Insurance
Property
Risk Engineering
Prevention Views
SEPTEMBER 2015
In This Issue:
Welcome Letter
Keeping Your Safety in Shape with Loss
Prevention Training
Page 2
A Swath of Hail
Page 3
How to Mitigate Water Damage
Page 6
How to Prevent Water Ingress Damage
Page 7
Loss Prevention Measures
for Fire Sprinklers
Page 9
How to Increase Chemical Plant Safety
Page 10
Talent Spotlight: Nancy Pennington
Page 13
NFPA updates (access link here)
Dear Reader,
Welcome to the latest issue of Prevention Views! My
property risk engineering colleagues amaze me with the loss
prevention knowledge and helpful guidance they offer in
each issue. This issue is no exception.
This Prevention Views issue also has the distinction of being
our first newsletter as XL Catlin, after bringing together the
operations of XL Group and the Catlin Group. On May 1, XL
Group officially acquired Catlin. For the past several months,
we’ve worked hard to combine our operations across all
business lines and support functions. As a united operation,
we’ve enhanced our ability and increased our capacity to
serve clients, an area where our property risk engineering
team has always excelled.
As you can tell, I am one of our Property Risk Engineering
team’s biggest fans. As President of XL Catlin’s North
America Property insurance business and head of its global
risk engineering division, I consider myself very lucky to work
with such a talented and knowledgeable risk engineering
group. Like my fellow property underwriters here at XL
Catlin, I also consider myself very fortunate to have this
team’s expertise helping me analyze and evaluate property
risk to provide our clients with strong insurance coverage,
along with sound advice and a variety of loss prevention
solutions to protect our clients’ properties.
How our underwriters, risk engineers and claims teams
work together is what distinguishes us in the market. That’s
what drew me here. In 2011, I joined XL Catlin from Zurich
North America to assume the role as Senior Vice President
and Eastern Regional Executive where I was responsible
for managing our property underwriting, risk engineering
activities and broker relationships throughout our Eastern
Zone, from Miami, Florida up through Maine. Later on, I
served as XL Catlin’s Chief Underwriting Officer for North
America Property before stepping into my current position
more recently.
• Prevention Views • September 2015 • 2
This year, in addition to being part of a newly combine
company, XL Catlin’s global risk engineering team also
marked a very special milestone – its 125th anniversary of risk
engineering. Risk engineering has evolved considerably over
the last century and this team has been a major influencer.
What was once a discipline focused on fire protection has
evolved into a broad-focused and collaborative approach
focused on finding ways to protect property against damage
from a wide variety of risks and natural forces including high
winds, excessive water and earthquakes.
I’m proud to say that XL Catlin’s Property business has
grown globally and impressively over the last several years.
Our property risk engineers have played a big part of this
success and will continue to play a key role in making sure
our added capacity, extended global reach and more product
expertise serves our property clients well. We’ll keep you
informed on XL Catlin’s news and developments.
Until then, enjoy this issue of Prevention Views! I know I will.
Over the last century and a quarter, this team has evolved
–different names, different companies, and different
leadership. What hasn’t changed, however, is this team’s
dedication to helping commercial and industrial businesses
reinforce their property protection efforts.
Best Regards,
Michele Sansone
President, North America Property;
Head of XL Catlin’s Property
Risk Engineering
Keep Your Safety in Shape
with Loss Prevention Training
We offer on-site training seminars at
Eastern Kentucky University (EKU) in
Richmond, KY twice a year, including
training on:
• Automatic Sprinkler Systems
• Fire Alarm Systems
• Water Supplies and Fire Pumps
• Warehouse Protection
• Special Extinguishing Systems
• Flammable & Combustible Liquids
Hazards
Specific topics dealing with
understanding NFPA25: Standard
for Inspection of Water-Based Fire
Protection System are available. Also,
requests for customized courses or
specific codes are welcome.
US Training Dates:
Our Clients Say it Best
October 13 – 16, 2015
“I recently attended an XL GAPS’
Basic Industrial Property Loss
Prevention Training Course held at the
fire lab at Eastern Kentucky University
(EKU). As a property risk manager
of a major global shoe manufacturer
and a former insurance broker, I found
the training to be thorough and one
of the best structured programs in
the industry. The hands-on practical
and full fire pump flow testing
exercises were just a few of the very
helpful sessions. Overall, I took away
a solid appreciation of the value
added services from the sound loss
prevention engineering we are getting
from XL GAPS.”
March 14-16, 2016
October 10-13, 2016
Send an email to
[email protected]
or [email protected]
for more details.
Visit http://xlgaps.com/store to learn
more about customized training for
your facility, access online training,
and view our live webinar training
sessions.
Lykke Henningsen,
Insurance Manager ECCO Sko A/S, Denmark • Prevention Views • September 2015 • 3
A Swath of Hail: What causes it
and tips for being prepared
Introduction
Although hail accounts for a very high
proportion of the natural peril losses in some
countries and also some of the most costly
insured loss totals from individual natural
events, it is a peril that rarely receives much
attention. With the frequency and cost of
property losses from hail on the upswing, this
could be about to change.
