Preparing for a Loss Prevention Inspection
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Preparing for a Loss Prevention Inspection



video hosted and uploaded via Hamilton Safety Council website via approval of FM Global sales staff... proprietary fire test videos disabled.

video hosted and uploaded via Hamilton Safety Council website via approval of FM Global sales staff... proprietary fire test videos disabled.



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  • Background: FM Global is the result of the 1999 merger of the Factory Mutual System companies — Allendale Insurance, Arkwright and Protection Mutual. Factory Mutual, the insurance companies’ jointly owned engineering arm, became part of FM Global effective with the merger. Our clients: FM Global is a global underwriter of property insurance for clients representing a variety of manufacturing and service industries, as well as public entities and educational institutions. Additionally, FM Global has teams of specialists who focus their industry-specific expertise on the needs of high-challenge occupancies, including chemical and forest products. Property Insurance: FM Global offers a full range of both broad-based and specialized risk management services and insurance products, including: all risk, cargo, boiler and machinery and non-HPR (Highly Protected Risk) commercial property.

Preparing for a Loss Prevention Inspection Preparing for a Loss Prevention Inspection Presentation Transcript

  • Ten Qualities of a Well-Protected Facility Joshua M. Gerkin Account Executive FM Global – Cleveland Operations
  • Today’s Objectives
    • Brief introduction to FM Global
    • Ten Qualities
    • Fire Test Videos – Samples
    • Resources
    • Does this stuff really work???
  • FM Global – Value Proposition
    • Protect the value created by our clients' businesses.
    • Assess and engineer risk, help prevent and mitigate loss, and provide capital for risk transfer purposes.
  • FM Global – Quick Facts Date Established 1835 Organizational Structure Mutual A.M. Best Rating (’08) A+ Superior Fitch Rating (’08) AA Very Strong Gross Premiums $4.7B Policyholder’s Surplus $6.3B Assets $13.0B Scope of Operations Worldwide Number of Employees 4,800 Number of Engineers 1,500+
  • FM Global – Quick Facts
    • Field Engineers – 953
      • Avg. Experience – 12+ yrs.
      • Annual Inspections – 60,000+ (Global)
    • Account Engineers - 248
      • Avg. Experience – 16+ yrs.
    • Staff Engineers – 47
      • Avg. Experience 19+ yrs.
    4800 Employees, 1500+ are Engineers
  • FM Global – Validation
    • Combined Ratio <80% for the last 5 years.
    • Customer retention rate >90% annually.
    • Best Global Property Insurer and Best Property Insurer in North America by Global Finance Magazine
    • First commercial property insurer ever to receive the Queens Awards for Enterprise
    • European Business Insurer of the Year by Strategic Risk Magazine.
  • Ten Qualities of a Well-Protected Facility
  • 1 – Commitment to Loss Prevention
    • Formally documented
    • From the top down… C-level management to hourly employees
    • Property loss control measures protect not only the companies assets, but individual jobs as well.
  • 2 – Suitable Construction
    • Consider Nat Haz Exposures
      • earthquake, windstorm, flood
    • Consider Occupancy Exposures
      • warehousing, manufacturing
    • Consider Special Hazards
      • pressure resistant, pressure relieving, damage limiting
    • Site Selection
      • ample water supply, limited nat haz
    • Flammability
      • wood, plastics
  • 3 – Sprinklers Where Needed
    • Occupancy Specific Needs
      • combustible construction, materials or processes
    • Automatic Detection and Control
      • always on duty
    • Minimizes Damage
      • limited fire/water damage compared to alternative
    • Life Safety Implications
      • affected area survivability
  • Operation of Various Sprinkler Heads
  • 4 – Special Hazards Protection
    • Flammable Liquids
      • containment, drainage, passive physical controls, ventilation, employee handling training, spill response
    • Combustible Dusts
