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2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

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Presentation on theme: "2009 Risk Management Conference Risk Management… Protecting Your Bottom Line."— Presentation transcript:

1 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line

2 Discussion Points H1N1-PandemicH1N1-Pandemic Industry Loss TrendsIndustry Loss Trends Copper TheftCopper Theft Equipment TheftEquipment Theft Lightening LossLightening Loss

3 H1N1 Are you really prepared?

4 Novel H1N1 Influenza Novel H1N1 (referred to a swine flu early on) is a new influenza virus that is spreading from person- to-person. The United States government has declared a public health emergency in the U.S. in response to the H1N1 outbreak. CDCs response goals are to: reduce transmission and illness severityreduce transmission and illness severity provide information to help health care providers, public health officials, and the public address the challenges posed by this emergencyprovide information to help health care providers, public health officials, and the public address the challenges posed by this emergency

5 Novel H1N1 Influenza The first cases of human infection with Novel H1N1 influenza virus were detected in April 2009 in San Diego and Imperial County, California and in Guadalupe County, Texas.The first cases of human infection with Novel H1N1 influenza virus were detected in April 2009 in San Diego and Imperial County, California and in Guadalupe County, Texas. The virus has spread rapidly.The virus has spread rapidly. The virus is widespread in the United States at this time and has been detected internationally as well.The virus is widespread in the United States at this time and has been detected internationally as well.

6 Novel H1N1 Influenza Influenza is always serious – each year in the United States, seasonal influenza results, on average, in an estimated 36,000 deaths and more than 200,000 hospitalizations from flu-related causes.Influenza is always serious – each year in the United States, seasonal influenza results, on average, in an estimated 36,000 deaths and more than 200,000 hospitalizations from flu-related causes. Because this is a new virus, most people will not have immunity to it and illness may be more severe and widespread as a result.Because this is a new virus, most people will not have immunity to it and illness may be more severe and widespread as a result.

7 Signs and symptoms Symptoms of Novel H1N1 flu in people are similar to those associated with seasonal flu Fever CoughCough Sore throat Sore throat Runny or stuffy nose Runny or stuffy nose Body achesBody aches HeadacheHeadache Chills Chills Fatigue Fatigue In addition, vomiting (25%) and diarrhea (25%) have been reported. (Higher rate than for seasonal flu) In addition, vomiting (25%) and diarrhea (25%) have been reported. (Higher rate than for seasonal flu)

8 How does Novel H1N1 Influenza spread? This virus is thought to spread the same way seasonal flu spreadsThis virus is thought to spread the same way seasonal flu spreads Primarily through respiratory dropletsPrimarily through respiratory droplets –Coughing –Sneezing –Touching respiratory droplets on yourself, another person, or an object, then touching mucus membranes (e.g., mouth, nose, eyes) without washing hands

9 Can you get Novel H1N1 Influenza from eating pork? No. The Novel H1N1 influenza virus (formerly referred to as swine flu virus) is not spread by food. No. The Novel H1N1 influenza virus (formerly referred to as swine flu virus) is not spread by food. You cannot get Novel H1N1 flu from eating pork or pork products. Eating properly handled and cooked pork products are safe.

10 What can you do to protect yourself from getting sick? There is no proven vaccine right now to protect against this new H1N1 virus. There is no proven vaccine right now to protect against this new H1N1 virus. However, everyday actions can help prevent the spread of germs that cause respiratory illnesses like influenza. However, everyday actions can help prevent the spread of germs that cause respiratory illnesses like influenza.

11 Take these everyday steps to protect your health Wash your hands often withWash your hands often with soap and warm water, especially after you cough especially after you cough or sneeze. Wash for 15 – 20 seconds. Alcohol-based handAlcohol-based hand wipes or gel sanitizers are also effective.

12 Take these everyday steps to protect your health Cover your nose and mouth with a tissue when you cough or sneeze. Throw the tissue in the trash after you use it.Cover your nose and mouth with a tissue when you cough or sneeze. Throw the tissue in the trash after you use it. Avoid touching your eyes, nose or mouth.Avoid touching your eyes, nose or mouth. Germs spread this way. Avoid contact with sick people.Avoid contact with sick people.

13 If you get sick… Stay home if youre sickStay home if youre sick for 7 days after your symptoms begin or until youve been symptom-free for 24 hours, whichever is longer. If you are sick, limit your contactIf you are sick, limit your contact with other people as much as possible.