While hail is frequent in some regions of
the world, the area impacted is usually very
localized. This is why severe hail at any one
point on the ground is a relatively infrequent
occurrence. And while many hailstorms pass
without inflicting any significant damage at
all, others cause property losses well into the
billions of dollars.
A recent fall of soft marble-sized hail – up to
300 mm (12 in.) in depth – was blamed for
huge property losses, including the collapse
of multiple large warehouse buildings in outer
Sydney, Australia. Investigations into these
losses and the implications the damage
caused are ongoing.
What is Hail and What Causes It?
A frozen agglomerate with a diameter of
more than 5 mm (0.2 in.) is classified as a
hailstone. The mechanisms within a storm
conducive for hail are complex and may vary
depending on location in the world. However,
typically the formation of hail requires the
presence of strong updrafts. Fine droplets
of water are carried in these updrafts to
altitudes where temperatures are well below
freezing point. These super-cooled droplets
freeze on contact with particulates and
continue to grow in size on contact with other
super-cooled droplets. Eventually, the size
and weight of a hailstone cause it to fall to
the ground or be elevated again by another
updraft. The cyclic process within the
atmosphere is the reason for both the onionlike layers of opaque and clear ice within a
hailstone, and also their irregular shapes.
Logically stronger updrafts usually result in
larger hailstones and longer-lived hailstorms
also produce larger hailstones.
The damaging aspects of hail include the
hailstone sizes, shape, velocity on impact and
the number of hailstones per unit area, and
hail risk is a combination of these factors plus
the frequency of hail over a given area.
Variability of Hail
Hail tends to fall within a localized strip of
land. This is referred to as a hail swath. This
swath may impact as little as one industrial
site or may extend across a strip of land as
large as 150 km long and 15 km wide. Hail can
fall for just a few minutes or for as long as 90
minutes. The covering of hail is often light,
but depths of 450 mm (18 in.) of hailstones on
the ground have also been recorded.
Hailstone size generally varies up to about
115 mm (4.5 in.) in diameter or occasionally
even larger. However, the most common
hailstone size is equivalent to that of a marble
or a golf ball. Larger hailstones can reach
speeds of over 150 km/h on impact. The
velocity on impact varies not only according
to the size of the hailstone and its shape
and orientation (aerodynamics), but also
as a result of the presence of strong winds
and, in particular, downdrafts that might be
present. The Institute for Business and Home
Safety (IBHS) is conducting research into
the hardness variability of hail, postulating
that harder hail is more damaging. Readings
for compressive stress have ranged from
62 kPa (9psi), which is soft ice that is unlikely
to cause impact damage, to as much as
4300 kPa (628psi).
Hail-Exposed Areas of the World
According to Munich Re’s Natural Hazards
Map – NATHAN – areas with an expected
higher frequency and intensity of hailstorms
include:
• Southern and Central Europe
• The Great Plains region of USA, extending
in some areas to the East Coast much of
Mexico and some parts of Central America
impact speed
150km/hr
x
• Prevention Views • September 2015 • 4
• Eastern parts of Brazil and Argentina
• Mountainous regions of Peru
• Much of North Asia including large parts
of China, South Korea and Japan
• Eastern Australia
• South Eastern and Central Africa
What Damage Can Hail Cause?
With regard to commercial and industrial properties, the
following types of damage are normally caused by severe
hailstorms:
• Roofing materials: Corrugated fibrous cement or asbestos
sheeting can be penetrated. Clay, cement or slate tiles and
wood shingles can be cracked or penetrated. Metal roofs
can be dented by hail and these dents can shorten the life
of the roof. Roof shingles made with polymer-modified
(SBS) asphalt have better resistance to hail damage than
shingles made from oxidized asphalt. Built up gravel
roofing is typically damaged only by very severe hail.
About 3,000
hailstorms occur
annually in the US,
typically causing
billions of dollars
worth of damage
Where the materials are cracked or penetrated,
subsequent internal water damage to contents and stock,
fixtures and interior walls, ceiling tiles and floor coverings.
The largest losses here have involved corrugate fibrous
cement or asbestos roof punctured in many places by hail.
Where asbestos is involved, there are the additional costs
of cleanup over and above other materials.
• Sidings, windows, flashing signs and ornamentation:
These can be dented or penetrated since the trajectory
of hailstones can be from the side. Exterior Insulation
Finishing Systems (EIFS) can be also be damaged by hail,
as can cement rendered foam plastic ornamentation.
• Skylights: Non-impact-resistant plastic or glass skylights
can be penetrated, thus also potentially leading to water
damage inside the building.
• Roof-mounted equipment and ventilation equipment: In
particular, aluminum fins on air conditioning equipment
condenser coils can be dented, necessitating repair or
replacement.
• Vehicles: Very commonly, panels are dented and windows
and windscreens are smashed by hail.
• Crops, trees and gardens: Any vegetation can be
destroyed by hail.
• Structural collapse: Though rare, roof collapse due to
the total live weight of accumulated hail and rain has
been reported. Large relatively flat roofs, saw-tooth
roofs, canopies and roofs with valleys tend to be more
susceptible to this type of loss than well sloped roofs with
single apexes. While not likely to cause impact damage,
small and soft hailstones can result in this type of loss if
they fall in sufficient depths in any one area.
