For the past twenty years the interest in roofs by the insurance industry has increased exponentially. From simple questions about type and age the topic has evolved to high tech AI assisted ariel imagery being used to develop numerical scores. The images are used to identify roof covering material, estimate roof age, detect wet areas, and evaluate the condition of the roofing materials. We have previously written an article on insurance roof inspections. The Roof Score Technology and data streams have evolved into a score that can be used in rating algorithms. Verisk, one of the largest insurance data providers, has a specific roof scoring product they sell to insurance companies. This score can determine how your policy will be managed at renewal. Based on the score it can trigger a premium increase that is within the amount allowed by state law. Some insurance companies will offer a conditional renewal based on your agreement to replace or repair the roof. Others may issue notice of cancellation based on hazards identified by the survey. As a new customer seeking coverage, the roof score is used as a risk selection tool. A low score will most likely lead to a decline. Impact of Roof Condition on Profitability What drives this intense interest in roof? Per Verisk wind and hail events account for nearly 50% of all residential claims, with roof-related claims making up the majority of those losses. As the cost and frequency of severe weather continue to rise, so does the financial burden on insurers especially when the average roof replacement cost is $28,000. Roofs in poor condition (RCS scores 4.7) represent 38% of residential properties in the U.S. Pre-existing conditions such as small hail storms reduce resiliency, making some roofs far more vulnerable than others. Roof Age Reality versus Marketing A recent roof purchase was advertised as a fifty-year roof. The manufacturer offers a fifty-year warranty on materials. What an incredible deal! But as we tell our clients, read the small print. The small print is the actual warranty. The major cause of roof claims is water intrusion. That is commonly caused when the roof covering is lifted and displaced by high winds. Your roof installation will have a specific roof uplift rating assigned. The second cause of roof claims is hail damage to the surface. The roof surface may also have a hail resistance rating assigned. The higher the uplift and hail rating are, the better the roof is expected to perform. The best roofing shingles come with a 15-year warranty against wind uplift and damage. The balance of the 50-year warranty is a depreciated scale of reimbursement for new roofing. Hail resistance ratings are based on UL testing protocols. There is some research suggesting that the UL rating system does not address the impact of climate change on hail size. For a deeper drive into roof warranties and roofing shingles see our previous Insight articles. The insurance companies have read warranty documents, and they use the 15-year-old number as the end of “new “roof time for your building. As your roof ages beyond this time, the higher the chance of your insurance company recommending replacement as a condition of coverage. Actionable Steps Now you have this information, what can you do about it? The first is to know the age of your roof. If you respond, “I don’t know” the insurance company will use a number from the roof inspection of something past the 15-year number. What is the roof material? Different materials from the same manufacturer can have widely different wind uplift and hail ratings. If you have the original contracts, then keep handy for material identification. If you are getting a new roof, ask about the best wind uplift that can be obtained. The added cost may be negligible compared to ongoing higher insurance costs. The same applies to hail resistance ratings. Get the specifications in writing and in the contract. Take photos of the roof material packaging and keep any specification sheets provided. Copy these items and send them to your insurance agent or company. If you get a roof related insurance recommendation or cancellation, engage a reputable roofing company to inspect and offer a written report on roof condition. If the inspection is favorable, you can use it to refute the automated evaluation. If the roof inspection reveals defects, repair them and provide documentation of the repairs. The Driehaus Difference This is the latest in a series of articles that we have published about this topic. This is not new material for our decision-making processes. We have the knowledge and experience that allow our staff to build stable and cost-effective insurance programs for our clients. Call 513-977-6860 or reach out via our website, www.driehausins.com to get us involved. We want to be your insurance provider.

While parents focus on getting their children ready for school with new supplies, clothing and technology, they may be missing the need for insurance policy changes. School residency should include a renters’ policy Establishing a new home at school is more than getting a new microwave and mini fridge. With a new residence there are exposures to loss from fire, theft and natural hazards that need your attention. Along with real property losses, the new location away from the main residence brings liability concerns. Injuries to visitors can give rise to a liability claim. Activities can cause property damage or injury to others. Without a liability policy that covers this location, you may be left without any protection from a loss. Many college residency agreements and most leases require a policy to be in place and the property owner be named as an additional insured. Failing to do this leaves you in breach of the contract you signed and can cause other legal issues for your family. A renters’ insurance policy is a cost effective method to manage this exposure. Education related travel Some programs have international trips and foreign study as part of the curriculum. Don't forget a spring break trip abroad as well. If your student is going to be traveling outside the United States, consider obtaining a travel insurance policy for the duration of the trip. These policies can extend health insurance, cover medical transportation expenses, offer auto liability coverage, trip interruption, baggage insurance and contain provisions for kidnap and ransom. Most domestic insurance program coverage areas are limited to the United States. Some schools and organizations will obtain travel insurance. If this is the case, get a sample policy for review. With international relations being in a transition stage for many countries, this is more important that ever. Where is the car parked? When your student moves to a new school, they will probably take their car with them. Auto insurance uses the garaging location of the vehicle as a rating factor. If the new garaging location would have generated more premium, the auto insurer may dispute coverage. The nominal costs incurred with most garaging changes pale in comparison a claim for a severe accident being denied based on inaccurate garage location. Technology Values Many renters’ or homeowners’ policies have a sublimit for off premises coverage for electronics. Check your policy or the proposed policy and compare those sub-limits to the value of the electronics going to school. Raising these coverage limits is generally a very inexpensive change. The Driehaus Difference We want to reduce the stress of back to school by helping you update your insurance program to reflect these changes in your life. Call us to discuss your needs and the solutions we have to provide the best insurance program for you. Reach out to use at 513-977-6860 or use any of the contact tools on our website, www.driehausins.com We want to be your insurance provider.

