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The Trends Data from the National Fire Protection Association (www.nfpa.org) shows that cooking is the leading cause of both fires and the second leading cause of fire deaths in home fire. In 2018 47% of home fires were caused by cooking and 20% of the residential fire deaths were attributed to cooking. This is a significant increase over the trends in 1980. Source: Fire Safety in the United States since 1980 – Marty Ahrens and Brigitte Messerschmidt – NFPA 2021 Cooking also has impacts on other fire safety features of a home. Nuisance alarms caused by cooking often leads to the disconnection or disabling of residential smoke alarms. The lack of smoke alarms is a key factor in increasing the number of deaths and injuries in a fire. Source: Fire Safety in the United States since 1980 – Marty Ahrens and Brigitte Messerschmidt – NFPA 2021 Reducing the Cooking Fire Hazard The good news is that there are actions that should impact this trend. The basic need to prepare food for your family should not be considered a high-risk activity. The improvements come in the form of changes to product standards. These standards influence the products available in the marketplace. As regulatory agencies adopt these standards, the level of safety will increase. The first area is a change in electric stoves. A change in the Underwriters Laboratory (UL.com) require that surface heating coils have a control to prevent overheating and ignition of cooking oil. This standard was effective in 2014 and required that all units manufactured after 2019 have this control. Given the long life of cooking appliances, the impact of this will be seen in the future. There are companies offering retrofit burners that meet the UL standard and can be used to replace existing surface coil burners. The second area is a change in the performance standard for smoke alarms. Smoke alarms will be required in 2022 to demonstrate that they are resistant to nuisance alarms from cooking while still activating promptly for a fire involving upholstered furniture. This is intended to reduce the number of disconnected smoke alarms. The impacts of this change should be felts quickly as smoke alarms are intended to be replaced after 10 years. We should see 10% replacements and all new smoke alarms meeting this standard starting next year. Controlling a Cooking Fire Cooking fires are dangerous and can spread quickly. On the stovetop, smother the flames by sliding a lid over the pan and turning off the burner. Leave the pan covered until it is completely cooled. For an oven fire, turn off the heat and keep the door closed. Visit the National Fire Protection Association website for cooking safety information. The Driehaus Difference We look out for information and risk management tools that an protect you and prevent a claim. We have previously discussed the evolving smoke detector installation standards and how that impacts your safety. Insurance is an after the event tool. We want to prevent the loss and help you protect what is most important to you. Call us at 513-977-6860 or contact us on the internet at www.driehausins.com

Cooking operations are what makes any restaurant or food service operation successful. If the cooking process involves the creation of grease laden vapors, a hood with grease extraction and a fire suppression system is required. These requirements have been in place for more than 40 years. In 1989 the standards for the fire suppression systems changed and the new standard for cooking protection was UL 300. We see recommendations from insurance carriers to restaurants and food service facilities to make this upgrade. We want to provide some background on why this is necessary upgrade. Why did the standard change? The changes in cooking materials, specifically the shift to vegetable oils meant that grease fires burned at a higher temperature. Many older dry chemical systems relied on a chemical reaction with animal fats that converted the fat to a soap type solution. This did not happen with vegetable oils, so fires were not being controlled. Changes in cooking equipment, making the equipment more energy efficient caused a difference in fire behavior. Keeping the oils and metal cooking surfaces hotter for a longer time made the fires more difficult to control. Dry chemical systems did not cool the surface or the fuel effectively. A trend in uncontrolled restaurant fires was observed. In 1989 UL addressed these uncontrolled fires by publishing the UL 300 standard. This standard was then adopted by reference into NFPA 96, Standard for Ventilation Control and Fire Protection of Commercial Cooking Operations. The International Fire Coded (IFC) also adopted UL 300 by reference. Wet chemical suppression systems became the rule. Dry chemical systems were considered obsolete. Did fire codes require upgrades? Each state has adopted a different approach to this question. In Ohio and Indiana — the system must be upgraded if it can no longer be serviced or there are changes in the system fuel, cooking equipment or layout that require extinguishing system changes. If you have an existing system, make no changes, and can find a service firm to maintain the system, it does not have to be upgraded. This left obsolete dry chemical systems in service. Kentucky — has left the question up to local code enforcement agencies. The application of the code has been inconsistent. A challenge for code enforcers is that there were wet chemical systems in place before UL 300 was adopted. These systems can be upgraded with additional agent and changes in nozzles, and after retrofit they can be UL 300 compliant. Identifying non compliant wet chemical systems has caused some enforcement confusion. The insurance company response Most insurance companies have an underwriting requirement that cooking is protected by UL 300 systems. This has been the most consistent driver in requiring the upgrades. Non-compliant systems are generally either require upgrading or have their insurance placed in high risk and higher cost programs. As fire losses occurred in facilities with non-compliant protection systems, there was a tightening f insurance for the service firms. Many service firms discontinued servicing systems that did not meet NFPA 300 for their own risk management decisions. The Driehaus Difference We understand the history and necessity of this fire protection system requirement. We can help you evaluate your system for compliance and assist you with any needed upgrades. If you have risk control recommendations from your insurer, we can help you investigate and respond to those recommendations. Call us at 513-977-6860 or contact us on via our website www.driehausins.com