14 Watch for emergency warning signs Most people should be able to recover at home, but watch for emergency warning signs that mean you should seek immediate medical care. Most people should be able to recover at home, but watch for emergency warning signs that mean you should seek immediate medical care. In adults: Difficulty breathing or shortness of breath Difficulty breathing or shortness of breath Pain or pressure in the chest or abdomen Pain or pressure in the chest or abdomen Sudden dizziness Sudden dizziness Confusion Confusion Severe or persistent vomiting Severe or persistent vomiting Flu-like symptoms improve but then return with Flu-like symptoms improve but then return with fever and worse cough fever and worse cough

15 Emergency warning signs in children If a child gets sick and experiences any of these warning signs, seek emergency medical care. In children: – Fast breathing or trouble breathing – Bluish or gray skin color – Not drinking enough fluids – Severe or persistent vomiting – Not waking up or not interacting – Irritable, the child does not want to be held – Flu-like symptoms improve but then return with fever and worse cough with fever and worse cough

16 Put a plan in place! How can you cope with the temporary loss of 30-50% of your workforce?How can you cope with the temporary loss of 30-50% of your workforce? What positions can telecommute temporarily?What positions can telecommute temporarily? What essential positions must be in the office?What essential positions must be in the office? Limit public contact during periods of heavy outbreaks.Limit public contact during periods of heavy outbreaks.

17 Industry Loss Trends Theft is on the riseTheft is on the rise Auto Accidents with Injuries are increasingAuto Accidents with Injuries are increasing Lightening strikes are more frequent and severeLightening strikes are more frequent and severe Slip and Fall Losses are still driving workers compensation lossesSlip and Fall Losses are still driving workers compensation losses

18 Copper Theft

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22 Introduction Scrap copper prices have consistently been at or above $2/lb for about the last 2 years.Scrap copper prices have consistently been at or above $2/lb for about the last 2 years. As these prices stay at or above even the $1.00 mark the incidence of theft and vandalism will continue to rise.As these prices stay at or above even the $1.00 mark the incidence of theft and vandalism will continue to rise. Economic issues have also played a role in the increase of copper theft.Economic issues have also played a role in the increase of copper theft. Materials stolen are only about 5% of the total repair cost. Its not what they steal but what they destroy.Materials stolen are only about 5% of the total repair cost. Its not what they steal but what they destroy.

23 Site Access Sites should be gated and fenced whenever possible.Sites should be gated and fenced whenever possible. The gate should be at the entrance to the road.The gate should be at the entrance to the road.

24 Lighting Building, storage and tower areas should be dusk to dawn, lit on all sides.Building, storage and tower areas should be dusk to dawn, lit on all sides. Lighting circuits should be monitored. If extinguished, an alarm should sound.Lighting circuits should be monitored. If extinguished, an alarm should sound. Vandalism to lighting typically precedes theft attempts.Vandalism to lighting typically precedes theft attempts.

25 Presence Non-office sites should be visited several times per week.Non-office sites should be visited several times per week. Reel storage should be walked daily.Reel storage should be walked daily.

26 Concealment Out of site, out of mindOut of site, out of mind When possible, all copper should be covered or buried.When possible, all copper should be covered or buried. Any exposed copper should be covered or hidden with paint.Any exposed copper should be covered or hidden with paint.

27 Security Systems All buildings should have monitored systems in place with tabs, motion and other reliable sensors.All buildings should have monitored systems in place with tabs, motion and other reliable sensors. Video cameras should be considered.Video cameras should be considered.

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31 Pre-Vandalism Preparations Take Photos of your SitesTake Photos of your Sites Visit Remote Site RegularlyVisit Remote Site Regularly Security Procedures as previously outlinedSecurity Procedures as previously outlined

32 Post Incident Call Law EnforcementCall Law Enforcement Photograph EverythingPhotograph Everything Contact the Insurance CarrierContact the Insurance Carrier Monitor the site as they frequently come back for moreMonitor the site as they frequently come back for more Review site security proceduresReview site security procedures

33 Equipment Theft

34 Thefts and Vandalism: Tips from the Thieves 1.Thieves fear getting caught when stealing, storing, or moving the equipment. The risk of getting caught when selling the equipment is considered low because owners tend not to record serial numbers, buyers of used equipment tend not to check titles, and even with leads, it is difficult for police to identify equipment and link serial numbers to owners. 2.Sites tend to either be well secured or noteither because the worksite is impossible to secure or due to the attitude of the contractor. There are enough sites with poor security to keep thieves in business for years. It is not necessary to be 100 percent secure, but to be at least better than average, so thieves opt for the less secure sites.

