preparing for a loss prevention inspection
TRANSCRIPT
Ten Qualities of a Ten Qualities of a Well-Protected FacilityWell-Protected Facility
Ten Qualities of a Ten Qualities of a Well-Protected FacilityWell-Protected Facility
Joshua M. Gerkin Account Executive FM Global – Cleveland Operations
Today’s ObjectivesToday’s Objectives
• Brief introduction to FM Global Brief introduction to FM Global • Ten QualitiesTen Qualities• Fire Test Videos – SamplesFire Test Videos – Samples• ResourcesResources• Does this stuff really work???Does this stuff really work???
FM Global – Value PropositionFM Global – Value Proposition
• Protect the value created by our clients' Protect the value created by our clients' businesses. businesses.
• Assess and engineer risk, help prevent and Assess and engineer risk, help prevent and mitigate loss, and provide capital for risk mitigate loss, and provide capital for risk transfer purposes. transfer purposes.
FM Global – Quick FactsFM Global – Quick Facts
Date EstablishedDate Established 18351835Organizational StructureOrganizational Structure MutualMutualA.M. Best Rating (’08)A.M. Best Rating (’08) A+ SuperiorA+ SuperiorFitch Rating (’08)Fitch Rating (’08) AA Very StrongAA Very Strong
Gross PremiumsGross Premiums $4.7B$4.7BPolicyholder’s SurplusPolicyholder’s Surplus $6.3B$6.3BAssetsAssets $13.0B$13.0B
Scope of OperationsScope of Operations WorldwideWorldwideNumber of EmployeesNumber of Employees 4,8004,800Number of EngineersNumber of Engineers 1,500+1,500+
FM Global – Quick FactsFM Global – Quick Facts
• Field Engineers – 953Field Engineers – 953– Avg. Experience – 12+ yrs.Avg. Experience – 12+ yrs.
– Annual Inspections – Annual Inspections – 60,000+ 60,000+ (Global)(Global)
• Account Engineers - 248Account Engineers - 248– Avg. Experience – 16+ yrs.Avg. Experience – 16+ yrs.
• Staff Engineers – 47Staff Engineers – 47– Avg. Experience 19+ yrs.Avg. Experience 19+ yrs.
4800 Employees, 1500+ are 4800 Employees, 1500+ are Engineers Engineers
FM Global – ValidationFM Global – Validation
• Combined Ratio <80% for the last 5 years.Combined Ratio <80% for the last 5 years.• Customer retention rate >90% annually.Customer retention rate >90% annually. • Best Global Property Insurer and Best Property Best Global Property Insurer and Best Property
Insurer in North America by Insurer in North America by Global FinanceGlobal Finance MagazineMagazine
• First commercial property insurer ever to receive the First commercial property insurer ever to receive the Queens Awards for EnterpriseQueens Awards for Enterprise
• European Business Insurer of the Year by European Business Insurer of the Year by Strategic Strategic RiskRisk Magazine. Magazine.
Ten Qualities of aTen Qualities of aWell-Protected FacilityWell-Protected Facility
1 – Commitment to Loss 1 – Commitment to Loss PreventionPrevention
• Formally documentedFormally documented
• From the top down… C-level management to hourly From the top down… C-level management to hourly employees employees
• Property loss control measures protect not only the Property loss control measures protect not only the companies assets, but individual jobs as well. companies assets, but individual jobs as well.
2 – Suitable Construction2 – Suitable Construction
• Consider Nat Haz ExposuresConsider Nat Haz Exposures– earthquake, windstorm, floodearthquake, windstorm, flood
• Consider Occupancy ExposuresConsider Occupancy Exposures– warehousing, manufacturingwarehousing, manufacturing
• Consider Special HazardsConsider Special Hazards– pressure resistant, pressure relieving, damage limiting pressure resistant, pressure relieving, damage limiting
• Site SelectionSite Selection– ample water supply, limited nat hazample water supply, limited nat haz
• FlammabilityFlammability– wood, plastics wood, plastics
3 – Sprinklers Where Needed3 – Sprinklers Where Needed
• Occupancy Specific NeedsOccupancy Specific Needs– combustible construction, materials or processescombustible construction, materials or processes
• Automatic Detection and ControlAutomatic Detection and Control– always on dutyalways on duty
• Minimizes DamageMinimizes Damage– limited fire/water damage compared to alternative limited fire/water damage compared to alternative
• Life Safety Implications Life Safety Implications – affected area survivabilityaffected area survivability
Operation of Various Sprinkler Heads Operation of Various Sprinkler Heads
4 – Special Hazards Protection4 – Special Hazards Protection
• Flammable LiquidsFlammable Liquids– containment, drainage, passive physical controls, containment, drainage, passive physical controls,
ventilation, employee handling training, spill response ventilation, employee handling training, spill response
• Combustible DustsCombustible Dusts– housekeeping, explosion ventinghousekeeping, explosion venting
• Flammable GasesFlammable Gases
• Ignition Source Control!!!Ignition Source Control!!!
