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

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Page 1: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

2009 Risk 2009 Risk Management Management ConferenceConference

Risk Management…Risk Management…

Protecting Your Bottom LineProtecting Your Bottom Line

Page 2: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Discussion PointsDiscussion Points

• H1N1-PandemicH1N1-Pandemic• Industry Loss Trends Industry Loss Trends • Copper TheftCopper Theft• Equipment TheftEquipment Theft• Lightening LossLightening Loss

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H1N1H1N1

Are you really prepared?Are you really prepared?

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Novel H1N1 InfluenzaNovel H1N1 Influenza

Novel H1N1 (referred to a swine flu early Novel H1N1 (referred to a swine flu early on) is a new influenza virus that is on) is a new influenza virus that is spreading from person-to-person.spreading from person-to-person.

The United States government has declared The United States government has declared a public health emergency in the U.S. in a public health emergency in the U.S. in response to the H1N1 outbreak. response to the H1N1 outbreak.

CDC’s response goals are to:CDC’s response goals are to:• reduce transmission and illness severityreduce transmission and illness severity• provide information to help health care providers, provide information to help health care providers,

public health officials, and the public address the public health officials, and the public address the challenges posed by this emergencychallenges posed by this emergency

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Novel H1N1 InfluenzaNovel H1N1 Influenza

• The first cases of human infection The first cases of human infection with Novel H1N1 influenza virus with Novel H1N1 influenza virus were detected in April 2009 in San were detected in April 2009 in San Diego and Imperial County, California Diego and Imperial County, California and in Guadalupe County, Texas. and in Guadalupe County, Texas.

• The virus has spread rapidly.The virus has spread rapidly.• The virus is widespread in the United The virus is widespread in the United

States at this time and has been States at this time and has been detected internationally as well.detected internationally as well.

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Novel H1N1 InfluenzaNovel H1N1 Influenza

• Influenza is always serious – each year in Influenza is always serious – each year in the United States, seasonal influenza the United States, seasonal influenza results, on average, in an estimated results, on average, in an estimated 36,000 deaths and more than 200,000 36,000 deaths and more than 200,000 hospitalizations from flu-related causes.hospitalizations from flu-related causes.

• Because this is a new virus, most people Because this is a new virus, most people will not have immunity to it and illness will not have immunity to it and illness may be more severe and widespread as a may be more severe and widespread as a result.result.

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Signs and symptomsSigns and symptomsSymptoms of Novel H1N1 flu in people are Symptoms of Novel H1N1 flu in people are similar to those associated with seasonal flusimilar to those associated with seasonal flu

• FeverFever•Cough Cough • Sore throatSore throat • Runny or stuffy nose Runny or stuffy nose • Body aches Body aches • HeadacheHeadache• Chills Chills • FatigueFatigue• In addition, vomiting (25%) and diarrhea In addition, vomiting (25%) and diarrhea (25%) have been (25%) have been reported. (Higher rate than for reported. (Higher rate than for seasonal flu)seasonal flu)

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How does Novel H1N1 Influenza How does Novel H1N1 Influenza spread?spread?• This virus is thought to This virus is thought to

spread the same way spread the same way seasonal flu spreadsseasonal flu spreads

• Primarily through Primarily through respiratory droplets respiratory droplets – CoughingCoughing– SneezingSneezing– Touching respiratory droplets on Touching respiratory droplets on

yourself, another person, or yourself, another person, or an object, then touching mucus an object, then touching mucus membranes (e.g., mouth, nose, membranes (e.g., mouth, nose, eyes) without washing handseyes) without washing hands

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Can you get Novel H1N1 Can you get Novel H1N1 Influenza from eating pork?Influenza from eating pork? No. The Novel H1N1 influenza No. The Novel H1N1 influenza

virus virus (formerly referred to as swine (formerly referred to as swine fluflu virus) is not spread by food. virus) is not spread by food.

You cannot get Novel H1N1 flu You cannot get Novel H1N1 flu from eating pork or pork products. from eating pork or pork products. Eating properly handled and Eating properly handled and cooked pork products are safe. cooked pork products are safe.

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What can you do to What can you do to protect yourself from protect yourself from

getting sick?getting sick? There is no proven vaccine right now There is no proven vaccine right now

to protect against this new H1N1 to protect against this new H1N1 virus. virus.

However, everyday actions can help However, everyday actions can help prevent the spread of germs that prevent the spread of germs that cause respiratory illnesses like cause respiratory illnesses like influenza.influenza.