• Demand Surge: As with other catastrophes, demand
surge that puts a strain on the availability of materials and
skilled labor occurs in the wake of very severe hail events.
With regard to structural collapse, the hailstorm of April 25,
2015 in the Huntingwood area of Sydney, Australia resulted
in damage to a number of very large steel-frame warehouses
reportedly due to the weight of accumulated hail. These
were buildings with a size of around 20,000 m² (215,000 ft²)
and with low roof pitches. Hail blanketed the ground like
snow that was inches deep. If verified, there are obvious
similarities to snow-loaded roof collapses experienced in
some regions of the world.
It has been difficult to find other occurrences similar to
the above. However, there was at least one case in the
USA on June 3, 1959 at Selden, Sheridan County Kansas,
where a sustained fall of hailstones for approximately 85
minutes caused an accumulation of mostly pea or marblesized soft hailstones to a depth of 450 mm (18 in.). Almost
every building in this rural area was damaged. Reportedly,
the greater losses resulted from the tremendous weight
of accumulated hail on flat-roofed or nearly flat-roofed
buildings, causing them to collapse. Hail accumulation on
a truck scale during this storm measured about 300 kg/ m²
(60 lb/ft²).
Hail Loss Statistics
About 3,000 hailstorms occur annually in the United States,
typically causing billions of dollars worth of damage in each
year. A report issued by Verisk Insurance Solutions in August
2014 indicated that over the 14 years from 2000 to 2013 U.S.
• Prevention Views • September 2015 • 5
insurers paid almost 9 million claims for hail losses, totaling
more than $ 54 billion. The trend was reported as growing.
• FM 4470: “Susceptibility to Hail Damage, Test Standard for
Class 1 Roof Covers”
The Insurance Council of Australia has indicated that 10 out
of the largest 25 insured property losses in Australia were
due to hail damage and that this peril accounts for about 29%
of the total normalized insured losses from natural perils for
the period 1967 to 2010.
• UL 2218: “Impact Resistance of Prepared Roof Coverings”
Some noteworthy large and devastating hail events include:
• May 5, 1995 – Dallas and Fort Worth, Texas – around $2
billion
• April 14, 1999 – Sydney, Australia – around $3 billion
(normalized)
• April 10, 2001 – St Louis, Missouri – $2 billion plus
• July 19, 2002 – Henan Province, People’s Republic of China
– 25 fatalities
• July 28, 2013 - Southern Germany – €3.6 billion
• Nov 27, 2014 – Brisbane, Australia – just under $1 billion
Hail Impact Testing Standards
and Building Codes
Hail is rarely mentioned in international building codes.
However NFPA 5000 “Building Construction and Safety
Code” includes the following classification:
Moderate Hail Areas: Areas subject to a minimum of one hail
day with 38 mm (1.5 in.) hail or greater in a 20-year period.
Severe Hail Areas: Areas subject to a minimum of one hail
day with 50 mm (2 in.) hail or greater in a 20-year period
It also indicates what class of building material (impact
resistance) is required for each area, and the test standards
as mentioned below.
A number of testing standards are in place in the USA and
use steel or ice balls which are dropped or propelled into the
samples.
• ASTM D3746: “Standard Test Method for Impact
Resistance of Bituminous Roofing Systems”
• FM 4473: “Specification Test Protocol for Impact
Resistance Testing of Rigid Roofing Materials by Impacting
with Freezer Ice Balls”
Ice balls generally are harder and denser than hailstones
and therefore an ice ball should simulate the worst case
hailstone. Steel balls are also obviously harder than all hail.
However, the various testing methods do not necessarily
account for some variables, such as aging factors of
the building materials or reduced temperatures during
hailstorms.
In Europe, impact resistance testing is mainly confined to
roofing membranes and solar panels.
Hail Research
Notably, the IBHS has been researching the hardness
variability of hail and comparing actual hail with the steel balls
or ice balls used in impact resistance tests. Results are being
used to guide ongoing evaluation of current impact testing
standards mentioned above, but at this point they appear to
be sufficiently conservative. For a given diameter, spherical
laboratory stones would generally possess greater kinetic
energy on impact than a natural hailstone of equal diameter,
because of the larger mass associated with the spherical
shape as compared to disc or other shapes.
Loss Control Recommendations
• Select hail-resistant building materials, including roofing,
sidings, windows, vents, skylights and EIFS; otherwise
provide hail guard protection. Ensure that an appropriate
testing standard such as UL 2218 or FM4473 has been
employed.
• The use of a thin, single layer of underlayment improves
the hail resistance of the shingle roof
• Using thicker-gauge metal roofing will give it a higher
impact resistance.
• Avoid storing high value equipment or materials
susceptible to water damage in buildings with hailpenetrable roofs or skylights.
• Select hail-resistant skylights and windows or provide
mesh hail guarding.
• Protect roof mounted equipment with mesh hail guards, or
otherwise enclose them. The fin coils of air conditioning
equipment are particularly susceptible to hail damage.
Mesh guards are available to protect these. Louvered
enclosures are another option. Antennas, vents, cooling
towers, heating units, company signs and other roofmounted equipment should be considered for hail
protection.