Most businesses need crime insurance, yet it is often overlooked and not discussed in detail. While an open-perils property policy may cover theft, it often excludes or sharply limits coverage for money and securities. Under a named-perils property policy, theft is typically excluded altogether. Employee theft is excluded under all property policies, so businesses with employees who handle money should carry crime insurance. Crime insurance must be carefully structured, with limits matched to your specific exposures. Even after a thorough review, some risks may remain uninsured, making additional coverage necessary. The Form The standard policy is the Commercial Crime Coverage Form written on a loss-sustained basis. That means the loss must occur during the policy term and be discovered within one year after the policy expires. This makes strong audit controls essential for timely detection. The standard commercial crime form includes eight optional coverages. Each must be selected individually, and each requires its own limit of insurance. Those limits should reflect the highest values at risk. The coverage offered by the form includes: Employee theft Forgery or alteration Theft of money and securities inside the premises Robbery or safe burglary inside the premises Robbery or theft outside the premises when in custody of a messenger or armored car service Computer fraud Funds transfer fraud Counterfeit money or money orders Employee Theft — is the most common source of claims. Review the policy’s definition of “employee” carefully, as independent contractors and volunteers may be excluded unless added by endorsement. Coverage does not apply to losses involving an employee whose prior dishonest acts were known to you. This includes conduct that occurred before hire. Ignoring known misconduct—or forgiving dishonest acts during employment—can void coverage for that employee. This reflects the duty of utmost good faith. Forgery — coverage protects against losses from forged or altered checks, bank drafts, and promissory notes drawn on your account. Although some banks may offer protection, carrying your own coverage lets your insurer handle disputes, helping preserve your banking relationship. Inside-the-Premises Coverage — for theft, robbery, and safe burglary applies to money and securities kept at your premises. Money, Securities, and other property outside the premises — coverage applies when items are in the custody of a messenger or armored car service. A messenger may be an employee assigned to transport the property. The policy limits coverage for precious metals, stones, pearls, and furs; if you have those exposures, a salesman’s floater is usually more appropriate. Computer Fraud — coverage applies only to events that originate inside your premises. That distinction is critical because it excludes losses caused by cyber intrusions. Those exposures require cyber insurance. This coverage also excludes important exposures, including credit card transactions, inventory shortages, and funds transfer losses. Funds Transfer Fraud — covers losses from sending funds to a fraudulent recipient, but only when the transfer originates within your organization. Losses caused by cyber intrusions or social engineering are not covered. Strong verification procedures are therefore essential. Counterfeit Money — coverage protects you if you unknowingly accept counterfeit currency or money orders. Traditional crime coverage has not fully kept pace with cyber risk and e-commerce, leaving significant gaps. A strong crime program should therefore be paired with cyber coverage that complements these protections. ERISA — Employee Retirement Income Security Act of 1974 The Employee Retirement Income Security Act of 1974 (ERISA) sets minimum standards for most voluntarily established private-sector retirement and health plans. It protects plan benefits by imposing strict duties on plan fiduciaries and guarding against fraud, mismanagement, and improper claim denials. ERISA bonding requirements: Coverage amount: The bond must equal at least 10% of the plan funds handled during the prior reporting year. Required limits: The minimum bond is capped at $500,000. If the plan holds non-qualifying assets, the limit may increase to as much as $1,000,000 for plans with employer securities. No deductibles: ERISA does not allow deductibles or retentions on the required bond amount. Commercial crime policies and ERISA A standalone ERISA bond covers only the employee benefit plan itself. However, many commercial crime policies can be endorsed to satisfy ERISA bonding requirements, allowing you to combine that mandatory protection with broader crime coverage for the rest of the business. Exclusions Exclusions may be the most important part of the crime form. As loss exposures have changed, so have the exclusions. The policy excludes loss of confidential information and the resulting financial harm, as well as indirect losses such as lost opportunities or lost income on funds. It also now excludes cyber extortion and ransomware. For that reason, cyber liability coverage remains an important complement to crime insurance. The Driehaus Difference Our knowledge of the forms, markets, and appetite for risk by different insurance companies means we can tailor the coverage to your needs. Understanding the synergy between cyber and crime coverage is a strength we can leverage for your protection. Call 5130977-6860 or use our website, www.driehausins.com, to reach us. We want to be your insurance provider.