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Take these everyday steps to Take these everyday steps to protect protect

your healthyour health • Wash your hands often with Wash your hands often with

soap and warm water, soap and warm water,

especially after you cough especially after you cough

or sneeze. Wash for 15 – 20or sneeze. Wash for 15 – 20

seconds.seconds.• Alcohol-based hand Alcohol-based hand

wipes or gel sanitizers are also wipes or gel sanitizers are also

effective. effective.

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Take these everyday steps to Take these everyday steps to protect protect

your healthyour health• Cover your nose and mouth with a Cover your nose and mouth with a

tissue when you cough or sneeze. tissue when you cough or sneeze. Throw the tissue in the trash after you Throw the tissue in the trash after you use it.use it.

• Avoid touching your eyes, nose or Avoid touching your eyes, nose or mouth.mouth.

Germs spread this way.Germs spread this way.

• Avoid contact with sick people. Avoid contact with sick people.

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If you get sick…If you get sick…

• Stay home if you’re sick Stay home if you’re sick

for 7 days after your symptoms for 7 days after your symptoms

begin or until you’ve been begin or until you’ve been

symptom-free for 24 hours, symptom-free for 24 hours,

whichever is longer.whichever is longer.• If you are sick, limit your contact If you are sick, limit your contact

with other people as much as with other people as much as possible.possible.

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Watch for emergency Watch for emergency warning signswarning signs

Most people should be able to recover at home, Most people should be able to recover at home, but watch for emergency warning signs that but watch for emergency warning signs that mean you should seek immediate medical care. mean you should seek immediate medical care.

In adults: In adults:

• Difficulty breathing or shortness of Difficulty breathing or shortness of breath breath

• Pain or pressure in the chest or Pain or pressure in the chest or abdomen abdomen

• Sudden dizziness Sudden dizziness

• Confusion Confusion

• Severe or persistent vomiting Severe or persistent vomiting

• Flu-like symptoms improve but then Flu-like symptoms improve but then return with return with fever and worse coughfever and worse cough

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Emergency warning signs in Emergency warning signs in childrenchildren

If a child gets sick and experiences If a child gets sick and experiences any of these warning signs, seek any of these warning signs, seek emergency medical care.emergency medical care.

In children: In children: – Fast breathing or trouble breathing Fast breathing or trouble breathing – Bluish or gray skin color Bluish or gray skin color – Not drinking enough fluids Not drinking enough fluids – Severe or persistent vomiting Severe or persistent vomiting – Not waking up or not interacting Not waking up or not interacting – Irritable, the child does not want to be held Irritable, the child does not want to be held – Flu-like symptoms improve but then return Flu-like symptoms improve but then return

with fever and worse cough with fever and worse cough

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Put a plan in place!Put a plan in place!

• How can you cope with the temporary How can you cope with the temporary loss of 30-50% of your workforce?loss of 30-50% of your workforce?

• What positions can telecommute What positions can telecommute temporarily?temporarily?

• What essential positions must be in What essential positions must be in the office?the office?

• Limit public contact during periods of Limit public contact during periods of heavy outbreaks.heavy outbreaks.

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Industry Loss TrendsIndustry Loss Trends

• Theft is on the riseTheft is on the rise• Auto Accidents with Injuries are Auto Accidents with Injuries are

increasingincreasing• Lightening strikes are more frequent Lightening strikes are more frequent

and severeand severe• Slip and Fall Losses are still driving Slip and Fall Losses are still driving

workers compensation lossesworkers compensation losses

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Copper TheftCopper Theft

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IntroductionIntroduction

• Scrap copper prices have consistently been Scrap copper prices have consistently been at or above $2/lb for about the last 2 years.at or above $2/lb for about the last 2 years.

• As these prices stay at or above even the As these prices stay at or above even the $1.00 mark the incidence of theft and $1.00 mark the incidence of theft and vandalism will continue to rise.vandalism will continue to rise.

• Economic issues have also played a role in Economic issues have also played a role in the increase of copper theft. the increase of copper theft.

• Materials stolen are only about 5% of the Materials stolen are only about 5% of the total repair cost. It’s not what they steal total repair cost. It’s not what they steal but what they destroy.but what they destroy.

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Site AccessSite Access

• Sites should be gated and fenced Sites should be gated and fenced whenever possible.whenever possible.

• The gate should be at the entrance The gate should be at the entrance to the road.to the road.

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LightingLighting

• Building, storage and tower areas Building, storage and tower areas should be dusk to dawn, lit on all should be dusk to dawn, lit on all sides.sides.