• Prevention Views • September 2015 • 6
• Solar panels top surface coatings affect hail resistance and
hail-resistant versions should be chosen for hail-exposed
areas.
• Design roof drainage systems so that hail blockages
cannot result in ponding and roof collapse, or overflow
of gutters and subsequent internal water damage. For
existing roof drainage system hail mesh guards or slats
can be used to prevent drainage blockages. Wood slats
designed to hold hail above the drains can be used over
box gutters that run in valleys between roof apexes.
• Consider in structural design the additional load from
accumulated hail on large flat or gently sloping roofs.
Provide structural reinforcement as needed. (Refer to
provisions for snow loading in ASCE 7)
• Include hail in emergency procedures: Weather radar
can provide some pre-warning of severe hail. Include
measures, such as protecting vehicles or valuable easily
damaged external storage prior to the storm, if possible,
and conduct a roof inspection immediately after any
storm.
• Maintain trees near buildings; remove overhanging
branches.
• Protect large areas of stored vehicles and aircraft with hail
netting or by using hail mats.
• Consider damage possible to external storage and make
arrangements for cover if necessary.
• Site selection to limit hail damage is possible but generally
not practical. Also, roof pitch can increase hail resistance
and this may be considered during design phases.
• Prior to purchase, inspect roofs for pre-existing hail
damage which may not be immediately obvious.
Conclusions
The peril of hail causes billions of dollars in damage to
commercial and industrial properties annually, especially in
areas subject to moderate and severe hail exposure. Hail may
be infrequent in any one location and difficult to predict, but
the consequences to an individual commercial or industrial
facility can be severe and warrant protection as suggested
in this article. In areas of the world such as Eastern Australia,
where snow loads are not incorporated into building designs,
the collapse of large flat roofs may be a hidden risk of
hailstorms.
Terry Behan, Regional Engineering Leader
[email protected] +61 282 701704
References
Weather Notes: Sever Hail, Selden, Kansas, June 3, A. D. Robb, US. Weather Bureau, Topeka, Kansas,
Manuscript received August 26, 1959.
The Scales of Hail, Stanley A Changnon, Jr, Journal of Applied Meteorology, April 22, 1977
Hail Damage Threshold Sizes for Common Roofing Materials, Timothy P. Marshall, Richard F. Herzog,
Scott J. Morrison, and Steven R. Smith, Haag Engineering Co. Dallas, Texas
Simulated Hail Damage and Impact Resistance Test Procedures for Roof Coverings and Membranes,
Vickie Crenshaw and Jim D. Koontz P .E. Oct. 27, 2000,
The impact of Climate Change on Hailstorms in Southeastern Australia, Stephanie Niall and Kevin Walsh,
International Journal of Climatology, 20 October 2005
Property Hail Claims in the United States: 2000–2013, Steve Lekas, Mike Gannon, Sana Moghul, Verisk
Insurance Solutions
2013 IBHS Characteristics of Severe Hail Field Research Summary, Ian M. Giammanco, PhD, Tanya M.
Brown, PhD, Insurance Institute for Business & Home Safety, February 25, 2014
FM Data Sheet 1-34 Hail Damage October 2014
NFPA 5000 “Building Construction and Safety Code” 2012 Edition
How to Mitigate Water Damage
Water. It’s a vital firefighting weapon.
It’s also a critical domestic and industrial
utility. For easy access, every facility has
piped water for any one of these uses.
However, even though it’s an important
resource, water that escapes from a piping
system can be very destructive and result
in tremendous property damage and costly
disruption in operations.
Fortunately, with a little attention, most water damage
losses can be prevented. And losses that do occur can be
significantly minimized when the right precautions are taken.
The basic measures to prevent these losses are Design and
Engineering, Prevention and Preventative Maintenance, and
Pre and Post Emergency Planning. These loss prevention
measures not only apply to water leakage, they can also be
applied to many kinds of liquids found at facilities, as well as
help to prevent water damage from floods.
Design and Engineering
When designing and building a new facility:
• Domestic water lines should not be installed above critical
services. For example, in a hospital, a water line for an
icemaker should not be located on the floor directly above
an MRI machine.
• Stock materials, supplies, products on pallets or store on
skids.
• Prevention Views • September 2015 • 7
• Locate important processes or storage above sub-grade
areas.
• Conduct visual inspections of water pipes for signs of
leakage, deterioration, and fitting integrity.
• Design roof drainage to anticipate a 100 year event rainfall
intensity for a one hour duration.
• Make sure roof drains are clear of debris.
• Locate heating system thermostats to effectively monitor
or control heat in areas where piping systems are located.
• Look at water leakage detection options. There are
several types available.
• Invest in backup generators, fuel gas, and/or boilers to
maintain heating systems during utility failures.
• Brace piping systems properly to withstand earthquakes.
Prevention and Preventive Maintenance
As part of a facility’s regular maintenance procedures, it’s
important to:
• Establish freeze protection protocols
• Ensure that windows, doors or skylights are not left
open causing temperatures to drop in parts of a heated
building.
• Ensure that the heating system is serviced long before
cold weather is expected and that maintenance is
ongoing during the cold season.