Many businesses have goods stored off site in warehouses owned and operated by others. Many homeowners have a storage unit they rent to keep property off premises. In both situations you have property that is away from your main location. How is this property covered by your insurance policy? Personal Lines Insurance The first question to ask yourself if you have a self-storage unit? If so, what is the value of the goods stored there? The values in self-storage units can vary widely and you need to know what is at risk in this unit. The values you have at risk can also factor into the level of security that is needed for your goods. This may be a site selection consideration. The next question is what language is present in my homeowners’ insurance policy regarding self-storage units? There are at least two schools of thought on covering goods stored in a self-storage facility. One limits the coverage to 10% of your contents limit (at your residence) or $1,000 whichever is greater. The second approach is that you are covered at the self-storage facility as the property is “anywhere in the world”. The second approach offers the broadest coverage. The limited coverage provided by the first option may be acceptable if the contents of your storage unit are within the 10% imitation. Both are dependent on your having an adequate limit of insurance. You must read your policy to determine which language is present. Some self-storage operators offer contents insurance as part of the rental fee. These programs may exclude certain types of property or limit coverage for some perils. Talk to your agent before enrolling in one of these programs. We may be able to get your better coverage at a lower cost. These programs are based on convenience not a deep understanding of your needs. If you are engaging a public or contracted warehouse to store goods for you, then the business insurance provisions would apply to your insurance needs. Business Insurance For goods stored away from your premises you have a number of options. You can add the warehouse address as a location on your policy and state the limits of coverage that are required. The advantage of having first party coverage is that you control the terms and conditions of the coverage. If you do not have other property insurance, a scheduled property floater may be an option. For either case if the values at risk fluctuate, ask about either a reporting form or a peak season endorsement. This will custom fit the limits to your needs. Your insurer has the option to pursue a claim against the warehouse operator if they feel the loss was the result of negligence on the part of the warehouse operator. The amount of Warehouse Legal Liability (WLL) can be an important underwriting factor in placing coverage for off premises storage. The warehouseman must provide Warehouse Legal Liability (WLL) as part of the normal operations for a warehouse. This is coverage for your property, while in the care, custody, and control of the warehouseman for negligent handling or storage. The standard of care is what a reasonably careful person would do. Uniform Commercial Code 7-204 Legal liability coverage leaves a wide range of losses uncovered. If the cause of the loss cannot be proven to be negligence, there is no payment under WLL. The WLL limit selected by the warehouse operator is generally the limit required by contractual agreement with a customer. As a customer you need to understand that the WLL limit may be a fraction of the total amount of exposure in the building. Within WLL insurance is a reliance on written agreements, receipts, and contracts. Most warehouse receipts can have a valuation clause where the warehouse operator limits their liability to a ratio of weights, storage receipts or handling receipts. Similar liability limitations are common in warehouse contracts that are signed for storage. Since these contracts are part of the claim adjustment process, be sure you understand the liability limitations before you sign the agreement or warehouse receipt. Some warehouse operators will have a Personal Property of Others (PPO) coverage on their policy to address protecting goods in storage. They may be insured by a carrier that does not write WLL. This policy has a specific limit and caps coverage to a specific dollar amount. The limit of the PPO policy may be the highest value required under a contract. While this meets the terms of that contract, it may be only a fraction of the exposed values. In the event of a total loss at the warehouse, it is doubtful that the warehouseman will have adequate limits for your goods. You may have an option to purchase higher liability limits at additional cost via the warehouse operator. If you are not satisfied with the standard liability terms, you can explore this option. Please engage with your insurance agent to fully evaluate your options and exposures. Business Income If you have goods off premises , you have a business income exposure if that warehouse suffers a loss. This is an often-overlooked exposure for many companies. If you are relying on the WLL coverage as your protection, you may not have the location listed as a property location on your policy. If the location is absent from your policy, there will be no business income coverage for a loss at that location. The WLL policy may not respond to consequential losses related to an event at the location. If the loss is not deemed negligence, the WLL policy will not pay the claim. You can declare the location as a dependent property and have a business income limit established to protect you from losses that may occur at this off premises site. This step will require you to evaluate the exposure and determine the right limit of insurance and the proper period of restoration to recover from the loss. Gratuitous Storage for Community Groups If you are involved with a non-profit or community organization, you may have materials related to your operations being stored in a warehouse for free. The warehouseman is being a good citizen and supporting the community. In the case of storage done for free, the warehouse legal policy may not respond to a loss. Since the goods are not stored under a warehouse receipt or a contract, the trigger for coverage may be missing. The organization who owns the goods should carry their own insurance on the goods. As a warehouse operator if you want to extend some protection to the organization, execute a storage agreement and charge a $1 fee. This will establish a coverage trigger for your WLL policy. The Driehaus Difference We have gotten down in the weeds on this topic. Your agent should be evaluating your property exposures and income exposures beyond the walls of your main location. That means asking more detailed questions, understanding your revenue streams and what can impact those streams. We take the time for both business and personal clients to look beyond the obvious. This is not possible if you think 15 minutes saves you 15%. If you never considered these exposures, you probably would not think you need the coverage. Call us at 513-977-6860 or reach out on the internet at www.driehausins.com