• Lighting circuits should be Lighting circuits should be monitored. If extinguished, an alarm monitored. If extinguished, an alarm should sound.should sound.

• Vandalism to lighting typically Vandalism to lighting typically precedes theft attempts.precedes theft attempts.

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PresencePresence

• Non-office sites should be visited Non-office sites should be visited several times per week.several times per week.

• Reel storage should be walked daily.Reel storage should be walked daily.

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ConcealmentConcealment

• Out of site, out of mindOut of site, out of mind• When possible, all copper should be When possible, all copper should be

covered or buried.covered or buried.• Any exposed copper should be Any exposed copper should be

covered or hidden with paint.covered or hidden with paint.

Page 27: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Security SystemsSecurity Systems

• All buildings should have monitored All buildings should have monitored systems in place with tabs, motion systems in place with tabs, motion and other reliable sensors.and other reliable sensors.

• Video cameras should be Video cameras should be considered.considered.

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Pre-Vandalism Pre-Vandalism PreparationsPreparations

• Take Photos of your SitesTake Photos of your Sites• Visit Remote Site RegularlyVisit Remote Site Regularly• Security Procedures as previously Security Procedures as previously

outlinedoutlined

Page 32: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Post IncidentPost Incident

• Call Law EnforcementCall Law Enforcement• Photograph EverythingPhotograph Everything• Contact the Insurance CarrierContact the Insurance Carrier• Monitor the site as they frequently Monitor the site as they frequently

come back for morecome back for more• Review site security proceduresReview site security procedures

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Equipment TheftEquipment Theft

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Thefts and Vandalism:Thefts and Vandalism:Tips from the Thieves Tips from the Thieves

1.1. Thieves fear getting caught when stealing, storing, or moving Thieves fear getting caught when stealing, storing, or moving the equipment. The risk of getting caught when selling the the equipment. The risk of getting caught when selling the equipment is considered low because owners tend not to record equipment is considered low because owners tend not to record serial numbers, buyers of used equipment tend not to check serial numbers, buyers of used equipment tend not to check titles, and even with leads, it is difficult for police to identify titles, and even with leads, it is difficult for police to identify equipment and link serial numbers to owners. equipment and link serial numbers to owners.

2.2. Sites tend to either be well secured or not—either because the Sites tend to either be well secured or not—either because the worksite is impossible to secure or due to the attitude of the worksite is impossible to secure or due to the attitude of the contractor. There are enough sites with poor security to keep contractor. There are enough sites with poor security to keep thieves in business for years. It is not necessary to be 100 thieves in business for years. It is not necessary to be 100 percent secure, but to be at least better than average, so percent secure, but to be at least better than average, so thieves opt for the less secure sites. thieves opt for the less secure sites.

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Tips from the ThievesTips from the Thieves

3.3. There is no point in setting up security procedures that are There is no point in setting up security procedures that are either too complex or not regularly checked, as thieves will either too complex or not regularly checked, as thieves will just watch and wait until security starts to decline. just watch and wait until security starts to decline.

4.4. Employees of your firm and other local firms are both your Employees of your firm and other local firms are both your best allies and biggest risks. They are the ones who will best allies and biggest risks. They are the ones who will usually be responsible for the implementation of security usually be responsible for the implementation of security and may even know something about a theft. They may even and may even know something about a theft. They may even be the ones that let the thieves know about poor security. be the ones that let the thieves know about poor security. The key is to give then incentives to help rather than The key is to give then incentives to help rather than hinder. hinder.

5.5. If you don't record your serial numbers, you can forget If you don't record your serial numbers, you can forget about getting your equipment back. Even if recovered, you about getting your equipment back. Even if recovered, you still have to prove that it is yours. Better still is to find a still have to prove that it is yours. Better still is to find a way of making this information readily available to law way of making this information readily available to law enforcement and use signs and decals to let the thief know enforcement and use signs and decals to let the thief know this has been done.this has been done.

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Why are there increases in thefts?Why are there increases in thefts?

– Gun laws--Tougher penalties Gun laws--Tougher penalties

– Construction equipment=High valueConstruction equipment=High value

– Lighter penalties if caught Lighter penalties if caught

– Increased security in other business segments (fast Increased security in other business segments (fast food, mini-markets, etc.)food, mini-markets, etc.)