35 Tips from the Thieves 3.There is no point in setting up security procedures that are either too complex or not regularly checked, as thieves will just watch and wait until security starts to decline. 4.Employees of your firm and other local firms are both your best allies and biggest risks. They are the ones who will usually be responsible for the implementation of security and may even know something about a theft. They may even be the ones that let the thieves know about poor security. The key is to give then incentives to help rather than hinder. 5.If you don't record your serial numbers, you can forget about getting your equipment back. Even if recovered, you still have to prove that it is yours. Better still is to find a way of making this information readily available to law enforcement and use signs and decals to let the thief know this has been done.

36 Why are there increases in thefts? –Gun laws--Tougher penalties –Construction equipment=High value –Lighter penalties if caught –Increased security in other business segments (fast food, mini-markets, etc.) –In other words: A soft target

37 Top 10 states for equipment thefts Top 5 = 33% of total (NER, Jan. 2004) 1.Texas 2.North Carolina 3.Florida 4.California 5.Georgia 6.Illinois 7.Tennessee 8.Ohio 9.South Carolina 10.Indiana Theft rates closely follow equipment volume – where there is more equipment there is more theft. Apart from some hotspots the risk of theft is no greater in one state than any other* *NER 2003 Heavy Equipment Theft Statistics report

38 What is stolen? Information taken from police reports –Unpublished Construction equipment –Skid Steers –Compressors –Generators –Pumps –Loaders –Backhoes –And anything else found at a job site

39 What else is stolen (ISO claims information)? –Utility trailers –Lumber –Hand & power tools

40 Construction Site Thefts and Vandalism: Whats the Problem? –According to Insurance Service Office (ISO) there is an increase of 20% per year since 1996 –National Surveys suggest $1 Billon+ in annual losses and associated costs like rental, downtime, management time, and project overrun –Nationally 10%-15% is recovered. CPP=359/922=39%. Autos =62% –Major problem in most areas. Urban, rural and suburban areas. Most thefts from someones elses property not the yard –Security issues may not be a high priority for contractors compared to other exposures (WC, Auto/Fleet, GL) –Insurance Costs for contractors equipment rising due to thefts / VMM –Larger deductibles Risk Sharing –Prevention Effortswill help to control insurance costs, keep project on schedule and within budget –Recovery Effortswill help to control insurance costs and future pemiums

41 Construction Site Thefts and Vandalism: The theft problem Equipment recovery is hindered by: Equipment recovery is hindered by: –Time lapse from theft to theft discovery. An equipment theft on a Friday night might not be discovered until Monday morning. With larger fleets or multi-site operations theft may not be discovered for days, weeks, or months. –Data. If an officer stops someone in suspicious circumstances he cannot identify heavy equipment as stolen, as there is no mandated registration system for off-road equipment. –Problems when theft is discovered: Without registration or title documents the owner may not have a Product Identification Number (PIN) or serial number.Without registration or title documents the owner may not have a Product Identification Number (PIN) or serial number. There is no standard format for the numbering of heavy equipment.There is no standard format for the numbering of heavy equipment. It is difficult for the officer or adjuster to even confirm that the equipment ever existed! No PIN or an incorrect PIN renders the loss report almost useless.It is difficult for the officer or adjuster to even confirm that the equipment ever existed! No PIN or an incorrect PIN renders the loss report almost useless.

42 Not all goes overseas or to Mexico –90% of recovered items are found within 65 miles of theft site

43 Theft Prevention Efforts Personnel –Your workforce can be either a risk or an ally. Well defined management procedures plus employee incentives can make a difference. Include a confidential reward system for information leading to recovery of equipment and/or arrest of the thief. –Effective identification verification and background checks should be performed whenever you hire people. Check references. –Let employees know that theft impacts the bottom line and therefore, has an effect on their compensation. Consider incentives that are tied to cost reductions related to theft and safety risks. This policy should be in writing. –Conduct safety meetings regularly and discuss loss prevention programs.