The insurance industry has long been concerned with the impact of catastrophes (CAT) on their financial stability. The reinsurance market exists to smooth our results when a catastrophe strikes to maintain carrier solvency and market stability. Twenty-five years ago, the CAT concerns were hurricane and earthquakes. These exposures were geographically centered and were managed by monitoring the values accumulated in given areas. Managing and reporting your exposure accurately to the reinsurance market was the best practice. CAT Models and Insurance CAT management has changed with the emergence of new catastrophe exposures. Convective storms that develop high winds, tornados, ice storms and hail are common in the central United States. This was formerly a safe haven from coastal CAT exposures. Wildfire has emerged as a CAT hazard that is present in every region. Floods are increasing in frequency and severity with the changing weather patterns and continued development along waterways. These changes require more management that simply adding up values in a given region. The reinsurance markets pioneered the use of CAT models. These would locate exposures using mapping technology and using mathematical models based on past history, building construction and damage patterns, they could develop an estimate of the cost of a given event. Computers allowed Monte Carlo simulations to model thousands of event variables to arrive at a predicted outcome. The number produced was a damage estimate and based on the predicted frequency of events, a needed premium to support those losses. This tool changed how reinsurance was priced. It also placed a new burden on insurance companies to have their exposure data configured to support the modeling done by their reinsurance company. For the first decade of use, the models were a tool for the reinsurance markets. Once the primary insurance companies saw the potential benefit of these models, they moved from reinsurance to primary insurance markets. The CAT model developers added new models for wind, hail, wildfire, flood and convective storms to the hurricane and earthquake tool set. The age of digital exposure monitoring and modeling arrived. It is a fundamental pricing tool for your property insurance. If you do not embrace this technology, you are left out of the decision-making process. Data Becomes King This tool is based on data. With inadequate or missing data, the systems will fill in the blanks using averages. The averages are always slanted towards the most pessimistic outcome. If your CAT model results are high, the estimated loss will be within the normal Cat exposure loss dollars. This is a safety net for the insurance industry. The lower the quality of the data, the higher the margins for the insurer. Our role in this process is data management and data quality. The first variable for the CAT models is placing your property on a map via geocoding. If your address does not accurately map, the model will place it in the middle of the next available data set. Often a zip code, county or city boundary. This is a significant variable in exposure. A county level geocode that contains significant rural areas will have a higher wildfire loss estimate than an urban area. The quality of geocoding will impact this model result. A location without a zip code can geocode to a similar address that is far away from the intended location. An example of this was an inaccurate flood hazed determination that affected the placement of property insurance. The second major factor is the construction class, number of stories and square footage of the building. These factors are used when predicting the amount of damage that a structure suffers in a modeled event. This data is derived from historical claim information from past events. These factors are often incorrectly reported on insurance applications. Third party data providers such as tax assessors may also have flawed data. Bad data is often detrimental to your pricing. Another key element is the age of the building and updates to the building shell such as windows, roof and siding. The effective age of your building shell reflects the building codes that were in effect in your geographic area. As building codes evolve after CAT events to reduce the impact of the next event, newer construction is expected to perform better. Building age and updates are often not accurately recorded. A post hurricane Andrew study indicated that proper building code enforcement would have reduced the losses by 50%. This reinforced the need for accurate effective code dates for properties. This is not a variable easily accessed by third party data providers. It is a product of careful questions and reviews. The Driehaus Difference We have experience in running CAT models within insurance companies. We have developed internal tools to ensure that our data will properly geocode, has all of the needed elements and our surveys and interviews focus on accuracy of this data. Our data can be easily imported into models and allows a faster turnaround of data for quotes. We can get quotes on large property schedules faster because our data is designed to work with a CAT model environment. Leverage our knowledge to your benefit. Call us ta 513-977-6860 or reach us at www.driehausins.com to get us involved in your insurance program. We want to be your insurance provider.