– In other words: A soft targetIn other words: A soft target

Page 37: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Top 10 states for equipment thefts Top 10 states for equipment thefts

Top 5 = 33% of total (NER, Jan. Top 5 = 33% of total (NER, Jan. 2004)2004)

1.1. TexasTexas2.2. North CarolinaNorth Carolina3.3. FloridaFlorida4.4. CaliforniaCalifornia5.5. GeorgiaGeorgia6.6. IllinoisIllinois7.7. TennesseeTennessee8.8. OhioOhio9.9. South CarolinaSouth Carolina10.10. IndianaIndiana

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

Page 38: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

What is stolen? What is stolen? Information taken from police reportsInformation taken from police reports

– Unpublished Construction equipment Unpublished Construction equipment – Skid SteersSkid Steers– Compressors Compressors – GeneratorsGenerators– PumpsPumps– LoadersLoaders– BackhoesBackhoes– And anything else found at a job siteAnd anything else found at a job site

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What else is stolen (ISO claims What else is stolen (ISO claims information)?information)?

– Utility trailers Utility trailers – LumberLumber– Hand & power toolsHand & power tools

Page 40: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Construction Site Thefts and Construction Site Thefts and Vandalism:Vandalism:

What’s the Problem?What’s the Problem?

– According to Insurance Service Office (ISO) there is an According to Insurance Service Office (ISO) there is an increase of 20% per year since 1996 increase of 20% per year since 1996

– National Surveys suggest $1 Billon+ in annual losses and National Surveys suggest $1 Billon+ in annual losses and associated costs like rental, downtime, management time, associated costs like rental, downtime, management time, and project overrunand project overrun

– Nationally 10%-15% is recovered. CPP=359/922=39%. Autos Nationally 10%-15% is recovered. CPP=359/922=39%. Autos =62% =62%

– Major problem in most areas. Urban, rural and suburban Major problem in most areas. Urban, rural and suburban areas. Most thefts from someone’s else’s property not the areas. Most thefts from someone’s else’s property not the yardyard

– Security issues may not be a high priority for contractors Security issues may not be a high priority for contractors compared to other exposures (WC, Auto/Fleet, GL) compared to other exposures (WC, Auto/Fleet, GL)

– Insurance Costs for contractors equipment rising due to Insurance Costs for contractors equipment rising due to thefts / VMM thefts / VMM

– Larger deductibles — Risk Sharing Larger deductibles — Risk Sharing – Prevention Efforts—will help to control insurance costs, keep Prevention Efforts—will help to control insurance costs, keep

project on schedule and within budgetproject on schedule and within budget– Recovery Efforts—will help to control insurance costs and Recovery Efforts—will help to control insurance costs and

future pemiumsfuture pemiums

Page 41: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Construction Site Thefts and Construction Site Thefts and Vandalism: Vandalism: The theft problemThe theft problem

Equipment recovery is hindered by:Equipment recovery is hindered by:– Time lapse from theft to theft discovery. An equipment theft Time lapse from theft to theft discovery. An equipment theft

on a Friday night might not be discovered until Monday on a Friday night might not be discovered until Monday morning. With larger fleets or multi-site operations theft morning. With larger fleets or multi-site operations theft may not be discovered for days, weeks, or months. may not be discovered for days, weeks, or months.

– Data. If an officer stops someone in suspicious Data. If an officer stops someone in suspicious circumstances he cannot identify heavy equipment as circumstances he cannot identify heavy equipment as stolen, as there is no mandated registration system for off-stolen, as there is no mandated registration system for off-road equipment. road equipment.

– Problems when theft is discovered: Problems when theft is discovered: • Without registration or title documents the owner may not Without registration or title documents the owner may not

have a Product Identification Number (PIN) or serial number. have a Product Identification Number (PIN) or serial number. • There is no standard format for the numbering of heavy There is no standard format for the numbering of heavy

equipment.equipment.• It is difficult for the officer or adjuster to even confirm that the It is difficult for the officer or adjuster to even confirm that the

equipment ever existed! No PIN or an incorrect PIN renders equipment ever existed! No PIN or an incorrect PIN renders the loss report almost useless.the loss report almost useless.

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Not all goes overseas or to MexicoNot all goes overseas or to Mexico

– 90% of recovered items are found within 65 90% of recovered items are found within 65 miles of theft sitemiles of theft site

Page 43: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Theft Prevention Efforts Theft Prevention Efforts PersonnelPersonnel

– Your workforce can be either a risk or an ally. Well defined Your workforce can be either a risk or an ally. Well defined management procedures plus employee incentives can make a management procedures plus employee incentives can make a difference. Include a confidential reward system for information difference. Include a confidential reward system for information leading to recovery of equipment and/or arrest of the thief.leading to recovery of equipment and/or arrest of the thief.