44 Theft Prevention Efforts Site Security Fencing –Chainlink (i.e. See through) 8+ high with razor wire on top, if allowed, and kept clear of brush and debris. –Limit keys, inspect, and repair fencing frequently Lighting - Fenced areas need to be well lighted –Good quality –Placed at the perimeter of the property directed at the worksite –Power sources must be well protected –Consider motion detectors to activate

45 Theft Prevention Efforts Site Security Barriers around equipment - What you use is determined by what you are protecting –Jersey Barriers –Low walls or dirt berms –Trenches or ditches – 3 to 4 feet deep sloped so most vehicles cant be driven across –Posts – 2 to 4 feet tall/less than 2 ft apart/ sunk 4 to 6 feet underground in concrete

46 Theft Prevention Efforts Site Security Locks –If padlocks are used, they should be high security, i.e., casehardened or laminated steel and preferably with tamper proof guards. –Combination locks lower security due to the potential for the sharing of combinations with thieves. –When possible, ensure that key-in cylinder locks are protected by a guard to prevent removal. –Case hardened chains used with padlocks should be thick enough to resist torch, saws, or bolt cutters. –Consider cable or wire rope instead of chain as it is harder to cut and requires special tools. Consider blind or enclosed locking devices on equipment doors and perimeter gates. –Dont leave open locks on gates etc. during the day.

47 Theft Prevention Efforts Site Security Signage & message boards –No Trespassing / Private Property / Keep Out –Must be posted for law enforcement to issue enforcement to issue citations citations –Helps in court cases & insurance matters insurance matters –Sends a clear message that the site is monitored that the site is monitored

48 Theft Prevention Efforts Site Security –Neighbor watch program –Law enforcement notified –Private security utilized –Reward Bulletins/ Member of local CPP –Anchoring and Immobilizing Equipment –Security Cameras –Company policy discussing thefts, pilfering, and reward system

49 Theft Prevention Techniques Make Your Equipment more difficult to steal –Night switch/ Kill switch –Mechanics & others w/ keys –How many keys/ where are they? –Lockable fuel covers –Steering wheel locks –Remove battery –Consider using gauge protectors/Dash board covers and panel locks on your equipment –Leave parked at 24/7 gas station. Buy all fuel there for reciprocal agreement

50 Theft Prevention Techniques Inventory Control Die Stamps –Die stamp your ID number underneath the serial number –Then add one or two more in hidden areas –Duplicate the units PIN / serial number in at least two additional places – one obvious and one hidden

51 Theft Prevention Techniques Inventory Control –Clearly ID all equipment w/ non-removable weather proof decals –Customize the unit with unique paint colors, such as painting the roof a distinctive color or painting the unit number in large characters - if it is more likely to be noticed, it is less likely to be stolen –Record any and all numbers on the unit, including engine and chassis numbers, along with that numbers location –Record year, manufacturer, model number and PIN from actual plates/decals –When describing unit, use actual manufacturer model names; avoid using generic terms such as tractor or dozer.

52 Theft Prevention Techniques Inventory Control –Keep records of equipment location assignments, the dates of delivery, and anticipated return. –Make note of any decals, special paint markings, company ID codes, etc., that you have added to the unit. –Use decals and signs to tell the thief that all of this has been done. –This information can be recorded with a national database such as the National Equipment Register.

53 Theft Prevention Techniques Inventory Control Key Control –Make it a company policy that keys be removed from equipment when not in use or it is being stored. –Make a note of who has access to, or is assigned keys to equipment or a worksite. –Consider a Key Sign-Out Log to ensure the whereabouts of all keys are known. –Keep all keys secured in a safe or lockable area after hours or when not being used.

54 Theft Prevention Efforts Smaller Equipment and Tools Basics –100% perimeter fencing w/ barbed/ razor wire if allowed –Haul-away (large metal storage bins w/ lock guard & #5 Master lock, or better) –Stainless steel is much harder to cut/burn –Do not leave lock open during day –Park heavy equipment in front of bin doors –Do not store materials around fences –Paint all tools & equipment in your unique company colors –Use K rail (Jersey barrier) to block job entrances & bins –Remove model # from bottom of lock

55 Theft Prevention Techniques Inventory Control Identify materials and smaller tools –Color code Blue Dot Services, Las Vegas, NV (painted all tools hot pink)Blue Dot Services, Las Vegas, NV (painted all tools hot pink) –Mark materials –Tool Watch (Englewood, CO) A tool management information system that lets you view lists of tools and equipment at various locations. Gives you an active approach at managing your tools. Allows accurate, up-to-date information about your tool stock

56 Theft Prevention Techniques In Transit –Trailers and towable equipment should use quality trailer hitch or king pin locks –Maintain minimum fuel levels on equipment being transported. This has both security and safety advantages –Secure and lock equipment to the transport platform

57 Theft Prevention Techniques Equipment Not In Use –Return all equipment to its proper place or a secure area upon completion of a task or at the end of the day. –Dont leave equipment on the side of roads or in public places overnight or particularly on weekends. –Discourage subcontractors from leaving or storing unused equipment on your site –Arrange/store equipment not in use in such a manner that a missing units are obvious. –Position larger pieces of equipment in a circular pattern with generators, compressors, and other small items inside. –A supervisor or manager should regularly check on equipment that must be left at a worksite for an extended period. –Unload units and secure them to the trailers hitch if equipment must be left unattended.