In the world of “only pay for what you need”, shopping for insurance has taken on a new feel. The decision making about coverages and limits are now placed in the hands of the buyer. While this does lead to the buyer having the power to choose, it can be a difficult set of choices if you do not understand some of the differences in products offered by the insurance industry. Insurance is a not a “one size fits all” product. Different customers have different needs and different exposures have different treatments. We will take a look at homeowners’ insurance to highlights some of the choices available to you. This commentary is based on ISO forms. Individual companies may offer their own versions of homeowners policies. The titles of the forms are not descriptive. Many people expect the broad form to be better than the special form. The language is not intuitive. To appreciate the differences in these forms you need to understand the difference between a named perils and open perils insurance form. Without this context, you cannot make an informed choice as to what you need. Named Perils – policies using this type of coverage trigger include a list or descriptions of the perils that are intended to be covered by the policy. The insured party has the burden of proof to show that the loss was caused by one of the stated perils and is covered. Different policies may have different perils named. You need to evaluate the specific form to be sure you have the coverage you need. Open Perils - these policies take the opposite approach of named perils. The insurer describes or lists the perils that are not covered . The burden of proof at time of loss lies with the insurer to prove that coverage does not apply. It is still important to review the excluded perils on these forms to see if you have the coverage you need. The policies were once referred to as “all risk” coverage. That language is no longer used as it was found to be misleading. The differences in the policy forms become clearer when you understand the structure of the coverage. This also sets the stage for how you would approach a claim under these policies. If this is new information to you, do not feel bad. You will not find this level of detail on the web sites that want you to buy insurance directly. The insurance policy is a contract between you and the insurance company. In exchange for your paying the premium, the insurance company is obligated to provide the coverage in the form. You need to know the language of the form to evaluate what perils are either covered or excluded. The challenge is that you do not get the form until you purchase the policy. Most carrier web sites have FAQ sections, but they do not offer a copy of the form. As a result, you may find making the above suggested coverage comparisons a challenge. This discussion did not touch on the wide range of variables on deductibles, valuation terms and the endorsements that are available to tailor coverage to your situation. We know that you have a limit on your desire to read about insurance. The Driehaus Difference You have a busy life and may not want to take your time to uncover the definitions, policy terms and unique language of insurance contracts. You may not want to compare products from company to company. We have done this already. We want our clients to know the differences between forms and coverages. We can explain these to you and tell you why we suggest a carrier and the product from that carrier for you. We pride ourselves on our depth of insurance knowledge and experience. We want to use that knowledge to your advantage. Contact us by phone at 513-977-6860 or the internet at www.driehausins.com .

Businesses must deliver their goods. In most cases this means by planes, trains, and automobiles. This means that your goods leave your premises and are subject to loss while in transit. How you manage this risk is an important business decision. We deliver on our own vehicles If you deliver your goods on your vehicles, the transit coverage in an Owner’s Cargo Coverage inland marine policy is what you need. This policy provides you with first party coverage on your goods on your vehicles. You specify the limits of insurance, and the premium is based on a combination of limits and deliveries, or vehicles covered. We use others to deliver… When selecting a motor carrier or delivery service, ask for proof of motor truck cargo liability insurance and what is the limit provided. Cargo insurance is considered a strict liability coverage where goods that are in the care custody and control of the carrier are their responsibility unless there are specific events that are acts of God, acts of a public enemy, or acts or default of the shipper, a public authority or inherent vice or nature of the goods being shipped. The assumptions of cargo insurance is that there is a record of the shipment that describes what was being shipped and where it was to be delivered. The shipment must have been in good condition when turned over to the shipper and the shipper must document the damages done to the shipment. The assumption that liability is with the carrier is a common starting point for the discussion. The wildcard that is present is the limit of insurance available for settling the claim. If you shipped a $250,000 machine with a carrier than has $50,000 in cargo limits, you may be chasing the carrier for the remaining $200,000. Do you have a contract with the carrier that specifies terms and conditions? In this case your contract would define the financial responsibility that the carrier needs to provide. The supply chain issues highlighted in the pandemic make cargo insurance issues more important than ever. The rising costs of items during supply chain disruptions may make the cargo limits carried by the motor carrier inadequate. Recent price hikes in lumber and copper-based building materials have pushed prices to historic highs. Has the trucking company escalated their cargo limits in lockstep with the market cost increases? As a shipper you have the option to purchase your own insurance for goods shipped with others. An inland marine Transportation policy is intended to cover your goods in transit under a bill of lading with another carrier. The advantage to having your own transportation policy is that you control the terms and conditions of coverage, and you are a first party claimant to your insurance company. You pass the claims handling with the other carrier to your insurance company. You get the best claims service from your insurer, and they deal with recovery from the trucking company’s insurance carrier. High Value Shipments The concern about cargo limits becomes more focused when you are shipping a high value load. In these cases, it may be prudent to obtain a trip transit policy. This policy covers that particular shipment whether it is on your vehicles or the vehicles of a motor carrier. You may find it easier to obtain a trip transit policy for a high value shipment than asking motor carriers to get a policy endorsement to increase their limits to satisfy your needs. As a first party coverage, you control limits and terms of coverage. If a motor carrier is involved, any recovery actions are left for your insurer to manage. The Driehaus Difference We know that transportation of your goods is a critical part of your business. We can help assess issues beyond insurance coverage with reviews of fleet safety programs, driver monitoring programs, use of telematics and how to use public data sources to monitor carrier performance. Our coverage knowledge for transportation exposures means we can help you protect what is important to you when it is on the move. Call us at 513-977-6860 or contact us at our website www.driehausins.com.