– Effective identification verification and background checks should be Effective identification verification and background checks should be performed whenever you hire people. Check references.performed whenever you hire people. Check references.

– Let employees know that theft impacts the bottom line and therefore, Let employees know that theft impacts the bottom line and therefore, has an effect on their compensation. Consider incentives that are tied has an effect on their compensation. Consider incentives that are tied to cost reductions related to theft and safety risks. This policy should to cost reductions related to theft and safety risks. This policy should be in writing.be in writing.

– Conduct safety meetings regularly and discuss loss prevention Conduct safety meetings regularly and discuss loss prevention programs.programs.

Page 44: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Theft Prevention Efforts Theft Prevention Efforts SiteSite SecuritySecurity

FencingFencing

– Chainlink (i.e. See through) 8’+ high with razor wire on top, if Chainlink (i.e. See through) 8’+ high with razor wire on top, if allowed, and kept clear of brush and debris.allowed, and kept clear of brush and debris.

– Limit keys, inspect, and repair fencing frequentlyLimit keys, inspect, and repair fencing frequently

Lighting - Fenced areas need to be well lightedLighting - Fenced areas need to be well lighted

– Good qualityGood quality– Placed at the perimeter of the property directed at the Placed at the perimeter of the property directed at the

worksiteworksite– Power sources must be well protectedPower sources must be well protected– Consider motion detectors to activateConsider motion detectors to activate

Page 45: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Theft Prevention Efforts Theft Prevention Efforts SiteSite SecuritySecurity

Barriers around equipment - Barriers around equipment - What you What you use is determined by what you are protectinguse is determined by what you are protecting

– ““Jersey Barriers”Jersey Barriers”

– Low walls or dirt bermsLow walls or dirt berms

– Trenches or ditches – 3 to 4 feet deep sloped so most vehicles Trenches or ditches – 3 to 4 feet deep sloped so most vehicles can’t be driven acrosscan’t be driven across

– Posts – 2 to 4 feet tall/less than 2 ft apart/ sunk 4 to 6 feet Posts – 2 to 4 feet tall/less than 2 ft apart/ sunk 4 to 6 feet underground in concreteunderground in concrete

Page 46: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Theft Prevention Efforts Theft Prevention Efforts SiteSite SecuritySecurity

LocksLocks– If padlocks are used, they should be “high security,” If padlocks are used, they should be “high security,”

i.e., casehardened or laminated steel and preferably i.e., casehardened or laminated steel and preferably with tamper proof guards.with tamper proof guards.

– Combination locks lower security due to the Combination locks lower security due to the potential for the sharing of combinations with potential for the sharing of combinations with thieves.thieves.

– When possible, ensure that key-in cylinder locks are When possible, ensure that key-in cylinder locks are protected by a guard to prevent removal.protected by a guard to prevent removal.

– Case hardened chains used with padlocks should be Case hardened chains used with padlocks should be thick enough to resist torch, saws, or bolt cutters.thick enough to resist torch, saws, or bolt cutters.

– Consider cable or wire rope instead of chain as it is Consider cable or wire rope instead of chain as it is harder to cut and requires special tools. Consider harder to cut and requires special tools. Consider “blind” or enclosed locking devices on equipment “blind” or enclosed locking devices on equipment doors and perimeter gates.doors and perimeter gates.

– Don’t leave open locks on gates etc. during the day. Don’t leave open locks on gates etc. during the day.

Page 47: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Theft Prevention Efforts Theft Prevention Efforts SiteSite SecuritySecurity

Signage & message boardsSignage & message boards– No Trespassing / Private Property / Keep OutNo Trespassing / Private Property / Keep Out– Must be posted for law Must be posted for law

enforcement to issue enforcement to issue

citationscitations– Helps in court cases & Helps in court cases &

insurance mattersinsurance matters– Sends a clear message Sends a clear message

that the site is monitoredthat the site is monitored

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Theft Prevention Efforts Theft Prevention Efforts SiteSite SecuritySecurity

– Neighbor watch programNeighbor watch program

– Law enforcement notifiedLaw enforcement notified

– Private security utilizedPrivate security utilized

– Reward Bulletins/ Member of local CPPReward Bulletins/ Member of local CPP

– Anchoring and Immobilizing Equipment Anchoring and Immobilizing Equipment

– Security Cameras Security Cameras

– Company policy discussing thefts, pilfering, and reward Company policy discussing thefts, pilfering, and reward systemsystem