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

The hard sell on home warranties is on TV and in your mailbox. Some of the direct mail items look like bills or seem to be from a utility company. All share the scary stories about how owning a home is now a nightmare because of repairs. The answer is buying a home warranty product. This a truly a time to read before you buy. Do not rely on the advertising, look at the actual product to see what is being offered. Limits Can Be Low These products have specific limits for each type of service line or home system covered by the program. A review of a major provider’s product indicated separate limits for different home systems and service lines. The limits were a maximum of $5,000 per incident / annual aggregate. Limits for some exposures were less. For underground lines, a $5,000 limit was also applicable to opening and closing public streets and roadways. Depending on the type of pavement present, this could be insufficient for the repairs. You may end up paying for a limit that only covers part of the costs. Roof leak repair was limited to $1,000 maximum and was offered on only the costliest program. Exclusions May Apply For most systems, the home warranty will limit or exclude some types of losses or sublimit your recovery. One plan limits refrigerant replacement cost at $10 a pound, which is much less than the actual costs of the product. There can be exclusions for certain types of systems, and you must see the actual agreement to understand these limitations. The sample agreement is not front and center on the marketing sites. You have to look closely to find your way to the sample agreement. One major provider excludes coverage for sewer lines that collapse and repair cost from root damage. Other plumbing exclusions included bathtubs, sinks, shower bases, and enclosures. Claims Handling You may be obliged to use the service line warranty company’s contractors to do the repairs. This removes control over the claim from the customer. If you ask for a second opinion, any costs related to providing that second opinion are deducted from your per event limit. If you engage your own contractor to make repairs the program may not respond to those costs. If you dispute the claim settlement you have to choose between small claims courts or binding arbitration. The small claims court is to limit the size of any recovery. One agreement even had a hammer clause that if you disputed the settlement and the outcome of the settlement was less than the original offer, you paid the legal fees for the service line company. Cost These programs are priced by zip code, and not with any real detail on the property being covered. There is no rating worksheet provided so you cannot see how the premium was developed. This is Not Insurance These products are warranty programs, not insurance. There may be a surety company standing behind the program who would step in if the warranty program fails to perform, but there are steps to follow and time limits related to determining a default by the warranty company. You do not have the protection of state regulators as with admitted insurance companies. Your Homeowners Policy Personal lines insurers are offering service line coverage on some comprehensive homeowners’ forms. A previous article on homeowners forms, What's in the form?, discusses the different homeowners coverage forms. One carrier offers a $25,000 limit for this exposure and the claim handling and settlement terms are the same for the balance of the policy. The cost for this is imbedded in a broadening endorsement that has other coverage extensions. This is a better limit, cost, and claim situation for you. This endorsement specifically includes losses related to root invasion, line failure due to breakage, wear and tear and rust and corrosion. The Driehaus Difference We take time to help you understand the options that are available to you in protecting your home. We can help you find the right insurance company, the right policy forms, and the most competitive costs. We do not provide prices based solely on your zip code. We need to spend some time with you to understand your exposure to loss and how we can build a program to protect your interests. This is not a “fifteen minutes will save you 15%” undertaking. We are willing to invest our time and expertise in helping you. You need to invest your time in sharing information with us to get you to the right insurance program. Call us at 513-977-6860 or use the contact tools at www.driehausins.com to get the process started. We want to be your insurance provider.

For most insurance companies, the frequency of water damage claims is the leading claim type. The costs of these events can be staggering. The level of disruption caused by the damage is often an additional source of claim dollars and lost time and revenue. The Exposure The exposure to a water damage claim is present in any building. From bathroom fixtures, kitchen appliances, laundry equipment, heating and cooling systems and host bibs in your home, any failure of these can cause significant loss and disruption to your life. In a commercial setting you have all of the above water leak sources and you can add process water and fire protection systems to the leak sources present. Technology There is water damage prevention technology on the market that can control the amount of damage from a water leak. The systems come in two different operating modes. Time and flow-based systems are installed on your main water supply line. They can either be programmed to suit your average and shut off water when the flow is outside of the norm you selected. Other systems have a software package that learns the pattern of water use in your home and turns off the water when abnormal flow is detected. These systems can deliver notification via a wireless network or be connected to an existing alarm system in the building. This is an active leak detection and control system, and it may qualify for an insurance premium discount. The second technology is a point of use detection system that uses water detectors to report a water leak. These systems generally do not shut off the water but sound an alarm locally and can be configured to use your wireless network to send you an alert. This technology requires you to place sensors throughout your property at any location where a leak can occur. Since the ability of these systems is related to the placement of the sensor, most insurance companies offer either no premium credits or very modest credit. How to Get Protection The time and flow technology shuts off your water and therefore should be installed by a professional plumber. The location of this valve is dependent on the water supply arrangement in your property and needs professional placement. The plumbing firm can suggest the systems that they have installed and provide support for the system. Avoid the temptation to order something from the internet and then ask the plumber to install it. If they are not familiar with the system, you may not get the support needed to make the system properly function. Before you install the system, get the product details from your plumber and share that information with your insurance agent. They can verify that the product your plumber suggests meets the needs for premium credit. After installation forward the product details and a copy of the invoice to your insurance agent. Tey will use this as documentation to your insurance company that a water damage control system is in place. Recommended Provider Driehaus Insurance Group recommends Hofmeyer Plumbing as a trusted provider of leak detection systems and a professional installer of the systems. You can reach Hofmeyer Plumbing at 513-921-1133 or via their website, www.hofmeyerplumbing.com The Driehaus Difference We understand the need for a professionally installed waterdamage control system. We can help you use the installation of this technology to leverage the best coverage and pricing for your insurance program. We also recommend adding low building temperature monitoring for freeze prevention. Use our experience to make your insurance program be a best fit for what you value most. Call us at 513-977-6860 or reach out via our website www.driehausins.com We want to be your insurance provider.