There are many circumstances where you may live in a building that you do not own. In these spaces you will have your belongings and you will interact with others. You need to protect yourself financially from events that can occur in your new residence. This is when tenant’s insurance becomes part of your financial planning. Tenant’s insurance may be required by your lease. If not, the need to protect yourself and your property from loss remains. What is covered? As with any insurance product there are different levels of protection provided based on the form that is used for your policy. The standard ISO Tenant’s policy is a named peril policy and offers property coverage for only those perils listed in the policy. The property covered is your personal property. There is no coverage for the building itself. Companies may offer other products that have expanded coverages, but in the world of “only pay for what you need” this may not be a request that you know is needed. Coverage for your property is actual cash value, so that means the original values are lowered based on depreciation. Again, there are enhancement forms available that can add replacement cost to your policy. As with all personal lines property programs there are sub limits on items such as electronics, jewelry, firearms, and cash. This can be an issue if you are downsizing and have accumulated items that may exceed the limited base coverage. You can obtain expanded coverage as long as you make sure to ask the right questions about the coverage forms. Many Tenants may also have a self-storage unit to accommodate those things that will not fit in the apartment. The base Tenant’s forms offer 10% of your contents coverage or $1,000 whichever is greater. You need to know the values in your storage unit to know if you need to ask for a higher limit. Tenant’s policies include liability coverage for property damage or bodily injury from an event that is covered by your policy. If you host visitors in your apartment or have any publicly accessible areas associated with your apartment this is a coverage you need to have in place. Medical payments coverage is also provided in the event another party suffers an injury that would be covered by your policy. Different companies offer different base liability limits. When looking at different policies, compare the limits provided. If you have the need for higher liability limits a personal umbrella or excess liability policy can be added to your program. Savings Opportunities You should ask what discounts can apply to your Tenants’ insurance. Adding auto insurance to the program may generate a multi-policy discount. Good claims history, and safety features of the apartment building such as sprinkler systems, fire, and burglar alarms and back up power generators can also earn a discount. You need to identify these when you are shopping for coverage as they may not automatically be applied. The Driehaus Difference If you are shopping online or looking to “pay for what you need” you need to be an informed purchaser of insurance. If you do not know the differences between named perils policies and open peril policies, you are at a disadvantage in shopping. Valuation clauses such as Actual Cash Value and Replacement Cost may not be something you are looking for within the proposal you are given. Did you consider the sub limits for certain types of property? We understand all of these differences, and we will work with you to get you the coverage that fits your needs. We are focused on making sure your insurance program fits you. We know that insurance is not a one size fits all product. Call us at 513-977-6860 or reach out to us on the internet at www.driehausins.com

If you have employees, you have Employment Practices Liability (EPLI) exposures. Your exposures are generally excluded under your General Liability policy. Without an EPLI policy, you are responsible for defense costs and judgements. EPLI claims have been increasing. The annual costs related to defending the claims continues to escalate. The complexity of the exposures and the ongoing evolution of court decisions make this an exposure that is difficult to manage. You need to have experts available to protect your interests EPLI Exposures EPLI exposures come from past judicial decisions, common law, and a number of laws. A short review of these exposures is needed for your recognizing the need for this insurance. EPLI is designed to provide coverage for the following common law exposures. Court decisions have shaped the legal landscape for these issues. Discrimination Wrongful Termination Sexual Harassment Retaliation Inappropriate employment conduct Statutes that are related to employment can also create an EPLI exposure for an employer. A short list of major labor related laws include: The Fair Labor Standards Act (FLSA) of 1938 The Equal Pay Act of 1963 Title VII of the Civil Rights Act of 1964 Age Discrimination in Employment Act (ADEA) of 1967) The Pregnancy Discrimination Act (PDA) of 1978 The Worker Adjustment and Retraining Notification (WARN) Act of 1988 The Civil Rights Act of 1871 (as amended by the Civil Rights Act of 1991) Americans with Disabilities Act (ADA) of 1992 Americans with Disabilities Act Amendments Act of 2008 (ADAAA) The Family and Medical Leave Act (FMLA) of 1993 The Uniformed Services Employment and Reemployment Rights Act (USERRA) of 1994 The Genetic Information Nondiscrimination Act (GINA) of 2008 Many of these statutes are complex and defense costs related to a claim can be substantial. EPLI policy forms vary, as it pertains to covering the penalties for violations, but defense costs are generally provided all EPLI coverage forms. Where to Find EPLI Coverage EPLI coverage can be found in stand-alone EPLI policies or as part of a management liability policy. There is a limited coverage option available on some Businessowner Policies (BOP). Standalone EPLI policies may have broader terms of coverage and may also offer risk management services as part of the policy program. The stand-alone policies may be a higher cost than a management liability package. If you have stand-alone EPLI policy, you may need an additional excess limits for your EPLI coverages. Management liability policies package EPLI with other coverages such as Directors and Officers (D&O), fiduciary liability, kidnap