• Low temperature alarms should be regularly tested.
Pre- and Post-Emergency Planning
Mishaps happen. Successfully handling incidents like leaks
and flooding require advance preparation and planning, such
as:
• Know where the valves are and what they control. The
loss associated with leaks can be increased multifold if
no one knows how to shut off the water. Provide readily
accessible diagrams showing what valves control which
systems. Clearly label all valves. Valves that are concealed
should have their location well-marked.
• Have blanket order contracts for critical suppliers and
contractors. This ensures a priority response during
times of increased demand and also avoids haggling
over contract terms and conditions in the middle of an
emergency.
• Give second and third shift plant managers predefined
spending authority to request emergency contractor
services.
• Maintain basic salvage supplies such as plastic sheeting,
wet-vacuum cleaners and squeegees.
How to Prevent Water Ingress Damage
Water. It’s essential for life.
And it comes from many natural and
manmade sources. Direct rain, flood
water, surface water runoff, municipal
infrastructure (e.g. drains, sewers, and water
pipes), snowmelt, and ice are just a few.
But when there’s too much water, it can be a force
to be reckoned with. It can cause water ingress
damage. Routes of entry include the roof, perimeter
building envelope, connections to municipal
drainage (e.g. sewers) and normal building openings.
Preventing Water Ingress Damage
This document focuses on how to prevent water from natural
or manmade external sources from entering a facility’s
envelope. It’s designed to be a supplement to our “How to
Mitigate Water Damage” loss prevention series. It includes
basic measures to prevent water ingress damage in three
areas: Design and Engineering, Prevention and Preventative
Maintenance, and Pre and Post Emergency Planning.
Design and Engineering
When designing and building a new facility:
††Locate new facilities with due consideration to exposure to
natural catastrophes. Even if a facility is above a flood plain
or engineered against wind damage, a site can still have
ingress/egress issues and loss of utilities.
††Snow and wind load design should be based on ASCE 7 for
Risk Category IV buildings or other recognized insurance
industry guidelines.
††Particular attention should be paid to perimeter fastening
at the roof and reinforcement at changes in roof elevation
where snow can accumulate.
††Design sloped roofs with overhangs to prevent ice dams.
††Protect windows of buildings located in hurricane and
typhoon prone areas (basic wind speed of 130 mph (58
m/s)) with impact -protective system or impact-resistant
glazing.
††Design roof drain systems based on a 1 hour rainfall
intensity with a 1% chance of occurrence.
††Design flat roofs with a secondary drainage system
††Important processes or storage should not be located in
sub-grade areas.
• Prevention Views • September 2015 • 8
††Hastily prepared flood barriers such as
sandbags or temporary earthen levees
are only suitable for small scale blocking
such as individual doors or drains. For
full building protection, purpose-built
commercial barriers are needed
††Sewer backflow prevention valves should
be used.
Prevention and Preventative
Maintenance
As part of a facility’s regular maintenance
procedures, it’s important to consider:
Rain entry
††Ensure that windows, doors or skylights
are not left open causing temperatures to
drop in parts of a heated building.
††Ensure that the heating system is serviced
long before cold weather is expected and
that maintenance is ongoing during the
cold season.
††Low temperature alarms should be
regularly tested.
††Inspect roof drains, to make sure they
are clear, on a frequent basis. Increase
the inspection frequency just before and
during rainy and snow seasons.
††Inspect building walls constructed of
Exterior Insulation Finishing Systems
(EFIS) panels for cracks, repair them if
found
††On flat roofs, inspect the integrity of the
roof cover to ensure there are no holes,
tears or seams separating.
††Remove any tools and movable equipment
from roofs prior to any wind storm so it
would not blow around during a storm and
tear the roof covering.
††Inspect all roof top equipment to make
sure the equipment is properly secured so
it would not come loose during a storm and
tear the roof covering.
††Remove excessive snow from roofs.
Remove snow from the perimeter of
the high sloped roofs to minimize ice
damming.
Flood barriers
††Many purpose-built commercial flood
barriers require maintenance of mounting
equipment and flood gates. Large flood
gates can be motor driven and those
motors need maintenance.
Pre and Post Emergency
Planning
Water damage happens. When it occurs,
you need to be able to react quickly to the
situation. Reponse time can be the difference
between a minor loss versus a major one.
Advance planning is essential so that when
disaster strikes, you are prepared to act. For
getting prepared, you should:
††Have blanket order contracts for critical
suppliers and contractors. This ensures a
priority response during times of increased
demand and also avoids haggling over
contract terms and conditions in the
middle of an emergency.
††Water removal contractors are important
emergency response contractors.
Examples include:
†† Flood barriers that are already
identified in the plan, along with the
means to move them such as flatbed
trucks, all terrain forklifts, and cranes
†† Repair contractors
†† Emergency snow removal contractors
††Second and third shift plant managers
should have predefined spending authority
to request emergency contractor services.
††Maintain basic supplies such as sandbag
supplies if needed for flooding, plastic
sheeting, wet-vacuum cleaners and
squeegees.
