1. Emerging Risks that keep you Awake at Night Trevor W Case Manager, Insurance & Risk Management

2. Losses  There is a potential for freezer spoilage claims and the resulting losses within a University environment can be extremely high  These losses can range from the spoilage of substances, loss of access to research material, which will need to be replaced over a period of time, and the potentially devastating loss of irreplaceable research material.  These losses can cause significant delays in the completion of contract research and postgraduate research projects

3. Comparison of Insurance coverage in the market Standard Industry Wording - Spoilage of Property EXTENSIONS OF COVER 3.3.1 Spoilage of Property This Policy extends to include Damage to property caused by or arising from changes in temperature and/or humidity in a temperature and/or humidity controlled environment where such changes arise out of: 3.3.1.1 mechanical, hydraulic, electrical or electronic breakdown of the temperature and/or humidity controlling equipment; The cover referred to in 3.3.1.2 excludes loss or damage occasioned by: 3.3.1.3 wilful act or neglect of the Insured. 3.3.1.4 a deliberate act of the electricity supply undertaking unless performed for the sole purpose of safeguarding life or to protect any part of the supply undertaking’s system. 3.3.1.5 a scheme of rationing except where made necessary solely by Damage to the supply undertaking’s generating or supply equipment. It is a condition of this extension that: 3.3.1.6 commercial temperature controlled refrigeration units are in place where the tolerance of the stored material is less than or equal to 2oC. 3.3.1.7 temperature and/or humidity controlling equipment is kept under supervision by suitably trained personnel and/or equipped with an automatic alarm system to call personnel to the plant should there be a rise or fall in temperature temperature or change in humidity. Unimutual Limited Spoilage by Accidental Means Damage to protected property stored at set temperatures due to variation of temperature occurring from any unforeseen and unintended event. Caused by or arising from any risk or peril including:- (a) Fire and Perils; (b) Accidental Damage; (c) Earthquake; (d) Flood; (e) Burglary or Theft; (f) Theft in Open Air; (g) Machinery Breakdown

4. GU Losses Incurred - Temperature Controlled Environments November 2009 to November 2013 *One Additional Outstanding Claim to be finalised $233,792 Uninsured Losses or Incident Report Lodged November 2001 to November 2009 *** Estimated Loss $$ is low as no value was given at time of reporting incident Most losses can be placed into specific categories such as extended power failures, mechanical breakdown, actions or negligence of people or the failure of maintenance or monitoring systems. Griffith History  Power Outage 8  Unplugged Cord 5  Unknown Failure 1  Loss of Research – not TCE No of ClaimsActual LossExcess PaidPaid by Insurer 7$579,920$81,506$498,413 No of Incident ReportsEstimated Loss 8$91,796 ****

5. Losses Incurred by Insurer

6. New Insurance Coverage effective 1 st November 2013 New Spoilage limit A) $500,000– alarmed TCE B) $250,000 - unalarmed TCE Aggregate limit $500,000 (total amount of all claims in any one year period) The aggregate limit is subject to one automatic free reinstatement. Excess payable on each claim :- Alarmed 30% of loss min $5,000 No alarm 50% of the loss min $5,000 Basis of Settlement On Research and/or Development Projects, the costs and expenses incurred in re-establishing to the same stage in development as existing at the date of Damage including the costs and expenses in the replacement of all materials. (Previously settlement was based on costs incurred from the start until the date of loss)

7. Impediments Finding location of fridges, freezers etc (40 Nathan & 100 Gold Coast according to Asset Register) Discovering ownership & users Valuing contents (some items unable to be replaced as no longer available) Internal charges prohibitive – monitoring, implementing Research staff believe Uni responsible No consistent basis for valuing samples Researchers expectations An audit undertaken in 2013 by 2 universities found the following limitation with valuing contents of fridges, freezers, cold rooms & incubators etc.

8. Proposed Audit of Contents of all TCE’s Custodian School/Element Campus Description Building/Room No Asset No CategoryItem:HoursCost / hrTotal ($)Notes ITEMS PURCHASED Reagents and consumables (no GST) 0cost of replacing items Chemicals etc 0 ITEMS MADE Replace products, plasmas, organism 0 ITEMS COLLECTED Shipping / Import fees 0 Lab equipment costs 0 Hiring/ leasing /usage fees 0 Cost to extend a grant 0 Animal costs 0 Housing costs 0 Preparation of samples 0cost of time spent in preparing samples Local transport costs 0 Field costs 0 Staff cost to collect samples 0 Staff cost to process samples 0 Analysis of replacment samples 0 Outsourced costs to replace lost samples 0 Storage fees 0

9. Risk Risk Recommendations Valuable Research Samples = Alarm. Don’t place valuable samples in unalarmed freezers! Label all TCEs (effective & minimal cost) Why put all your Eggs in One Basket? Separate valuables into 2 freezers Spare Emergency Fridges and clear emergency procedures Its not only the financial cost but the loss of research and the time it takes to recreate the results = reputation risk Some recommendations cost $$$$$ but outweigh the time & cost following a loss Test the Alarms on a regular basis

10. Other Success Stories University of Melbourne (Saveris monitoring system) Where a monitoring system has been installed: No loss of material due to freezer failure Reduced / prevented claims of $500,000 (in 6 months) Compares to $600,000 in potential claims in non-alarmed areas Ethernet Wireless

11. Questions