Page 49: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Theft Prevention Techniques Theft Prevention Techniques MakeMake Your Equipment more difficult to stealYour Equipment more difficult to steal

– Night switch/ Kill switchNight switch/ Kill switch– Mechanics & others w/ keys Mechanics & others w/ keys – How many keys/ where are they?How many keys/ where are they?– Lockable fuel coversLockable fuel covers– Steering wheel locks Steering wheel locks – Remove batteryRemove battery– Consider using gauge protectors/Dash board covers Consider using gauge protectors/Dash board covers

and panel locks on your equipmentand panel locks on your equipment– Leave parked at 24/7 gas station. Buy all fuel there for Leave parked at 24/7 gas station. Buy all fuel there for

reciprocal agreementreciprocal agreement

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Theft Prevention Techniques Theft Prevention Techniques Inventory ControlInventory Control

Die StampsDie Stamps

– Die stamp your ID number underneath the Die stamp your ID number underneath the serial numberserial number

– Then add one or two more in hidden areasThen add one or two more in hidden areas

– Duplicate the units PIN / serial number in at Duplicate the units PIN / serial number in at least two additional places – one obvious and least two additional places – one obvious and one hiddenone hidden

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Theft Prevention Techniques Theft Prevention Techniques Inventory ControlInventory Control

– Clearly ID all equipment w/ non-removable weather proof Clearly ID all equipment w/ non-removable weather proof decalsdecals

– Customize the unit with unique paint colors, such as painting Customize the unit with unique paint colors, such as painting the roof a distinctive color or painting the unit number in large 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 characters - if it is more likely to be noticed, it is less likely to be stolenbe stolen

– Record any and all numbers on the unit, including engine and Record any and all numbers on the unit, including engine and chassis numbers, along with that number’s locationchassis numbers, along with that number’s location

– Record year, manufacturer, model number and PIN from Record year, manufacturer, model number and PIN from actual plates/decalsactual plates/decals

– When describing unit, use actual manufacturer model names; When describing unit, use actual manufacturer model names; avoid using generic terms such as “tractor” or “dozer.”avoid using generic terms such as “tractor” or “dozer.”

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Theft Prevention Techniques Theft Prevention Techniques Inventory ControlInventory Control

– Keep records of equipment location assignments, the dates of Keep records of equipment location assignments, the dates of delivery, and anticipated return.delivery, and anticipated return.

– Make note of any decals, special paint markings, company ID Make note of any decals, special paint markings, company ID codes, etc., that you have added to the unit.codes, etc., that you have added to the unit.

– Use decals and signs to tell the thief that all of this has been Use decals and signs to tell the thief that all of this has been done.done.

– This information can be recorded with a national database This information can be recorded with a national database such as the National Equipment Register. such as the National Equipment Register.

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Theft Prevention Techniques Theft Prevention Techniques Inventory ControlInventory Control

Key ControlKey Control– Make it a company policy that keys be removed from Make it a company policy that keys be removed from

equipment when not in use or it is being stored.equipment when not in use or it is being stored.– Make a note of who has access to, or is assigned keys to Make a note of who has access to, or is assigned keys to

equipment or a worksite.equipment or a worksite.– Consider a “Key Sign-Out Log” to ensure the whereabouts of Consider a “Key Sign-Out Log” to ensure the whereabouts of

all keys are known.all keys are known.– Keep all keys secured in a safe or lockable area after hours or Keep all keys secured in a safe or lockable area after hours or

when not being used.when not being used.

Page 54: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Theft Prevention Efforts Theft Prevention Efforts Smaller Equipment and Tools Smaller Equipment and Tools

BasicsBasics– 100% perimeter fencing w/ barbed/ razor wire if 100% perimeter fencing w/ barbed/ razor wire if

allowedallowed– Haul-away (large metal storage bins w/ lock guard & Haul-away (large metal storage bins w/ lock guard &

#5 Master lock, or better)#5 Master lock, or better)– Stainless steel is much harder to cut/burnStainless steel is much harder to cut/burn– Do not leave lock open during day Do not leave lock open during day – Park heavy equipment in front of bin doorsPark heavy equipment in front of bin doors– Do not store materials around fencesDo not store materials around fences– Paint all tools & equipment in your unique company Paint all tools & equipment in your unique company

colors colors – Use K rail (Jersey barrier) to block job entrances & bins Use K rail (Jersey barrier) to block job entrances & bins – Remove model # from bottom of lock Remove model # from bottom of lock

