product liability comes into play when there is a property damage or bodily injury allegation. It is not a warranty coverage. Improper Design Improper design can manifest itself in across different elements of your product. Product liability does not mean a product warranty program. But a poorly designed product that has inherent hazards can cause a significant claim. Improper design can create extremely high defense costs. While you were not liable, the costs of defending you are part your insurance experience. Using a third party or peer review process can be an effective control. Failure of manufacturers The supply chain in commerce means that your product may be the sum of parts assembled from multiple sources. A change in part A can impact part B and create a safety hazard. Managing change within the supply chain is a critical control. Having proper contractual risk transfer and documentation of insurance availability from your suppliers is a defense mechanism that must be maintained. Selection and management of your supply chain partners is a key factor in controlling this loss cause. Risk Control Efforts The process to manage risk in products liability cases starts with evaluating your exposure to loss from each of the above listed causes. The having documented controls, design reviews, quality control, documentation reviews and follow up on products when they enter the marketplace are all needed. You are building a defensible position from which to respond to a claim. This is a team approach between your various departments, legal counsel, and insurance advisers. The Driehaus Difference We have experience in placing difficult product liability coverages. We know the data needs for quoting this coverage and what would generate risk control recommendations that affect your insurance placement. We can help you develop the defensible position for products liability. This can be internal processes, documentation as well as risk transfer from vendors and suppliers. Reach out to us on the internet at www.driehausins.com or call us at 513-977-6860.

Greater Cincinnati has a rich architectural history. Our neighborhoods are blessed with examples of historic buildings and structures. We want to maintain and preserve these buildings and part of that preservation effort is properly insuring the buildings. Owning a historic building requires a different approach to the insurance process. Even if you are not in a historic district, you may have a property with unique features and architecture and you want to properly insure those features of your building.. The features of a building that make it unique and historical can range from the structure of the rooflines, paint schemes, type of trim and decorative features, to materials used in the building construction. The replacement of these features after a loss can be a difficult process. If your insurance program is not designed around these issues, it can lead to a disappointing outcome. Values The first step in setting up an insurance program for a historic building is understanding the values that are at risk. For properties that have a specific historic designation, there may be restrictions and requirements around the exterior appearance of the building. This can limit changes in materials and changes in appearances. These limitations will add significant expense to a repair or replacement project. We discussed the insurance to value process in a prior article. This process uses constructions costs from current projects to project an average cost for the similar amount of construction in your building. These values are developed using modern materials and techniques. They are generally inadequate at estimating the replacement or reconstruction costs of historic buildings and finishes. Using a historic valuation service is often the best resource to establish a sound baseline replacement cost for your property. Your local historical society may be able to help you find a qualified appraiser. Coverages Standard insurance policies and the related claim adjustment process may not be prepared to deal with the nuances of a historic preservation claim. This is outside the norm for a typical property claim and trying to teach a claims adjuster the detail around your property is not something to do in the middle of claim. There are specialty insurance programs and specialty insurance endorsements and forms that can be used to place the coverage into the right context. The use of these forms and endorsements also clearly signal to the insurance carrier that a more focused claims adjustment process is required. Some properties may qualify for a historic tax credit. These tax credits may have time constraints related to the completion of the project. There are insurance forms that can protect you from the loss of this tax credit due to a covered loss. You will not get these forms and terms of coverages from an online system or an only pay for what you need phone call. These coverages are outside the realm of mass marketing and need an insurance professional to help you place your coverage. Preparation Getting the process started requires knowledge on the part of the property owner. You need to know what historic district or building regulations apply to your property. The existence of these restrictions may be the first indicator that you need a different insurance program. What are the architectural features of your building that are important to you? This can be the look of old-style wavy glass in windows, to the carved wooden details on the façade. If you have not taken stock of these features, it is doubtful that you will point them out to your insurance agent or an appraiser. The time to find out that you must use a specific brick or stone on your façade is not after a claim has occurred. Some simple inquiries to the local building department or historical district are the first step to getting the right insurance program for you. Once you have identified features that are important to replicate, take photos with a scale in the photo to allow proper measurements. Consider having an architect or engineering firm make a survey of your property to document the conditions, materials, and profiles. Having this level of detail will protect your investment by allowing accurate repairs or reproductions. You need to create an inventory of building features that support the valuation and have available in the event of a claim. The Driehaus Difference Our agency has background knowledge of urban planning, zoning, and development processes. Dan Driehaus has served on local planning commissions and is in touch with the needs of building owners for redeveloping our communities. Our offices are in the historic Cincinnati Club building at Piatt Park. We can help you understand the information you need to gather, the valuation process and the coverage required to protect your interests. Call us at 513-977-6860 or reach out on the internet at www.driehausins.com