Ten Qualities of a Well-Protected Facility

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Ten Qualities of a Well-Protected Facility
Joshua M. Gerkin Account
Executive FM Global
Cleveland Operations
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Todays Objectives

• Brief introduction to FM Global
• Ten Qualities
• Fire Test Videos Samples
• Resources
• Does this stuff really work???

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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.

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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 Policyholders
Surplus 6.3B Assets 13.0B Scope of
Operations Worldwide Number of
Employees 4,800 Number of Engineers 1,500
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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
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FM Global Validation

• Combined Ratio lt80 for the last 5 years.
• Customer retention rate gt90 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.

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Ten Qualities of aWell-Protected Facility
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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.

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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

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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

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Operation of Various Sprinkler Heads
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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

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Aerosols
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Flammable Liquids
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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

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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

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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

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8 Maintenance of Buildings
Equipment

• Electrical
• clean, cool and dry
• Machinery
• friction, alignment, vibration, periodic
  replacement
• Boilers
• safety controls, fuel leaks, overheating,
  overpressure

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9 Emergency Response Team Public Fire
Service

• Person in Charge
• Notifier
• Control Valve Operator
• Fire Pump Operator
• Fire Squad
• Pipe Fitter
• Electrician
• Salvage Squad

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10 Protection Against Exposure Hazards
Fire, Windstorm, Flood, Earthquake Collapse

• Roof Deck/Coverings Uplift Resistance
• FERPs (Flood Emergency Response Plans)
• Permanent Flood Protection
• exterior openings, site
• Seismic Design
• bracing, anchoring, seismic gas shutoff valves
• Roof Loads
• ponding, snow

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Ten Qualities Conclusion

• EXPOSURE DRIVEN
• 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.

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Test Videos
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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?

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ESFR Obstructions
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Idle Pallets
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Resources available to you
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Resources www.fmglobal.com
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Resources www.fmglobal.com

• 173 Years of Research
• Approvals Guide
• Resource Catalog
• Seminars and Training
• Free Data Sheets!!! www.fmglobaldatasheets.com
  
• FM Global Grant Program

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Resources www.tsblosscontrol.com
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Resources www.tsblosscontrol.com

• 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

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Does this stuff really work???
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Does this stuff really work? The impact of Human
Element
Effective Emergency Response
1871 Losses
Ineffective Emergency Response
410 Losses
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
10 yr. fire response incidents vs. average gross
loss (US)
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Does this stuff really work? Two types of Losses
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Does this stuff really work? Aggregate Loss
Example
FM Global Windstorm Loss from 2004 Hurricanes
Client benefit from natural catastrophe engineerin
g 430M
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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
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Does this stuff really work? Aggregate Loss
Example
FM Globals 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.

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Protecting the value business createsThank You!