Smoke Damage after a Fire – A potential total Loss? The insurance business is based on the law of large numbers and the use of historic data to guide its decision making. The past history of fire losses have treated smoke damage as a secondary issue. It meant smoke damage after a fire was a cleanup issue and if needed seal with a coating to make it go away. The primary issues were appearance and odor. This approach was based on a hundred years of experience with fires that were fueled by wood and cellulosic material. Smoke and Soot Characteristics Wood smoke residue is a complex mixture of particulates and gases, primarily consisting of carbon (soot), condensed wood tars, and various organic compounds. It is often deposited as a fine, powdery, and sometimes sticky substance on surfaces, with its exact composition depending heavily on the wood type and combustion efficiency. This was the traditional fuel source for fires and the time to reach flashover in a room was over 25 minutes. Fast forward to today’s fuel package. It is now petroleum based synthetic materials and the flashover time has been reduced to under 5 minutes. Synthetic Materials (Plastics, PVC, Furniture): Releases toxic chemicals including hydrogen cyanide, benzene, styrene, and dioxins. Synthetic materials can generate up to 12.5 times more smoke particles per mass of material consumed than wood. Now add the fuel of a lithium-ion battery package. Lithium-ion battery smoke residue is a highly toxic, corrosive mixture primarily composed of carbon soot, fluoride compounds, volatile organic compounds (VOCs), and metal oxides (cobalt, nickel, copper, manganese). Key components include hazardous hydrogen fluoride gas, carbon monoxide, and electrolytes like ethylene. The response of the insurance industry to these changes has been uneven. Soot Litigation A court case involving smoke and soot as physical damage, Maxus vs Travelers, was based on soot from a fire that occurred during a builder’s risk project in Birmingham, Alabama in 2018. The initial position by Travelers was that there was no “physical damage”, so the soot deposits were not covered by insurance. The soot was not in the building of fire origin, so no damage occurred. The presence of dangerous chemicals in soot that was distant from the fire was discovered by the building owner and caused the landlord of the occupied buildings to evacuate the buildings due to a perceived risk from these products of combustion. This was reported to Travelers 6 months after the original fire. The landlord wanted coverage for the remediation of the soot and the lost income from the evacuated buildings. Travelers declined the claim for the other buildings. The case was in litigation until 2023. Travelers lost the court case and were ordered to pay the claim. Travelers appealed the case and in August 2025 the appeals court upheld the judgement that Travelers should pay the damages. This case is important as the occurrence was not in California. There have been a number of lawsuits in California based on wildfire soot damage to unburned homes. This was originally thought to be a California issue. The decisions in Alabama would suggest that the genie is out of the bottle. Given the higher level of toxins present, it is no longer acceptable to simply wipe down and paint over the soot from a fire. In many cases the surface materials must be removed and replaced. These are soft goods such as carpets, furniture and fabrics to permeable surfaces such as drywall and wood flooring. Mechanical systems such as duct work and furnaces can be contaminated. This means small fires that generate a lot of smoke make the loss much more expensive. This is a game changer for many insurance companies. Are Residential Sprinklers a Solution? Smaller fires that are controlled faster would reduce the soot generation. We have the technology to do this. One way to reduce the fire loss would be installation of residential fire sprinkler systems. Originally added to the model codes in 2005, legislators have routinely stripped residential sprinkler systems out of the code adopted by state and local governments. The stated reason is that the cost of the sprinkler system would make homes unaffordable. The insurance industry was silent on this practice. Perhaps findings that soot from the fire can cause a constructive total loss will change this view. The cost of a sprinkler system may now be a very reasonable expense. Stay Tuned to this Channel Now that the genie is out of the bottle, the insurance industry will respond to the profit threat. There are generally two paths that insurance companies take when confronted by a new loss exposure, excluding it or pricing for it. Pricing for the exposure may not be a practical option. For admitted companies the states regulate rates. Converting small losses into large losses across the board would create a cost increase that would be very difficult to get regulatory approval. The court cases have shown that existing language in the policy did not preclude coverage. Watch for stronger, more specific language to emerge. Look at the Covid related exclusions that are now common as a model for these exclusions. How to add back the coverage will be the next hurdle. The Driehaus Difference We recognize this issue and it reinforces the need to have adequate limits of insurance for your property. If a small fire can trigger a total loss due to toxic soot residue, the application of a coinsurance penalty would be a financial threat to you. Since we recognize this issue, we can be an advocate for you and help you manage the claims process. We want to be your insurance provider. Call our office, 513-977-6860 or reach out to use via our website, www.driehausins.com