By using this checklist of loss prevention
measures, you can help to prevent water
ingress damage at your properties.
ore at www.xlgaps.com
• Prevention Views • September 2015 • 9
Loss Prevention Measures for Fire Sprinklers
Study after study proves conclusively that
sprinklers are the most effective form of
fire protection for most facilities.
However, since the very beginning of their use, there has
been concern about water damage during a fire or an
accidental discharge or pipe break. Although these fears
are exaggerated, sprinkler system leaks do occur and have
caused significant damage. As with other water piping
systems, some basic measures can eliminate or mitigate
sprinkler leakage losses.
Sprinklers are among the most highly regulated of piping
systems. If sprinklers, along with associated underground
water mains, water tanks, and pumps, are installed, tested,
and maintained in accordance with industry standards, the
chance of an incident is vastly reduced.
Here are some loss prevention measures
related to sprinklers:
††Leaks due to corrosion are an area of increasing concern.
This is a highly complex topic and your XL Catlin property
risk engineer can advise you on the most appropriate
measure for your situation.
††Water hammers have caused major sections of pipe to
blow apart, even during a fire. Many water hammers can be
prevented simply by setting fire pump start pressures in
accordance with NFPA 20, Fire Pumps.
††Hotel room fire sprinklers have been activated by guests
mistaking them for a place to hang clothing. The industry
has addressed this by placing “no hangers” signs by the
sprinklers.
††Thrust blocks (which hold underground main fittings
in place at changes of water flow direction) tend to be
installed in a haphazard manner. Simply following industry
guidelines can eliminate most failures.
††Properly tested and maintained sprinkler system
waterflow alarms will provide quick notification of
water flow. Relying on security services to discover
sprinkler water flow has resulted in very long discharges;
sometimes over an entire weekend.
††Sprinkler system leaks associated with earthquakes can
be mitigated with proper bracing.
††Perhaps most importantly, during a fire, sprinklers should
only be shut down on the advice of the fire service incident
commander after the fire is clearly controlled. Someone
with a radio should stand by at the valve to re-open it
immediately if the fire redevelops.
• Prevention Views • September 2015 • 10
How to Increase
Chemical Plant
Safety
Although the design and operation
of a 100% safe Chemical Plant may be
a chimera, there are certain Procedures
and Methodologies that can be used to
minimize risk.
This article will describe some of these methodologies
(Inherently Safe Design, Occupational Health & Safety
Systems, Process Safety Systems), but concentrate on
the procedures that make up the critical components of a
Chemical Plant Safety Management System.
Traditional Methodologies
Inherently Safe Design
This concept comprises design considerations prior to
the detailed design and construction of the Chemical
Plant. Some of these considerations include: substitution
or reduction in hazardous inventories (raw materials,
intermediate products, waste streams), amelioration of
processing conditions (temperatures, pressures) and plant
layout design (separation distances).
Once the Chemical Plant is built, it becomes very difficult,
or unviable, to change any of these considerations. The
residual risk must then be minimized/ controlled using other
methods.
Process Safety Systems
These are composed of the hardware and software that
allows for the monitoring and control of the chemical
processes. These systems help the Plant Operators perform
controlled starts of the plant, monitor normal process
operation, manage deviation alarms and carry out safe plant
shut-downs.
System availability/ reliability may be enhanced through
the use of duplicate components or entire control systems.
Emergency Plant shut downs may require the use of High
Integrity (separate stand-alone, hard wired) Systems.
Occupational Health & Safety Systems
These focus on worker health and occupational safety. They
include components such as Personal Protective Equipment,
Machine Protection and Safety, Prevention of Trips and Falls,
etc. These requirements are often driven by local legislation.
These components are usually integrated into the site’s
Safety Management System.
Safety Management System (SMS)
A SMS may be defined as the organizational structure,
responsibilities, practices, procedures, processes and
resources needed to assess, control and prevent major
accidents in a Chemical Plant. It should be noted that these
systems are mandatory for all chemical plants subject to the
Seveso Directives in Europe.
The typical elements that compose a SMS will be described
below.
Management Aspects
These are a series of Procedures that include a written Safety
Management Policy with clear Objectives and Performance
Targets. The procedures outline the roles of the people
involved and who is responsible for implementing each
aspect of the SMS.
• Prevention Views • September 2015 • 11
They also include who is responsible for records and
documentation management at each stage, who will
carry out audits on the system, who will be responsible
for reviewing the audit results and implementing any
recommendations.
Hazard Identification and Risk Assessment
Procedures must be implemented to ensure that all hazards
are identified during the design, commissioning, operation,
modification and decommissioning phases of the plant.
Hazard Identification and Risk Assessments must be carried
out using one or more established techniques (HAZOP,
HAZAN, FAULT TREE, FMEA). All study results must be
fully documented. The produces must identify who will be
responsible for reviewing the results and implementing any
recommendations.
Knowledgeable plant personnel should be involved in all
aspects of this process. The studies must take into account
Human Factors Hazards.
Operating Procedures
Fully documented procedures must be in place for all aspects
of the operation. These must include separate and well
defined start-up, shut-down and emergency shut-down
procedures.
The Operating Procedures must fully document the plant’s
safe operating limits and critical operating parameters. They
must also document corrective action procedures and who
has authority to carry them out.