and ransom, and cyber liability. Since these polices share rating data, there is often a price benefit to bundling these coverages. Some carriers who offer BOP policies may have an endorsement for EPLI available for their BOP product. This is a “claims-made” ELPI endorsement. These endorsements generally have relatively low limits available and may not offer the broadest coverage terms. The Driehaus Difference EPLI and management liability policies are not fringe coverages. The laws that create the need for EPLI require access to subject matter experts. EPLI Insurance provides a vital level of protection for your business. Having an agency that understands the marketplace and what coverages are available from which carriers is key to navigating a complex insurance marketplace. This is not a coverage that can be defined in “fifteen minutes saves you 15%” or “just pay for what you need.” Most business owners know they have EPLI exposures, but need professional help in selecting the right protection. We have the experience and skills to help you tailor your coverages to your risks. Call us at 513-977-6860 or reach out to us via our website www.Dreihausins.com .

Traditional property and casualty insurance products have insulated themselves from cyber issues. The standard commercial property policy uses small sub limits to limit the exposure to cyber losses. The Business Owner (BOP) takes a similar approach. General Liability defines computer data as an intangible property, so it would not meet the coverage trigger for property damage. This leads to the insurance industry creating specialized insurance products for cyber exposures. We will take a look at the most common policies and what they are intended to insure. First Party Insurance The intent of first party insurance is to cover expenses that are incurred by the named insured that are caused by a cyber event. Privacy Notification and Crisis Management Expense Coverage is a first party policy to provide for a response to a data breach. This coverage can provide for engaging a forensic specialist to determine the origin of the breach and to make recommendations to secure the system and prevent future breaches. If you are required to notify affected parties of a breach, this coverage can provide services or offset expenses related to this notification procedure. The extent of this effort will be in proportion to the number of affected individuals and the extent and type of data compromised. If Personal Identifiable Information (PII) was compromised, you may be obligated to provide credit monitoring and identity theft restoration to affected individuals. Some polices include a referral to service providers as part of the coverage. The policy may provide funds or services related to public relations to address reputational damage from the breach. This is a “no fault” type of insurance and does not require an admission of liability to trigger coverage. Coverage can be added to first party programs to include losses from: Business interruption Data loss or destruction Computer fraud Funds transfer loss Cyber extorsion These perils are named to fill in for exclusions or items sub limited on standard policies. Regulatory Defense and Penalties Coverage is a first party coverage to provide funds for defending the named insured against local, state, and federal regulators who may assert that regulations regarding data security or privacy have been broken. Data breaches do not respect state lines, so a single breach could bring regulators from multiple state calling. Some policy forms can cover the fines and penalties assessed. This is an unusual coverage as most insurance policies exclude fines and penalties Third Party Liability Insurance Third party liability coverage is intended to protect you from the damages sought by others for your acts or omissions in regard to cyber events. Information Security and Privacy Lability coverage is intended to provide insurance to answer claims from parties whose privacy was compromised or who suffered some damages related to a data breach or network security issue with your systems. This is a true third-party coverage to address losses sustained by others as a result of your cyber event. Typical Exposures are: Loss or theft of PII from systems under your care, custody, or control Damage caused to data in another party’s computer system Use of your systems in a denial-of-service attack Failure to make timely disclosure of a breach Failure to comply with your own privacy policy in relation to PII of others Failure to implement or administer governmentally required controls to protect PII or respond to a data breach. This is a true liability policy and your responsibility for the actions or omissions is in evidence. Limits of Insurance The insurance products mentioned above will have specific occurrence limits and aggregate limits shown on the policy. Many of the cyber policies have modest limits for these exposures and your exposure may be more significant than what is offered. The risk management steps of scanning the environment and analyzing risk are key elements of your analysis. What is the scope of your data exposure? How many records? What is the nature of this data? Does it include PII? Does it include banking and credit card information? Does it include personal health information? Is the data you seek to protect constitute trade secrets of Intellectual Property that could impact your business if lost? You must have a frame of reference to establish the scope of the exposure and the potential costs to make a decision about how to treat the risk. Part of that treatment is setting an appropriate limit. The Driehaus Difference Our review of your insurance program will include a cyber review. No business that has data or is connected to the internet is immune from cyber exposures. We will help you identify and quantify your exposures so you can make an informed choice of treating the risk. To reach our team of insurance professionals, call 513-977-6860 or contact us via our website at www.driehausins.com