The eBike has changed the nature of the bicycle forever. It is now practical to commute for longer distances, over more challenging terrain and at higher speeds. eBikes are generally described within three different classes. Class 1 Electric Bicycle — A bicycle equipped with fully operable pedals and an electric motor of less than 750 watts that provides assistance only when the rider is pedaling and ceases to provide assistance when the bicycle reaches the speed of 20 miles per hour. Class 2 Electric Bicycle — A bicycle equipped with fully operable pedals and an electric motor of less than 750 watts that may provide assistance regardless of whether the rider is pedaling and is not capable of providing assistance when the bicycle reaches the speed of 20 miles per hour. Class 3 Electric Bicycle — A bicycle equipped with fully operable pedals and an electric motor of less than 750 watts that provides assistance only when the rider is pedaling and ceases to provide assistance when the bicycle reaches the speed of 28 miles per hour. State and local laws use these classes to define where the bikes can be used and if a helmet is required. Most laws treat eBikes in a similar fashion to bicycles with no specific requirements for operator licensing or vehicle registration. The laws clearly differentiate eBikes from mopeds and motorcycles. Does this mean you do not need insurance for an eBike? Homeowners Insurance Your homeowner’s insurance policy will generally have an exclusion for motor vehicles. There may be coverage for vehicles that are not licensed for road use and are used to service your premises or are designed to assist the handicapped. Coverage may be present if the vehicle is designed solely for off premises use. In the case of an eBike, it is not a premises service vehicle, and it is not designed and intended as an aid for a handicapped person. So, there is probably not going to be coverage from your homeowner’s policy if there is an accident that causes property damage or bodily injury. Given the higher weight and speed of an eBike the potential for serious injury and property damage should be considered. Personal Auto Insurance Your personal auto policy generally contains an exclusion for vehicles with fewer than 4 wheels or recreational vehicles. This clearly excludes coverage for an eBike. Personal auto policies may offer some coverage if the vehicle is used off road. Since many eBikes are used on the public streets, this would preclude coverage for these eBikes. Policies for motorcycles and mopeds may not be appropriate as those vehicles are required to be licensed. Most eBikes do not require registration. They may not fit the definitions within these policies. Coverage Options If the eBike is not covered by the standard auto and homeowners’ policy, what are your options? There are endorsements that can be added to your auto policy to cover these exposures. The endorsements may require a description of the vehicles, and you must designate the limits of coverage for the insurance to be provided. The endorsement may be similar to a golf cart endorsement, so review the coverage carefully. Some insurers are offering endorsements to their homeowners’ insurance to add this coverage. You need to carefully evaluate the language of these endorsements to see that the coverage offered is broad enough for your purposes. Many companies may offer property insurance, but keep the liability exclusuions. In either case be sure the policy you endorse can be included in any umbrella liability policy you have in place. Some of these endorsements originated with toy type vehicles and the size, weight and speed of an eBike may create a loss that requires higher liability limits. Standalone eBike insurance Some eBike dealers offer standalone policies. While this may seem to be an easy option, the ability to increase the liability limits may not be available. Your umbrella insurer may not attach to this policy if the terms, conditions and insurer are not acceptable to the umbrella carrier. The Driehaus Difference It is important to discuss this type of risk with an insurance professional. We can craft your personal lines insurance program to cover this type of exposure. If you did not know that it was not covered, you would not ask for the coverage. The myth of only paying for what you need assumes that your knowledge of insurance products makes you an informed buyer. We want to be your insurance provider. We want to be your insurance provider. Call us at 513-677-6860 or reach out via our website www.driehausins.com

Special Event Insurance There can be many events and celebrations in your life. Those that you host and organize may have some loss exposures that fall outside of your personal lines insurance program. You can reduce the stress around these events by placing a special events insurance policy to relieve the financial burden if things do not go as planned. Here are some of the things that a special event policy will address. Event Cancellation – From a winter storm that makes travel impossible to a severe storm that disrupts your outdoor event, you cannot control mother nature. If a key family member is incapacitated that can also cancel your plans. Reimbursement is available for transportation, food, catering, property and equipment rentals, hall, and location rental expenses. Check the policy for any cancellation restrictions that may apply. Special Attire – From wedding dresses to period correct costumes for an event there can be expenses related to having the right look. If your event involves jewelry or wedding rings, coverage for loss or theft can be provided. Gift Coverage - From wedding gifts to silent auction items, your event may have a number of high value items present. Special event insurance programs can provide for theft and damage protection for these items. Photo / Video - With social media comes the need for photography and video services at your event. If the provider fails to appear or loses your images, there can be funds made available to reconvene to take new photos or videos. Lost Deposits - If a vendor or venue should go out of business or declare bankruptcy before your event, special event insurance can cover those lost deposits and expenses. Call to Duty - With many of our citizens serving in the armed forces, a return to duty call or a revocation of leave can disrupt the best laid plans. Special event coverage can recover costs from cancellation related to a call to duty event. To enhance your liability protection against bodily injury or property damage claims you may add these following coverages to a special events policy. General Liability - Many venues require liability insurance from the user. Special event insurance can meet those contractual requirements. Your personal policy may not offer the coverage for an event away from your residence. Liquor Liability - If there are alcoholic beverages served at your event, there may be exposure to liquor liability. Since the event is not at your residence, your homeowners’ insurance may not respond to a claim. Special event insurance can offer this protection. The Driehaus Difference We understand the importance of tees events in your life. We also recognize that your personal insurance program may not offer the right coverage for the event. Special event insurance is a very cost-effective method to protect the unique loss exposures presented. Call us ta 513-977-6860 or reach out via our website https://www.driehausins.com/ for professional insurance assistance. We want to be your insurance provider.