Process Safety Information
All information related to Process Safety must be fully
documented. Information related to the materials used,
processes, technology and equipment must be available.
The design basis for the processes, the limits within which
they have to safely operate and the methods for monitoring
all critical process parameters, must be included in the
documentation. Up to date Process Instrument Diagrams
(PID) and Electrical Line Diagrams (ELD) must also be
available.
The procedures must specify who is responsible for keeping
this documentation and the means for keeping it up to date.
Managing Contractors
Contractors are a major safety concern at any Chemical
Plant. The Contractor Management Procedures must include
the selection criteria used, the need for site inductions, the
person responsible for contractor management on site and
the safety procedures to be followed by all contractors while
on the plant.
For each job to be carried out, task specific training and safe
work practices must be documented and fully understood by
the contractors involved. Contractors must be fully aware of
the site’s emergency response procedures.
An SMS is the
organizational
structure,
responsibilities,
practices,
procedures,
processes and
resources needed
to assess, control
and prevent major
accidents.
A contractor evaluation of safety performance procedure
must also be implemented.
Management of Change
Failure to manage change has led to major Plant incidents
(Flixborough and Piper Alpha spring to mind).
Management of change procedures must clearly define
what a change is, specify who is responsible for authorizing
changes and the documentation that must be submitted for
approval.
Each proposed change must undergo safety reviews, hazard
identification and a fully documented risk assessment. The
documentation must include procedures for informing and
training all employees concerned.
The procedure must include who is responsible for updating
the plant information (PIDs, ELDs, Operating & Maintenance
Procedures, etc.).
Pre-Start up Review
Before any process is started (new or after any modification),
management must assure that the following procedures
have been followed: Quality Assurance of design
specifications, updating of the operating and maintenance
procedures, pre-commissioning testing, HAZOPs carried
out and actions implemented, Management of Change
• Prevention Views • September 2015 • 12
Procedures have been followed and employees have been
duly trained.
Equipment Integrity
Fully documented procedures must be implemented to
identify all equipment and systems requiring regular testing
and maintenance. Testing schedules for all safety critical
equipment must be drawn up.
Planned maintenance schedules must be available,
accompanied by detailed procedures for undertaking such
maintenance. These procedures must include the Quality
Assurance on all parts and materials to be used.
Maintenance personnel must be trained in these procedures.
They are also responsible for the management and control of
all testing and maintenance records.
Safe Working Practices
Safe Working Practices include procedures that address, as
a minimum, a site Smoking policy, Work Permit Systems,
Communication of work permit systems, Special work
procedures (hot work, confined spaces, excavation, etc.),
Hand-over between shifts, Identification and classification of
hazardous areas and Access control to hazardous areas.
The procedures must cover the training of personnel,
authority levels and document management.
Emergency Planning
An on-site and, if required, an off-site Emergency Plan
must be developed. Such plans must cover elements such
as the definition and classification of emergencies, early
warning systems, alarms and internal communications,
arrangements for notification of local emergency services,
other authorities and neighbors, response actions for
different scenarios, evacuation procedures and accounting
for personnel and visitors.
The plans must clearly define the roles and responsibilities
of all involved, provide for the training of personnel in
emergency response, testing of firefighting equipment and
regular exercises and drills.
The Emergency Plans must also be reviewed and amended
on a periodic basis.
An on-site and, if
required, an off-site
Emergency Plan must
be developed.
Training must be
provided in the
SMS roles and
responsibilities
and in Emergency
Response.
Accident/ Near-miss Reporting and Investigation
Responsibilities and procedures for accident/ incident
investigation must be implemented. These must also
include employee consultation/ training, mechanisms
for acting on and tracking completion of investigation
recommendations and dissemination of lessons learned.
Formal internal and external (including authorities) reporting
mechanisms must also be introduced.
Training and Education
Specific procedures must be introduced for the recruitment
of personnel, the setting of relevant competencies, the
monitoring and review of level of understanding and
the induction training & refresher training of operators,
maintenance staff, supervisors and managers.
As mentioned previously, training must also be provided
in the SMS roles and responsibilities and in Emergency
response. The maintenance of training records is also an
important part of these procedures.
Procurement
It is critical in a Chemical Plant that only the correct materials
are purchased and installed.
Procedures must be developed for obtaining safety
information about all materials, equipment and services
purchased. Records of quantities of materials purchased and
stored must be kept, updated and controlled.
Once these are delivered, compliance of purchased products
and services with initial specifications must be assured.
Systems must be implemented to ensure the safe storage
and management of purchased spares, raw materials and
finished products.
Security
These procedures must cover elements such as access
control of personnel and vehicles to the site, the protection
of the site boundary, the security of materials and inventory
control.
• Prevention Views • September 2015 • 13
In addition, it is also important that factors such as the
security of equipment and control/ trip systems and the
protection of documents, computer software and hardware
are considered.
Auditing
Auditing procedures are critical in ensuring a SMS is
operating as designed. These procedures must include
both internal and external auditing of all SMS components.
Qualitative and quantitative performance measures and
benchmarking must be developed.
The audits must verify the overall management of the SMS
and its implementation against documented requirements.