      • housekeeping, explosion venting
    • Flammable Gases
    • Ignition Source Control!!!
    • Special Protection
      • foam, gaseous suppression
  • Aerosols
  • Flammable Liquids
  • 5 – Adequate Water Supply
    • Adequate Flow and Pressure for Demand
    • Numerous Possibilities
      • public, gravity tank, fire pump(s), natural body, combination
    • Occupancy Changes
      • new construction, new processes
    • Local Area Growth
  • 6 – Ongoing Fire Prevention Programs
    • Fire Protection
      • valves, pumps, alarms, hoses, hydrants, tanks, fire doors
    • Housekeeping
    • Special Hazards Protection Systems
    • Security
    • Impairment Protection
    • Hot Work
    • Managing Change
  • 7 – Good Housekeeping
    • More than just looking neat…
    • Prompt Waste Disposal
    • Proper Material Handling Practices
    • Minimization of Build-ups
      • dusts, residues, or any other aggravating component
  • 8 – Maintenance of Buildings & Equipment
    • Electrical
      • clean, cool and dry
    • Machinery
      • friction, alignment, vibration, periodic replacement
    • Boilers
      • safety controls, fuel leaks, overheating, overpressure
  • 9 – Emergency Response Team & Public Fire Service
    • Person in Charge
    • Notifier
    • Control Valve Operator
    • Fire Pump Operator
    • Fire Squad*
    • Pipe Fitter
    • Electrician
    • Salvage Squad
  • 10 – Protection Against Exposure Hazards Fire, Windstorm, Flood, Earthquake & Collapse
    • Roof Deck/Coverings Uplift Resistance
    • FERP’s (Flood Emergency Response Plans)
    • Permanent Flood Protection
      • exterior openings, site
    • Seismic Design
      • bracing, anchoring, seismic gas shutoff valves
    • Roof Loads
      • ponding, snow
  • Ten Qualities Conclusion
      • Fully understand plausible loss scenarios and their relative likelihood.
      • Drive an understanding of hazards most likely to cause loss, and therefore warrant most of our joint efforts.
      • Provide a more effective service resulting in improved risk reduction.
      • Highlight the most significant vulnerabilities to a particular facility.
  • Test Videos
    • Focus on key items:
      • Initial fire growth rate.
      • Time to reach top of the test array and sprinkler activation.
      • Radiant heat exposing target array.
      • Smoke production.
      • Overall test time or time to reach limits of sprinkler protection design – when will the fire department arrive?
    Test Videos
  • ESFR Obstructions
  • Idle Pallets
  • Resources available to you
  • Resources –
    • 173 Years of Research
    • Approvals Guide
    • Resource Catalog
    • Seminars and Training
    • Free Data Sheets!!!
    • FM Global Grant Program
    Resources –
  • Resources –
    • Specializing in the Training of:
    • Industrial Emergency Response Personnel
    • Industrial Fire Brigades (Incipient, Interior Structural, and Advanced Exterior)
    • Hazardous Materials Emergency Response Teams
    • Technical Rescue Teams (Confined Space/ High Angle)
    • Inspection and Maintenance Personnel (Fire Protection Systems)
    • Emergency Response Leaders, Directors, Managers and Trainers
    Resources –
  • 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? The impact of Human Element
  • Does this stuff really work? Two types of Losses
  • Does this stuff really work? Aggregate Loss Example FM Global Windstorm Loss from 2004 Hurricanes Client benefit from natural catastrophe engineering = $430M
  • Does this stuff really work? Aggregate Loss Example FM 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? Aggregate Loss Example FM Global’s gross wind losses in Katrina were $505M
    • By comparing relative loss levels of the two groups, it appears FM Global clients who completed recommendations reduced their overall loss by more than $450M in Katrina alone.
    • Losses at locations with outstanding recommendations were 6.2 times higher per unit of TIV.
    82% 42% Open windstorm recommendations 18% 58% Fully completed windstorm recommendations Share of Gross Loss Share of Total Insurable Value Locations with:
  • Protecting the value business creates… Thank You!