A Professional Guide for Employers Clear Compliance Steps for Safety Managers and HR Professionals Introduction OSHA recordkeeping and reporting are essential for tracking workplace injuries and illnesses, improving safety, and ensuring regulatory compliance. Accurate records help employers identify hazards, implement controls, and demonstrate their commitment to workplace health and safety. Enhanced Reporting Program for High Hazard Industries Establishments with 100 or more employees in designated high hazard industries (see Appendix B to Subpart E of 29 CFR 1904) must electronically submit detailed information about each recordable injury and illness from their previous calendar year's OSHA Form 300 and Form 301 to OSHA. What to Report: Include the date, physical location, severity of the injury or illness, details about the worker, and how the incident occurred. Applicability: Check if this requirement applies to your establishment at https://www.osha.gov/itareportapp Data Protection: Submitted data will be controlled to prevent identification of specific individuals. This information helps OSHA, prospective employees, and researchers better define workplace hazards and controls. Reporting Requirements General Rule: Employers with 10 or more employees must keep records of serious work-related injuries and illnesses. Some low hazard employers are exempt; see the list of exempt employers for details. Minor Injuries: Cases requiring only first aid do not need to be recorded. Serious Injury Reporting: All employers, regardless of size or industry, must report: Worker fatalities within 8 hours Amputations, loss of an eye, or hospitalizations within 24 hours These events can be Reported online or by phone Electronic Submission Requirements OSHA requires certain employers to electronically submit injury and illness data. The requirements differ by establishment size and industry: Employers with 250 or More Employees: Must electronically submit their OSHA Form 300A summary data annually. Employers with 20–249 Employees in Designated High Hazard Industries: Must also electronically submit OSHA Form 300A summary data. See the list of designated establishments for details. Submission Deadline: March 2nd each year for the previous calendar year's data. How to Submit: Use the Injury Tracking Application (ITA). Note updated sign-in procedures since October 2022. Maintaining and Posting Records Retention: OSHA logs and supporting records must be kept at the worksite for five years. Annual Posting: From February through April, employers must post a summary of the previous year's injuries and illnesses (OSHA 300A Form) at the workplace. Fillable forms are available from OSHA. Incident Rate Calculations Employers can use OSHA 300 data to calculate key safety metrics, such as the Total Incident Rate and the Days Away, Restricted, or Transferred (DART) rate. Total Incident Rate: Indicates the frequency of all recordable injuries and illnesses per 100 full-time employees per year. DART Rate: Measures the rate of workplace injuries and illnesses resulting in days away from work, restricted duties, or job transfers. Calculation Example: Suppose your company had 4 DART cases last year and 100,000 total hours worked. DART Rate = (Number of DART cases × 200,000) ÷ Total hours worked DART Rate = (4 × 200,000) ÷ 100,000 = 8.0 This means your DART rate is 8.0 per 100 full -time employees . Benchmark your rates using the Bureau of Labor Statistics calculator. Use of Incident Rates Incident and DART rates are often required for contractor and supplier qualification during bidding processes. Insurers may use these rates to assess workers’ compensation and general liability risks. Higher-than-average rates can negatively affect your insurance terms and premiums. First Aid Only Cases Only serious injuries and illnesses are recordable. OSHA defines what qualifies as first aid; familiarize yourself with these criteria to avoid over-reporting. See the OSHA first aid definition for guidance. The Driehaus Difference Insurance without risk management is incomplete. Understanding OSHA rules, recordkeeping, and how data is used in business and insurance is crucial. Need assistance? Visit www.Driehausins.com or call 513-977-6860 for expert help managing your OSHA compliance and risk management program.