This is a common question when you discuss property insurance with your agent. I stopped to think about how this question would be answered by my home. I live in a house built in 1967. It will be 54 years old this year. So how old is my house and what updates have been performed? It was not a simple answer. I suspect this will be like many homeowners. Roof I replaced the roof, down to the deck, in 2003 with a 30-year architectural shingle roof. Gutters were replaced and gutter guards added in 2005 to keep the gutters clear from leaves and debris. Drainage system to conduct downspouts to a dedicated storm sewer system done this year. Electrical The original electrical service was upgraded to a 200-amp service in 1998. All new circuit breakers at that time. Every switch and outlet in the house have been replaced to update the look to Decora plugs. All exterior light fixtures replaced in 2006 when siding was replaced. A new hot tub service was added in 2005. Plumbing Interior drain tile and sump pump added in 1998. Sump pump replaced in 2018. I added a bathroom and laundry room in 2004 so new plumbing was added. The two original bathrooms have been remodeled since 2000 and new fixtures and drain lines installed. The kitchen was remodeled, and the sink moved, so new plumbing in the kitchen in 2008. I replaced the cast iron waste stack and replaced the drain lines for the first floor in 2020. Main water service from street replaced in 2009. Tank style water heater replaced with tankless unit in 2020 HVAC New high efficiency gas furnace and high efficiency AC in 2017. Building envelope New windows and doors in 2008. Vinyl siding trim replaced with cement board siding in 2006. All exterior repainted in 2020. Garage door and opener replaced in 2005. Driveway, concrete steps, and all ornamental ironwork around front porch replaced in 1999. So how old is my house? Many of us routinely update and improve our homes and do not think about the level of updating that has taken place. It took me more than a week to make this list and find the dates. A recent online presentation from an insurance carrier told us that they had third party data to identify updates to homes. In most cases this is matching building permits to your address. Two of the electrical projects and one plumbing project called for permits. These are the only projects visible from public records. The balance fell under repair and maintenance that would not require permits. Big Data would have missed most of my efforts at home. Did I keep my records to allow me to prove I did the work? No, I simply took care of my home. A week of research found some of the traces, but not detailed information. I need to keep better records! I shopped for homeowners’ insurance a few years ago and I am sure I did not share all of this with my agent. I may be paying a rate for a 50-year-old home when the effective age is much less. If you are dealing with a commercial building, the pricing impacts can be greater. The Driehaus Difference This question often asked and answered very quickly. It really deserves more thought and consideration. I know that I did not answer this completely. I just said, “You know, the normal stuff.” Learn from my experience and maintain a file for home and building upgrades. It is a small effort that can bring significant benefits. We ask you more detailed questions about updates because we know how important it can be to the underwriter. These answers can affect your premium and the markets that will consider your business. This is the difference between a professional insurance consultation and “15 minutes saves you 15%". Reach out to us at 513-977-6860 or on the internet at www.driehausins.com

The recent high profile ransomware attacks have brought this issue to the front page. Cyber security breaches are growing at an alarming pace and the damages done can be substantial. The exposure is real for anyone with an internet connection. If you have business or personal data on machines that are internet connected, you are at risk. The risks go beyond a systems outage. You can have loss of market, reputation damage, and lost income from the period of impairment. If your systems adversely affect others, you may have a liability exposure. Cyber exposures are getting more significant every day. Cyber Security Basics Most cyber attacks are not highly sophisticated endeavors. They are successful because many systems are simply easy to compromise. Systems that lack effective security software for antivirus and malware detection are easy targets. The lowest level of security is a password an many users use predictable passwords and never change them. This creates an easily compromised system. Rank your System Security Effort on this Scale: No controls that I know Minimal level of control – whatever was provided with the computer- no password standards Purchased security suite with automatic updates – no password management Security suite and regular password changes with strong password standards Multi factor authentication required for access A rating less than 4 makes you an attractive target. 4 is the absolute minimum you should provide, and this is a level that leaves you vulnerable to a focused attack. If your response is that IT handles this, you are vulnerable. Cyber security involves every user and is an enterprise-wide undertaking. If you do not have effective security controls, you could have a liability exposure as well as potential system breach potential. Phishing Many compromises are the result of “phishing” attempts. Phishing is when an attacker gains access to your systems via a message. That can be an email, a text message, or a web site that you are asked to visit. The pretext is created to ask for personal or business information; ask you to click on an attachment or getting you to connect to a website that installs malware to infect your system. Once you grant the information or click on the attachment you have opened the door. In some cases when you fall victim to phishing, you may lose insurance coverage. Since you provided the access or gave the information away, you authorized the transaction. Rate your Resistance to Phishing You spelled fishing incorrectly Have heard about it Have attended some training, read something Have done training and hands on exercises Have ongoing audits with simulated attacks and training If you score less than 4 you have a significant exposure. You need to know how to check out links and email addresses. This means hands on experience. Phishing is highly effective at compromising your systems. You invite or allow the intrusion add once inside your system