FPF190: Fire Protection Fundamentals FPF190 Fire Protection Fundamentals 1 Insurance Loss Prevention Inspector

Insurance Careers  Important Courses in Program  Companies 2 FPF190: Fire Protection Fundamentals

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Risk Management / Insurance Careers: CONCEPTS  Concepts for Risk Management/Insurance  Duties of this type of specialist  Purpose of Adjustors  Regulating Organizations  CIP (Chartered Insurance Professional)  CRM (Canadian Risk Manager) FPF190: Fire Protection Fundamentals 4

Risk Management / Insurance Careers: Companies  Intact Insurancehttp:// specialty-insurancehttp:// specialty-insurance  FM Globalhttps://  Northbridge (formally Lombard)  Includes Federated Insurance and Zenith   Professional Loss Controlhttp://  RSA Grouphttp://  SCM Risk Management FPF190: Fire Protection Fundamentals 5

Terms  Broker Broker  Underwriter  Site evaluations  Risk Management  Loss Sustained  Business Interruption  Certificate of Insurance  Claim  Equipment Breakdown Coverage  General Liability Coverage  Insured Perils  Insured Property 6

FPF190: Fire Protection Fundamentals Insurance Broker  insurance agent sells, solicits, or negotiate insurance for compensation.  Three largest insurance brokers in the world, by revenue, are  Marsh & McLennan  Aon, and  Willis Group Holdings. 7

FPF190: Fire Protection Fundamentals Insurance Underwriter 1  Evaluate the risk and exposures of potential clients  Decide how much coverage the client should receive  How much they should pay for it, or  Whether even to accept the risk and insure them.  Underwriting involves measuring risk exposure and  Determining the premium that needs to be charged to insure that risk. The function of the underwriter is to protect the company's book of business from risks  that they feel will make a loss and  issue insurance policies at a premium that is commensurate with the exposure presented by a risk 8

FPF190: Fire Protection Fundamentals Insurance Underwriter 2  Company has underwriting guidelines to help the underwriter determine whether or not the company should accept the risk.  The information used to evaluate the risk of an applicant for insurance will depend on the type of coverage involved.  Factors used to classify risks should be  Objective,  Clearly related to the likely cost of providing coverage  Practical to administer,  Consistent with applicable law, and  Designed to protect long-term viability of insurance program. 9

FPF190: Fire Protection Fundamentals Insurance Underwriter 3  May decline the risk  May provide a quotation in which the premiums have been loaded or in which various exclusions have been stipulated, which restrict the circumstances under which a claim would be paid  Some insurance companies rely on agents to underwrite for them 10

FPF190: Fire Protection Fundamentals Site Evaluations  Risk evaluations will identify and analyze conditions that could result in property damage and/or business interruption. 11

FPF190: Fire Protection Fundamentals Risk Management  Services designed to identify and address property risks worldwide and support broader, enterprise risk management objectives. 12

FPF190: Fire Protection Fundamentals Actual Loss Sustained  The actual amount of monetary loss caused by a suspension of the customer’s business and subsequent loss of income resulting from direct physical damage to the customer’s property; or, caused by additional expenses that would not have been incurred except for the physical damage to the property. 13

FPF190: Fire Protection Fundamentals Business Interruption  Various types of insurance against business expenses and loss of income resulting from a fire or other insured peril. 14

FPF190: Fire Protection Fundamentals Certificate of Insurance  A written document stating that insurance is in effect. It includes a general statement of the policy’s coverage. 15

FPF190: Fire Protection Fundamentals Claim  A request by the customer to be compensated by their insurance company for losses covered by an insurance policy. 16

FPF190: Fire Protection Fundamentals Equipment Breakdown Coverage  (Boiler and Machinery): This coverage protects an organization against losses that result from a breakdown of heating, refrigeration, air conditioning equipment, pressure vessels, boilers, production machinery, electrical apparatus and/or electronic equipment. 17

FPF190: Fire Protection Fundamentals General Liability Coverage  Insurance designed to protect business owners and operators from a variety of liability exposures. These risks may include bodily injury or property damage sustained by customers of the business, due to the business owner's premises, operations or products. 18

FPF190: Fire Protection Fundamentals Insured Perils  Specific sources of loss (such as fire, liability or theft) covered by an insurance policy. 19

FPF190: Fire Protection Fundamentals Insured Property  The insured property is the property covered by an insurance policy. It is typically covered against damage caused by fire, smoke, wind, hail, weight of ice and snow, lightning, theft and more.  Property insurance also provides liability coverage in case someone other than the property owner or renter is injured while on the property, and takes legal action.  Insured property is typically not covered for water damage  Policies also may not cover mold, earthquakes, nuclear events or acts of war, such as terrorism and insurrections. 20

FPF190: Fire Protection Fundamentals Loss Prevention Inspector Activities 1  Risk inspections on commercial risks.  Occupancies  Apartments,  Warehouses  Manufacturing  etc… 21

FPF190: Fire Protection Fundamentals Loss Prevention Inspector Activities 2  Building valuations  Reports  products supplements  sprinkler supplements  restaurant supplements  equipment breakdown  Etc… 22

FPF190: Fire Protection Fundamentals Loss Prevention Inspector Activities 3  Presentations for industry professional  Brokers  Underwriters 23

FPF190: Fire Protection Fundamentals Inspection Process 1  Areas of focus during loss prevention inspection  Fire,  Crime  Liability (both premises and products)  Water damage is now a larger focus. 24

FPF190: Fire Protection Fundamentals Inspection Process 2  Building details, including measurement of square footage, confirm the underwriting information and complete a building valuation.  Construction  Square Footage  Occupancy and Operations  Fire Protection  Crime Exposures  Water Damages  The Environment 25

FPF190: Fire Protection Fundamentals Inspection Process 2  Understanding operations and hazards present  Business Interruption  Boilers  Flammable processes 26

FPF190: Fire Protection Fundamentals Sources of Information  Intact Insurance Website  FM Global Website  Wikipedia 27

FPF190: Fire Protection Fundamentals Wrap-up  Summary  Questions 28