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Theft Prevention Techniques Theft Prevention Techniques Inventory ControlInventory Control

Identify materials and smaller toolsIdentify materials and smaller tools– Color codeColor code

•Blue Dot Services, Las Vegas, NV Blue Dot Services, Las Vegas, NV (painted all tools hot pink)(painted all tools hot pink)

– Mark materialsMark materials

– Tool Watch (Englewood, CO) A tool Tool Watch (Englewood, CO) A tool management information system that lets you management information system that lets you view lists of tools and equipment at various view lists of tools and equipment at various locations. Gives you an active approach at locations. Gives you an active approach at managing your tools. Allows accurate, up-to-managing your tools. Allows accurate, up-to-date information about your tool stockdate information about your tool stock

Page 56: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Theft Prevention Techniques Theft Prevention Techniques In TransitIn Transit

– Trailers and towable equipment should use Trailers and towable equipment should use quality trailer hitch or king pin locksquality trailer hitch or king pin locks

– Maintain minimum fuel levels on equipment Maintain minimum fuel levels on equipment being transported. This has both security and being transported. This has both security and safety advantagessafety advantages

– Secure and lock equipment to the transport Secure and lock equipment to the transport platformplatform

Page 57: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Theft Prevention Techniques Theft Prevention Techniques Equipment Not In UseEquipment Not In Use

– Return all equipment to its proper place or a secure area Return all equipment to its proper place or a secure area uponupon completion of a task or at the end of the day.completion of a task or at the end of the day.

– Don’t leave equipment on the side of roads or in public Don’t leave equipment on the side of roads or in public places overnight or particularly on weekends.places overnight or particularly on weekends.

– DDiscourage subcontractors from leaving or storing unused iscourage subcontractors from leaving or storing unused equipment on your siteequipment on your site

– Arrange/store equipment not in use in such a manner that Arrange/store equipment not in use in such a manner that a missing units area missing units are obvious. obvious.

– Position larger pieces of equipment in a circular pattern Position larger pieces of equipment in a circular pattern with with generators, compressors, and other small items generators, compressors, and other small items inside.inside.

– A supervisor or manager should regularly check on A supervisor or manager should regularly check on equipment that must equipment that must be left at a worksite for an extended be left at a worksite for an extended period.period.

– UUnload units and secure them to the trailers hitch if nload units and secure them to the trailers hitch if equipment must be left unattended.equipment must be left unattended.

Page 58: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Location, Tacking and Alarm Systems Location, Tacking and Alarm Systems GPS / LoJack / TattletaleGPS / LoJack / Tattletale

– Equipment dealers & renters installing on more Equipment dealers & renters installing on more expensive piecesexpensive pieces

– Can be removed. Inside job?Can be removed. Inside job?

– Easy tracking by law enforcementEasy tracking by law enforcement

Commercial vehicles and equipment of every type are at Commercial vehicles and equipment of every type are at risk for theft, including heavy construction equipment, risk for theft, including heavy construction equipment, tractor trailers, generators, trucks, vans, and rental tractor trailers, generators, trucks, vans, and rental vehicles. When your equipment or vehicles are stolen, it vehicles. When your equipment or vehicles are stolen, it stops your business and you lose time and money.stops your business and you lose time and money.

Page 59: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

IlluminationIllumination

– Lots of lights during off hours if possibleLots of lights during off hours if possible

– Motion detectors connected to outside lights Motion detectors connected to outside lights

Thieves, trespassers, and vandals do not Thieves, trespassers, and vandals do not want to be seenwant to be seen

Page 60: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Good Neighbor ProgramGood Neighbor Program

– Residential or commercial areasResidential or commercial areas

– Ask if interested in helping to fight crime in the area Ask if interested in helping to fight crime in the area (perfect job for that retiree living in the house across (perfect job for that retiree living in the house across the street)the street)

– Pay them a small fee per month or a discount on your Pay them a small fee per month or a discount on your services to keep a watch out for bad guysservices to keep a watch out for bad guys

– RewardsRewards

– Vandalism letter to homeowners in areaVandalism letter to homeowners in area

Page 61: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Local Law EnforcementLocal Law Enforcement

– Know who to call for what you are reporting-hopefully, Know who to call for what you are reporting-hopefully, you are a member of a CPP (Crime Prevention you are a member of a CPP (Crime Prevention Program). They do it all for youProgram). They do it all for you