the hackers can take control, steal information or shut down your network. Software Updates Many of the attacks are based on vulnerabilities in operating systems and common applications. Most of these providers have regular updates to their products to address security and normal bug fixes. If you fail to routinely apply software updates you leave the door open to attack. Rate your use of Update Services No automatic updates enabled Windows updates are enabled Service to scan applications and detect and alert you to updates, but not scheduled to run periodically Software to detect and install updates – alerts you to updates that require your intervention. Scans are scheduled routinely. A score of less than 4 on this leaves the door open to system compromise. Software must be regularly updated to be effective at resisting the attack. You should also consider applications that do not have an update service. If these products are connecting to the internet or you network, old or outdated security protocols are a hazard. Security and system updates take time and resources to properly administer. Password management requires ongoing effort. Software updates require installation time and often restarting your system to fully install. A best practice is to test updates on a dedicated system to make sure there are no adverse results from an update. The discipline around these issues will pay dividends in system protection. Know Your Exposure The quantity and type of data on your system can help you understand your exposure to loss. If you store Personal Identifiable Information (PII) about your employees, customers, prospects, or others you have data that is attractive to bad actors. This data is the first step to identity theft and your management of the data places a liability on you to secure it properly. Collection and storage of payment information is another consideration. Having bank account data, credit card data or other payment related information on your system makes your data a high-profile target. Using a third party for this lowers your exposure as long as the third party provides proper data protection. Transferring risk to a poorly managed provider does not serve your interests. The intellectual property unique to your business can also be a target for cybercrime. From customer data to proprietary designs and products, a breach of your intellectual property can have devastating implications. Reputational damage from a data breach can be a costly outcome from a security lapse. Data related to process control may lead to business interruption and damage to process equipment. Data and code that is unique to you does not make it off limits to a bad actor. These systems can be ransomware targets. Resources The National Institute of Standards and Technology (NIST) has developed a cyber security framework as a guide for national assessment and implementation of cyber security. For small and medium businesses there are specific NIST tools and resources to help you assess and implement your cyber security controls. Visit NIST Small and Medium Business Resources to see what the security framework entails and to get practical assistance in implementing this process. See a short video to get an introduction to this framework https://youtu.be/J9ToNuwmyF0 The Driehaus Difference We recognize this is an extraordinarily complex issue and one that requires expertise to implement controls. We have access to carriers with cyber expertise and we can refer clients with cyber security concerns to an expert. Call us 513-977-6860 or reach out to us via our web site www.driehausins.com. Watch for our next installment on the insurance coverages that are available for cyber exposures.

Emergency action plans are required in OSHA regulations. The OSHA regulations show their age by focusing on traditional fire drills and evacuation drills. This does not mean that you are not required to address other hazards. The OSHA General Duty Clause captures your responsibilities as an employer. Each Employer shall furnish to each of his employees employment and a place of employment which are free from recognized hazards that are causing or are likely to cause death or serious harm to his employees. To see a comprehensive list of potential hazards that may require your attention visit FEMA’s emergency planning resource at https://www.ready.gov/ Since OSHA is a commonly referenced workplace safety resource, let us take a look at OSHA. The General Industry standards call for this specifically in section 1910.38. This section also references that compliance with the Life Safety Code is considered as complying with this OSHA subpart 1910.35 OSHA has resources to assist employers with meeting these standards. The first is an OSHA Expert system to determine if you need an EAP. This questionnaire can be accessed at https://www.osha.gov/etools/evacuation-plans-procedures/expert-systems/osha-requirements If the tool indicates you need a plan, you can link to the follow-on Expert System for creating your EAP. This tool can be accessed at https://www.osha.gov/etools/evacuation-plans-procedures/expert-systems/create-eap These tools are good for small business and locations that do not have significant fire hazards or special chemical hazards. A review of the Life Safety Code indicates that Emergency Action Plans are required in Section 101-4.8. The code gets more granular in training and drill requirements in the occupancy-based chapters. The following occupancies have specific training and drill requirements in the Life Safety Code Assembly occupancies – employee drills and crowd managers Education occupancies - Fire drills required Day Care – Evacuation drills required Health Care – Evacuation and fire drills Ambulatory Health Care – staff training and drills required Detention and Correctional – Staff training including fire extinguisher use Hotels and Dormitories – Hotel emergency team and drills in dorms Apartments – occupant instructions required Residential Board and Care – staff training and drills required Mercantile – staff training and drills Business Occupancies – staff training and drills A good resource for assistance in developing these plans is the National Fire Protection Association (NFPA). The NFPA web site, www.nfpa.org , had a variety of training materials and resources to assist you. The OSHA