• Special ProtectionSpecial Protection– foam, gaseous suppression foam, gaseous suppression
Aerosols Aerosols
Flammable Liquids Flammable Liquids
5 – Adequate Water Supply5 – Adequate Water Supply
• Adequate Flow and Pressure for DemandAdequate Flow and Pressure for Demand
• Numerous PossibilitiesNumerous Possibilities– public, gravity tank, fire pump(s), natural body, public, gravity tank, fire pump(s), natural body,
combinationcombination
• Occupancy ChangesOccupancy Changes– new construction, new processesnew construction, new processes
• Local Area GrowthLocal Area Growth
6 – Ongoing Fire Prevention 6 – Ongoing Fire Prevention ProgramsPrograms
• Fire ProtectionFire Protection– valves, pumps, alarms, hoses, hydrants, tanks, fire doorsvalves, pumps, alarms, hoses, hydrants, tanks, fire doors
• HousekeepingHousekeeping
• Special Hazards Protection SystemsSpecial Hazards Protection Systems
• SecuritySecurity
• Impairment ProtectionImpairment Protection
• Hot WorkHot Work
• Managing ChangeManaging Change
7 – Good Housekeeping7 – Good Housekeeping
• More than just looking neat…More than just looking neat…
• Prompt Waste DisposalPrompt Waste Disposal
• Proper Material Handling PracticesProper Material Handling Practices
• Minimization of Build-upsMinimization of Build-ups– dusts, residues, or any other aggravating component dusts, residues, or any other aggravating component
8 – Maintenance of Buildings & 8 – Maintenance of Buildings & Equipment Equipment
• ElectricalElectrical– clean, cool and dryclean, cool and dry
• MachineryMachinery– friction, alignment, vibration, periodic replacement friction, alignment, vibration, periodic replacement
• BoilersBoilers– safety controls, fuel leaks, overheating, overpressuresafety controls, fuel leaks, overheating, overpressure
9 – Emergency Response Team & 9 – Emergency Response Team & Public Fire Service Public Fire Service
• Person in ChargePerson in Charge
• NotifierNotifier
• Control Valve OperatorControl Valve Operator
• Fire Pump OperatorFire Pump Operator
• Fire Squad*Fire Squad*
• Pipe FitterPipe Fitter
• ElectricianElectrician
• Salvage SquadSalvage Squad
10 – Protection Against Exposure 10 – Protection Against Exposure HazardsHazards Fire, Windstorm, Flood, Earthquake & Fire, Windstorm, Flood, Earthquake & CollapseCollapse
• Roof Deck/Coverings Uplift ResistanceRoof Deck/Coverings Uplift Resistance
• FERP’s (Flood Emergency Response Plans)FERP’s (Flood Emergency Response Plans)
• Permanent Flood ProtectionPermanent Flood Protection– exterior openings, siteexterior openings, site
• Seismic DesignSeismic Design– bracing, anchoring, seismic gas shutoff valvesbracing, anchoring, seismic gas shutoff valves
• Roof LoadsRoof Loads– ponding, snowponding, snow
Ten QualitiesTen QualitiesConclusionConclusion
• EXPOSURE DRIVENEXPOSURE DRIVEN– Fully understand plausible loss scenarios and their Fully understand plausible loss scenarios and their
relative likelihood.relative likelihood.
– Drive an understanding of hazards most likely to Drive an understanding of hazards most likely to cause loss, and therefore warrant most of our joint cause loss, and therefore warrant most of our joint efforts.efforts.
– Provide a more effective service resulting in Provide a more effective service resulting in improved risk reduction. improved risk reduction.
– Highlight the most significant vulnerabilities to a Highlight the most significant vulnerabilities to a particular facility.particular facility.
Test VideosTest Videos
• Focus on key items:Focus on key items:– Initial fire growth rate.Initial fire growth rate.
– Time to reach top of the test array and sprinkler Time to reach top of the test array and sprinkler activation.activation.
– Radiant heat exposing target array. Radiant heat exposing target array.
– Smoke production.Smoke production.
