Canadian Underwriter
Feature

Devil is in the Details


March 1, 2007   by Steve Williamson, Senior Loss Prevention Consultant, Global Asset Protection Services Unit, Swiss Re


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The property risk survey involves many steps: data collection, risk analysis and fire-system testing. It can be a complicated process, taking a day or even weeks, depending on the complexity of the risk and the nature of the contract. Below are examples of various stages of the process and an analysis of how each stage works. In the examples below, the stages include an exit meeting, plan review, site visits during equipment installation, acceptance tests and discharge testing.

THE EXIT MEETING, PART 1

The exit meeting with the client is an opportunity to summarize findings. Here’s a fictitious diary entry I might write, summarizing what I’m thinking while undergoing this stage of the process.

It’s 3:50 pm Friday afternoon. The site survey is completed; now it is time for my exit meeting with plant management. My feet and trousers are wet from testing the fire water system. My shirt is soaked with perspiration and my hands are filthy from crawling under floors and into ceiling spaces. I clean up and enter the conference room. Twelve sober-looking staff members are sitting around a table. I smile and shake the plant manager’s hand. He has a firm grip but pulls away to look at his watch. “Will this take long?””he asks.” “I have another meeting in 30 minutes.””I take a deep breath, then press on.

The challenge is to communicate the nature of the risk to site management and convince them of the need to invest in risk improvements. Management typically sees just “the tip of the iceberg” and associates loss with coverage by insurance; sometimes management considers only the probability of a property loss. Our job is to familiarize management with the potential consequences – and sometimes the hidden impact – of risks on their business.

THE EXIT MEETING, PART 2

Back at the presentation, the plant manager leans forward.” “If you’re to make your flight, we’d better let you finish,””he says. “Is there anything else I should know?””

“Yes,””I reply. “I saw many good signs of continuous improvement here at your site. I’m only sorry I ran over the allotted 30 minutes.”””No problem,” he answers, offering a handshake. “We’ll be in touch.””

PLAN REVIEW SERVICE

Let’s say that a week later, the manager in our above example asks me for advice on a major site expansion. Our Plan Review Service begins.

Initially, we generate a protection specification letter, based upon a “best practice” approach for industrial loss control. Contractors submit plans and calculations to our local office for a detailed review. While the project is still on paper, we often save costly rework by pointing out required design adjustments, helping to ensure that good loss control design is incorporated within the fabric of the new facility.

SITE VISITS

Months pass. Equipment installation is underway and the plant manager wants me to visit the site again. It is cold and wet this time. From the construction site cabin, we walk over through the rain to an open trench holding the newly laid fire water main. The mud sticks to my boots and makes them heavy. The trench is filling with soil, but I notice that the concrete supports for the pipes, a critical design element, look small compared to the specification. Undersized, they could result in the pipe failing under pressure so that no water reaches the fire protection systems. Had the trench already been filled, we would never have seen it.

Throughout a project, many such things can fail. Site visits during construction help us to find them before it’s too late to correct them. As independent experts, we’re able to give the client unbiased advice.

ACCEPTANCE TEST

Six months later, the project is complete and I am back to witness a series of tests for commissioning the fire protection equipment. This is the last stage of the project and there is a great deal riding on a successful outcome for both the plant and the installing contractor. Acceptance tests are essential to ensure that these systems will work as designed; in addition, they uncover any defects that might otherwise go undetected.

The pumps and sprinklers perform well; all concerned are satisfied.

Now is our opportunity to help the client better understand how their systems work, how to maintain them, test them and manage them in an emergency.

DISCHARGE TEST

My last day on site, we discharge-test the carbon dioxide gas system. The client only reluctantly agrees to this test, which they consider costly and of little benefit. During the test, the piping blows apart because of an improperly installed pipe-fitting. “We’d never have found that,””the manager says gratefully. “The devil is in the details,””I assure him.


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