Construction standards reference an emergency action plan at 1926.35. A fire safety plan is called out in 1926.150. Construction sites need to carefully evaluate the methods used to alert employees of an emergency and have a response plan in place. The Ready.Gov Hazard List Focusing exclusively on what is required in OSHA standards and the Life Safety Code may leave you exposed to claims of failure to plan. The hazard list here is either comprehensive or frightening depending on your outlook on life. FEMA provides a collection of Hazard Information Sheets to address many of the hazards noted. As the list of potential emergency events expands, you may need to expand your planning consultations. Having a response plan that is coordinated with the first responders will allow you and the responders to coordinate your actions. This can be as simple as what entry points should be used to detailed pre-planning on process hazards, special hazard protection systems and security issues that affect your facility. The local responders may also be able to assist with training resources that are consistent with their operational guidelines. The Driehaus Difference Your risk management program should include response plans and a review of insurance coverage to be sure you have the financial protection for an event. Some insurance programs can include assistance with incident response, post incident recovery and managing the public relations aspects of a critical event. Talk to us about your options for insurance and any assistance we may have for you. You can contact us on our web site www.driehausins.com or call us 513-977-6860

What coverage is needed? When a building suffers a significant property loss, there is the potential that the code officials will require that the building be brought up to current code standards. The exact decision-making process varies by jurisdiction, but it can hinge on what percentage of the building is affected or if the building has suffered structural damage. A detailed evaluation can trigger a score that requires a code upgrade. If the extent of the upgrade is structural in nature, it may be necessary to demolish the undamaged portion of the building to retrofit foundations and footings to meet new standards. While this is the most extreme case, building owners are routinely faced with the need to improve the means of egress, add sprinkler systems, upgrade accessibility features and a host of other code requirements. The property insurance policy has standard exclusions that will not pay for any expenses related to Ordinance and Law related costs. This leaves building owners with a significant coverage gap. Many policies will offer some supplemental coverage, but the limits are generally low and would not cover the full cost. Assessing the exposure Most property owners are content to know that their building is “grandfathered” in terms of code compliance. Changes to the building code, Life Safety Code, sprinkler standards and special hazard protection standards are generally not retroactive. What was approved at time of construction is permitted to remain. As long as the scope of any damage fits into the building official’s definition of “repair”, you are probably safe. If the scope of work exceeds repair, you may be facing a code required upgrade. What should you evaluate as a starting point? Would your occupancy/business activities be permitted a building of this size and height in the same construction class? Can the existing structure handle the structural design loads per the new code? These loads are updated periodically as the code evolves. Are fire rated separation walls required in new construction? Are there requirements in the new code for tenant or dwelling unit fire rated separation? Are there fire separation code requirements for corridors that would need to be met? Are vertical opening improvements needed for new code compliance? Does the HVAC system have proper smoke and fire dampers as needed? Does the occupancy require fire detection? Does the building have sufficient means of egress per the current code? Is elevator system control provided? Are emergency lighting systems and exit lights provided as required by current codes? Are automatic sprinklers required by the current code? Is a standpipe system required by the current code? The above list deals with some of the building code questions. A second area of concern for many building owners is meeting the requirements for American with Disabilities Act (ADA) requirements. These can include accessible entrance, accessible restrooms, elevators, ramps, and changes to elevator controls and building signage. If you feel you would need funds to address these issues in the event of a large loss at your facility, then you need ordinance and law coverage. What Values are Needed? Ordinance and law coverage generally has three distinct limits. The limit for covering the undamaged part of the building that must be removed to meet code requirements The increased costs to repair or replace parts of the building that are required to be upgraded to meet the current codes. The cost to demolish and clear the site if required by code. The limit for the first coverage is normally included in the overall building Replacement Cost (RC). It is important to use replacement costs in this instance. If you are insuring to Actual Cash Value (ACV), the values will not be adequate to include the code upgrades. If you need help with these valuation terms, see our post Valuation Clauses- What will it pay? The coverage amounts for increased cost of construction and the demolition are generally set numbers and may be built into the policy via supplement coverage or a broadening endorsement. Evaluate these limits and if you have significant exposure to upgrades, assess the value of the needed upgrades. The Driehaus Difference Our area has a rich supply of older and historic buildings. These buildings offer an architectural diversity that makes our neighborhoods special. With these buildings there is an inherent exposure to loss and the potential need to upgrade to meet current codes. The insurance professionals at Driehaus Insurance Group recognize this exposure and can help you understand the need for coverage and what limits to carry. Reach out to us on the internet at www.dreihausins.com or call us at 513-977-6860