– Overall test time or time to reach limits of Overall test time or time to reach limits of sprinkler protection design – when will the fire sprinkler protection design – when will the fire department arrive?department arrive?
Test VideosTest VideosTest VideosTest Videos
ESFR Obstructions ESFR Obstructions
Idle Pallets Idle Pallets
Resources available to youResources available to you
• 173 Years of Research 173 Years of Research • Approvals GuideApprovals Guide• Resource CatalogResource Catalog• Seminars and TrainingSeminars and Training
• Free Data Sheets!!! Free Data Sheets!!!
www.fmglobaldatasheets.comwww.fmglobaldatasheets.com • FM Global Grant ProgramFM Global Grant Program
Resources – Resources – www.fmglobal.comwww.fmglobal.com
Specializing in the Training of:Specializing in the Training of:
• Industrial Emergency Response PersonnelIndustrial Emergency Response Personnel• Industrial Fire Brigades (Incipient, Interior Structural, Industrial Fire Brigades (Incipient, Interior Structural,
and Advanced Exterior)and Advanced Exterior)• Hazardous Materials Emergency Response TeamsHazardous Materials Emergency Response Teams• Technical Rescue Teams (Confined Space/ High Technical Rescue Teams (Confined Space/ High
Angle)Angle)• Inspection and Maintenance Personnel (Fire Protection Inspection and Maintenance Personnel (Fire Protection
Systems)Systems)• Emergency Response Leaders, Directors, Managers and Emergency Response Leaders, Directors, Managers and
TrainersTrainers
Resources – Resources – www.tsblosscontrol.comwww.tsblosscontrol.com
Does this stuff really work???Does this stuff really work???
0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000
Effective Emergency Response
Ineffective Emergency Response
1871 Losses
410 Losses
10 yr. fire response incidents vs. average gross loss (US$)
Does this stuff really work?Does this stuff really work?The impact of Human ElementThe impact of Human Element
Does this stuff really work?Does this stuff really work?The impact of Human ElementThe impact of Human Element
Does this stuff really work?Does this stuff really work?Two types of LossesTwo types of Losses
Does this stuff really work?Does this stuff really work?Two types of LossesTwo types of Losses
Two types of loss
Individual "Risk"67%
Aggregate33%
Does this stuff really work?Does this stuff really work?Aggregate Loss ExampleAggregate Loss Example
Does this stuff really work?Does this stuff really work?Aggregate Loss ExampleAggregate Loss Example
650
220
0
100
200
300
400
500
600
700
Gro
ss L
oss
(US$
M)
"Modeled" Wind LossProjection
Actual FM Global GrossWind Loss
FM Global Windstorm Loss from 2004 HurricanesFM Global Windstorm Loss from 2004 Hurricanes
Client benefit fromnatural catastrophe
engineering = $430M
Does this stuff really work?Does this stuff really work?Aggregate Loss ExampleAggregate Loss Example
Does this stuff really work?Does this stuff really work?Aggregate Loss ExampleAggregate Loss Example
985
505
0
200
400
600
800
1000
Gro
ss L
oss
(US$
M)
Projected Loss Actual Loss
FM Global Windstorm Loss from 2005 KatrinaFM Global Windstorm Loss from 2005 Katrina
49% estimated reduction from projected loss attributable to risk
improvement
Note: Projected loss based on average experience for unprotected properties in similar
events
Does this stuff really work?Does this stuff really work?Aggregate Loss ExampleAggregate Loss Example
Does this stuff really work?Does this stuff really work?Aggregate Loss ExampleAggregate Loss Example
Locations with:Locations with:
Share of Share of Total Total
Insurable Insurable ValueValue
Share of Share of Gross Gross LossLoss
Fully completed Fully completed windstorm windstorm recommendations recommendations
58%58% 18%18%
Open windstorm Open windstorm recommendationsrecommendations 42%42% 82%82%
FM Global’s gross wind losses in
Katrina were $505M
• By comparing relative loss levels of the two groups, it appears By comparing relative loss levels of the two groups, it appears FM Global clients who completed recommendations reduced FM Global clients who completed recommendations reduced their overall loss by more than $450M in Katrina alone. their overall loss by more than $450M in Katrina alone.
• Losses at locations with outstanding recommendations were Losses at locations with outstanding recommendations were 6.2 times higher per unit of TIV.6.2 times higher per unit of TIV.
Protecting the value business creates…Protecting the value business creates…Thank You!Thank You!
Protecting the value business creates…Protecting the value business creates…Thank You!Thank You!