58 Location, Tacking and Alarm Systems GPS / LoJack / Tattletale –Equipment dealers & renters installing on more expensive pieces –Can be removed. Inside job? –Easy tracking by law enforcement Commercial vehicles and equipment of every type are at risk for theft, including heavy construction equipment, tractor trailers, generators, trucks, vans, and rental vehicles. When your equipment or vehicles are stolen, it stops your business and you lose time and money. Commercial vehicles and equipment of every type are at risk for theft, including heavy construction equipment, tractor trailers, generators, trucks, vans, and rental vehicles. When your equipment or vehicles are stolen, it stops your business and you lose time and money.

59 Illumination –Lots of lights during off hours if possible –Motion detectors connected to outside lights Thieves, trespassers, and vandals do not want to be seen

60 Good Neighbor Program –Residential or commercial areas –Ask if interested in helping to fight crime in the area (perfect job for that retiree living in the house across the street) –Pay them a small fee per month or a discount on your services to keep a watch out for bad guys –Rewards –Vandalism letter to homeowners in area

61 Local Law Enforcement –Know who to call for what you are reporting-hopefully, you are a member of a CPP (Crime Prevention Program). They do it all for you –A simple 911 call really will not provoke much of a response. CONTRACTOR: someone stole my forklift –POLICE: very sorry however we have a burglary in progress, a murder and 2 vehicle accidents to respond to. Whats your name/number, well call if we find it –Cultivate a good relationship with the local police

62 Rewards –Have it clearly posted on site –Policy manual. Reward (including employees) for those who turn in a co-worker for stealing/pilferage/vandalism –Make it clear in the policy manual that pilfering/ theft is not tolerated and they will be handed over to the local authorities if caught stealing

63 Surveillance Cameras Surveillance Cameras –Use real and/or dummy cameras –Clearly posted Youre on Camera

64 Summary –Theft policy –Pre job site security planning –Look at state of the art security devices –Join a Crime Prevention Program in your area –Get local law enforcement involved –Look at key control, perimeter fencing, lighting, motion devices, surveillance cameras, etc. –Inventory and photograph all equipment and update list when new equipment is added or at least annually –Report all missing tools/equipment immediately to police and, if applicable, your local Crime Prevention Program

65 Lightening Losses

66 Lightning Protection

67 Facts about Lightning A strike can average 100 million volts of electricityA strike can average 100 million volts of electricity Current of up to 100,000 amperesCurrent of up to 100,000 amperes Can generate 54,000 o FCan generate 54,000 o F Lightning strikes somewhere on the Earth every secondLightning strikes somewhere on the Earth every second Kills 100 US residents per yearKills 100 US residents per year

68 Lightning Doesnt Go Straight Down

69 What Does This Mean? Lightning can strike ground up to ten miles from a storm (Lightning out of the blue)Lightning can strike ground up to ten miles from a storm (Lightning out of the blue) There is an average of 2-3 miles between strikesThere is an average of 2-3 miles between strikes So how can we tell how far away lightning has struck?

70 Use The Five Second Rule Light travels at about 186,291 miles/secondLight travels at about 186,291 miles/second Sound travels at only 1,088 feet/secondSound travels at only 1,088 feet/second You will see the flash of lightning almost immediatelyYou will see the flash of lightning almost immediately 5280/1088= 4.95280/1088= 4.9 About 5 seconds for sound to travel 1 mileAbout 5 seconds for sound to travel 1 mile

71 Stepped Leader

72 Streamers

73 Four Main Features of Lightning Protection 1) Air terminal1) Air terminal 2) Conductors2) Conductors 3) Ground termination3) Ground termination 4) Surge protection4) Surge protection

74 Surge Protection is a Must

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76 Thank You Paul Samson Great American Insurance Company 49 East Fourth Street, Suite 700 Fisherville, KY 40023 (502) 477-1988 psamson@gaic.com


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