– A simple 911 call really will not provoke much of a A simple 911 call really will not provoke much of a response. CONTRACTOR: “someone stole my forklift”response. CONTRACTOR: “someone stole my forklift”

– POLICE: “very sorry however we have a burglary in POLICE: “very sorry however we have a burglary in progress, a murder and 2 vehicle accidents to respond progress, a murder and 2 vehicle accidents to respond to. What’s your name/number, we’ll call if we find it”to. What’s your name/number, we’ll call if we find it”

– Cultivate a good relationship with the local police Cultivate a good relationship with the local police

Page 62: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

RewardsRewards

– Have it clearly posted on siteHave it clearly posted on site

– Policy manual. Reward (including employees) for those Policy manual. Reward (including employees) for those who turn in a co-worker for who turn in a co-worker for stealing/pilferage/vandalismstealing/pilferage/vandalism

– Make it clear in the policy manual that pilfering/ theft is Make it clear in the policy manual that pilfering/ theft is not tolerated and they will be handed over to the local not tolerated and they will be handed over to the local authorities if caught stealingauthorities if caught stealing

Page 63: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Surveillance CamerasSurveillance Cameras

– Use real and/or dummy camera’sUse real and/or dummy camera’s

– Clearly posted — “You’re on Camera”Clearly posted — “You’re on Camera”

Page 64: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

SummarySummary

– Theft policy Theft policy – Pre job site security planningPre job site security planning– Look at state of the art security devicesLook at state of the art security devices– Join a Crime Prevention Program in your area Join a Crime Prevention Program in your area – Get local law enforcement involvedGet local law enforcement involved– Look at key control, perimeter fencing, lighting, motion Look at key control, perimeter fencing, lighting, motion

devices, surveillance cameras, etc. devices, surveillance cameras, etc. – Inventory and photograph all equipment and update list Inventory and photograph all equipment and update list

when new equipment is added or at least annuallywhen new equipment is added or at least annually– Report all missing tools/equipment immediately to Report all missing tools/equipment immediately to

police and, if applicable, your local Crime Prevention police and, if applicable, your local Crime Prevention ProgramProgram

Page 65: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Lightening LossesLightening Losses

Page 66: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Lightning ProtectionLightning Protection

Page 67: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Facts about LightningFacts about Lightning

• A strike can average A strike can average 100 million 100 million voltsvolts of electricity of electricity

• Current of up to Current of up to 100,000 amperes100,000 amperes• Can generate Can generate 54,000 54,000 ooFF• Lightning strikes somewhere on the Lightning strikes somewhere on the

Earth every secondEarth every second• Kills 100 US residents per yearKills 100 US residents per year

Page 68: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Lightning Doesn’t Go Lightning Doesn’t Go Straight DownStraight Down

Page 69: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

What Does This Mean?What Does This Mean?

• Lightning can strike ground up to Lightning can strike ground up to ten miles from a storm (ten miles from a storm (Lightning Lightning out of the blueout of the blue))

• There is an average of There is an average of 2-3 miles2-3 miles between strikesbetween strikes

So how can we tell how far away lightning So how can we tell how far away lightning has struck?has struck?

Page 70: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Use The Five Second Use The Five Second RuleRule

• Light travels at about 186,291 Light travels at about 186,291 milesmiles/second/second

• Sound travels at only 1,088 Sound travels at only 1,088 feetfeet/second/second

• You will see the flash of lightning You will see the flash of lightning almost immediately almost immediately

• 5280/1088= 4.95280/1088= 4.9• About About 5 seconds5 seconds for sound to travel for sound to travel 1 1

milemile

Page 71: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Stepped LeaderStepped Leader

Page 72: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

StreamersStreamers

Page 73: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Four Main Features of Four Main Features of Lightning ProtectionLightning Protection

• 1) Air terminal1) Air terminal

• 2) Conductors2) Conductors

• 3) Ground termination3) Ground termination

• 4) Surge protection4) Surge protection

Page 74: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.

Surge Protection is a Surge Protection is a MustMust

Page 75: 2009 Risk Management Conference Risk Management… Protecting Your Bottom Line.
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Thank YouThank You

Paul SamsonPaul Samson

Great American Insurance Great American Insurance CompanyCompany

49 East Fourth Street, Suite 70049 East Fourth Street, Suite 700

Fisherville, KY 40023Fisherville, KY 40023

(502) 477-1988(502) 477-1988

[email protected]@gaic.com