Indentifying and Knowing When we ask a client who their insurance company is they often answer with the name of their agent. We are flattered that you identify with Driehaus Insurance, but beyond our company is the insurer who provides the policy terms and conditions that will ultimately determine your claim settlement. You should know exactly who this is. Here are some of the terms that are important in identifying and knowing your insurance company. Admitted versus Non-Admitted Status Carriers can be an admitted carrier who is licensed in the state you are domiciled in and is subject to regulations and reviews by that state insurance authority. These are often called standard market companies. The products, rates and practices of these firms are all subject to state regulation. A non-admitted carrier is not licensed by the state and does not have to submit its forms, pricing, and practices to state regulations. Non-admitted carriers are often referred to as Excess and Surplus (E&S) carriers. These markets are used when standard markets decline to offer coverage for your exposures. These markets may also offer coverage for emerging risks, high hazard exposures and new types of exposures that the standard market has not yet covered. It is important that you know the difference as the forms and conditions of coverage for a non-admitted carrier may be different from those offered by a standard carrier. One area of difference with E&S companies is that many of their products are written on claims made basis. This means you have coverage for claims that are reported in the policy period. This is different from a standard market occurrence form where coverage for any claim that occurs during a given covered policy term is covered regardless of reporting date. If you have any exposures that have a potential long reporting lag, this can be a significant concern. If you are new to claims made coverage, be sure to discuss this with your agent. Insurer Financial Ratings You need to have an insurer that will have the funds available to pay your claim. Insurance carriers are rated by several services that offer their opinion of the financial strength of the carrier. AM Best is the most prominent service provider with the following ratings: All of these ratings are in the opinion of AM Best. Best Financial Rating Scale Rating Categories Rating Symbols Rating Notches* Category Definitions Superior A+ A++ Assigned to insurance companies that have a superior ability to meet their ongoing insurance obligations Excellent A A- Assigned to insurance companies that have an excellent ability to meet their insurance obligations Good B+ B++ Assigned to insurance companies that have an good ability to meet their insurance obligations Fair B B- Assigned to insurance companies that have a fair ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions Marginal C+ C++ Assigned to insurance companies that have a weak ability to meet their ongoing insurance obligations. Financial strength is very vulnerable to adverse changes in underwriting and economic conditions Weak D - Assigned to insurance companies that have a poor ability to meet their ongoing insurance obligations. Financial strength is extremely vulnerable to adverse changes in underwriting and economic conditions *Each Strength Rating Category from “A+” to “C” includes a Rating Notch to reflect a graduation in financial strength. In addition to the overall rating, there is also a Financial Size Category Rating assigned to each carrier. This is based on their policyholder surplus (PHS). The larger the surplus the more resources the carrier has to pay claims. Financial Size Category Table Class Adjusted PHS ($ Millions) Class Adjusted PHS ($ Millions) I Less than 1 IX 250 to 500 II 1 to 2 X 500 to 750 III 2 to 5 XI 750 to 1,000 IV 5 to 10 XII 1,000 to 1,250 V 10 to 25 XIII 1,250 to 1,500 VI 25 to 50 XIV 1,500 to 2,000 VII 50 to 100 XV 2,000 or greater VIII 100 to 250 Your agent should be able to provide these ratings to you as part of the quoting process. They are important as some lenders and contracts specify ratings and size categories for insurance policies. If your umbrella or excess liability policy is placed separately from your primary carrier, this policy may have rating and size requirements for the underlying insurance policies. Agency or Broker Relationship Depending on the carrier involved the relationship between that company and your insurance agent can vary. For most standard admitted companies the agent has a contract with that insurance company and acts as their agent. Their first duty is to the insurance company and the insurance company pays their commission and revenue. Agencies may represent multiple insurance companies, or the agent can be an employee of a single insurer. A broker arrangement is when the insurance agent is working for the insured and solicits coverage from carriers with limited or no sales commission. The insurance agent has its first duty to the insured. The agent derives their revenue from fees for marketing and placing coverage and fees for ongoing policy service. This is a common arrangement for very large insurance programs. It can also be used when the policies being placed are E&S policies and the insurance carrier does not offer commission to the agent. A hybrid arrangement can exist when an independent agent seeks coverage with carriers, they are not licensed with via a wholesale broker. The wholesale broker has access to multiple carriers and makes that available to independent agencies. Wholesale placements are generally done at reduced commission for the retail agent as the wholesale agent is taking compensation for the placement. This arrangement offers the retail agent a much wider marketplace for coverage. The Driehaus Difference We are an independent agency representing a number of insurance carriers. We have relationships with wholesale brokers to expand our reach into alternative markets. We have not pursued broker relationships or offering services outside of an insurance relationship. We want to be your resource for insurance information and assistance. Knowing the type of carrier, their strength ratings, and the type of arrangement between the insurance company and the agent is information you need to know and to understand. Call us at 513-977-6860 or contact us on the internet at www.driehausins.com and we can discuss these business practices with you in detail.