Particular emphasis should be placed on in-depth reviews
of systems critical to safe operation (hardware, procedures,
competencies).
Conclusion
The design, implementation and maintenance of a
Safety Management System (SMS) is critical for the safe
management, control of risks and prevention of major
accidents in a Chemical Plant.
The extent and thoroughness of an individual SMS will
depend on the inherent risk identified at each Chemical Plant
location.
Roberto Novo, Regional Engineer Leader
[email protected] +34 917023306
Bibliography
Further information on Safety Management Systems can be
found at:
• http://www.osha.gov (Regulations, 1910.119 APP C)
• http://www.planning.nsw.gov.au/~/media/Files/DPE/
Other/hazardous-industry-planning-advisory-paper-no9-safety-management-2011-01.ashx
• http://www.vwa.vic.gov.au/__data/assets/pdf_
Talent Spotlight:
Nancy Pennington,
Training and
Research Coordinator,
Belmont, NC
Tell us about your career at XL Catlin. Have you always
worked in insurance or/loss prevention? How did you get
into the industry?
I’ve been in the insurance industry since 1999. I spent many
years taking care of my family, and after a while I went back
to school at Belmont Abbey College. I got my business
degree and started working for Royal and Sun Alliance as
a Reinsurance Analyst. In 2004, I joined the legacy XL loss
prevention team. It was in its initial stage of building a risk
engineering team. In 2008, we acquired GAPS (Global Asset
Protection Services) and went from a team 35-40 to much
larger organization of approximately 175. The acquisition
allowed us to become a global loss prevention team and able
to service much larger customers. My initial role was a project
manager role and eventually moved into training/research.
In my current role, I wear ‘many hats’. I help with operations,
training, finance and other initiatives. My diverse background
and broad education has allowed me to contribute to a wide
range of projects – from the launch of Prevention Views in
September 2010 to playing a small part in the development
of our industry recognized iPad app risk assessment tool. I
also consider myself a lifelong student and have continued
to advance my education. Since joining XL Catlin, I have
received my MBA, MBA+ in accounting, and even hold a
certificate as a Fire Protection Specialist. I’ve always had lots
of support from the Property Risk Engineering organization
to advance my knowledge and skills.
What do you consider the most rewarding part of your job?
There are many rewarding parts of my job. I really enjoy
supporting our field team - our regional leaders, risk
consultants, etc. It’s rewarding when I can help the field team
do their jobs better, which in turn benefits our customers.
Some of the ways that I do this are by helping to revamp
• Prevention Views • September 2015 • 14
internal processes, increase efficiencies across the team,
and working hard to manage project deadlines. These ‘little
things’ can have big benefits to our customers and our entire
organization. The way I see it - helping our field team helps
our customers, which helps XL Catlin. These pieces all work
together.
What is the most challenging part of your job?
Even after ten years, one of the challenges is understanding
the ‘engineer’ lingo. I’m not an engineer, so don’t know the
technical acronyms. But I’m not afraid to ask questions. In
meetings, I’m always saying, “What does XYZ stand for?” or
“Tell me in layman terms, how this work?” Understanding
the distinct technical language is critical for my job, and it
always keeps me learning something new. In fact, I have
become quite familiar with referencing all the fire protection
guidebooks to understand complex terms.
What do you think sets XL Catlin’s Property Risk
Engineering team apart? What makes us different?
I would say our strong relationships and dedicated customer
service set us apart. As part of my job I’m able to accompany
field engineers on surveys. I usually do this 3 - 4 times/year
and this allows me to get hands-on experience. I put on my
hard hat, safety glasses, and protective boots and off we go. I
get to see how our field engineers do their jobs, interact with
our customers, and grow strong relationships. Our engineers
often have been working with the same customer for years.
For example, I was at a recent survey in Florida and it was
easy to see the trust between the customer and our risk
consultant. They don’t just talk site survey details and risk
reports. They catch up on the family, share vacation pictures
and real life stuff.
What are your interests outside of work?
Outside of work, my husband and I keep busy with home
improvement projects. Our two children are grown, so we
use our free time to buy, renovate and rent small homes
in the Belmont area. We now have four properties. We do
almost everything ourselves – painting, flooring, putting up
siding, and even installing new windows. I also love to spend
time traveling. We have a small cottage in Blowing Rock, NC
in the Blue Ridge mountains and also spend time at Holden
Beach, NC with family. Sometimes, it’s just so nice to get
away from it all!
Prevention Views
© 2015, Global Asset Protection Services, LLC.
Reproduction of material from this newsletter is permissible by request only.
PREVENTION VIEWS is provided for information only and does not constitute legal advice. For legal
advice, seek the services of a competent attorney. Any descriptions of insurance provisions are general
overviews only. Global Asset Protection Services, LLC (GAPS) is a leading loss prevention services
provider and a subsidiary of XL Group Ltd.
XL Catlin, the XL Catlin logo and Make Your World Go are trademarks of XL Group Ltd companies.
PREVENTION VIEWS is a newsletter published for clients of XL Catlin’s Property Risk Engineering team,
GAPS, Global Asset Protection Services LLC. We welcome your comments, suggestions and questions.
Please feel free to contact one of our area representatives:
[email protected]
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