There are a number of independent research and public safety organizations and governmental regulatory bodies with jurisdiction over inspection, testing, remediation, and compliance certification for commercial and residential real estate. From the International Code Council (ICC) and Occupational Safety and Health Administration (OSHA), to the National Fire Protection Association, building codes covering materials and installations, testing schedules, and mitigation measures are studied and best practices codified, serving as the basis and minimum requirements used in most areas of the country. Local, regional, state, and federal government agencies weigh in on any number of safety measures designed to keep people safe, with varying degrees of enhanced overlays on the established minimum requirements laid out by the independent research and public safety organizations. Be sure to check on specific requirements based on location.

To assist our insurance agent/broker clients in educating their current or potential policyholders, Novita has created a printable/downloadable Inspection Hazard infographic that overviews critical areas where compliance can lead to better public safety and help them in navigating the insurance submission process to a successful outcome.

For more information, contact Novita Insurance Solutions, LLC. Your clients depend on you. You can depend on us.

In this post, Novita examines stair and rail system safety. Property owners are responsible for maintaining a relatively safe environment – premises liability – as a guest or employee can sue for injuries if there is a slip and fall on stairs due to unsecured or weak railings, improperly positioned risers and treads, poorly maintained treads, improper gaps in stairs or railing systems, etc.

Staircase and stairway accidents were found to be the second leading cause of accidental injury, next to motor vehicle accidents. In the US, there are 12,000 stairway accidental deaths annually. In those 65 and older, falls are the leading cause of accidental death.

Every year, an average of over one million injuries occur as a result of falling down stairs.

The American Journal of Emergency Medicine, 2017

Building codes and regulations are working to address conditions and lessen or mitigate contributing factors in stairway accidents.

ICC/OSHA, IRC and IBC

Communities across the US have sets of rules for builders and other building trade professionals governing construction practices. The intent is to ensure the safety of all aspects of building construction. Local codes often vary from location to location, but most are based on model codes created on a national or international level by committees or councils consisting of recognized trade professionals.

The International Code Council (ICC), an organization responsible for both the International Building Code (IBC) and the International Residential Code (IRC), govern commercial and residential building and remodeling practices, respectively, and are the basis for most local code regulations. The International Code Council (ICC), in conjunction with the Occupational Safety and Health Administration (OSHA) create and set guidelines and requirements to ensure the safety of any premise, whether commercial or residential.

The International Building Code (IBC) regulates any set of stairs used by the public, including any stairway that connects a building to a public space. These regulations must account for the safety of every type of person — including children and the elderly. Occupational Safety and Health Administration’s (OSHA) Fixed Industrial Stair regulations (1910.24) govern the design, construction and use of both interior and exterior stairs used to access equipment, machinery, tanks, elevated platforms, other floors, or pits.

IBC/OSHA

The insurance industry relies on compliance with these codes when evaluating the insurability of both commercial and residential properties. Insurance companies follow the minimum requirements set by OSHA as well as local and state laws. They may also require additional safety measures necessary to reduce risks and potential danger that may result in a liability claim against a specific property.

The International Residential Code (IRC) is responsible for minimum requirements for building stairs to assure a level of safety to the public. Many aspects are looked at including the height, width, and length of each area.

IRC

These requirements often vary by state, county, and local ordinances but most conform to standards issued by the ICC and OSHA. Not following these standards can put people at risk. It can also cause a property owner a significant amount of money due to fines and higher insurance premiums.

Many believe it’s only older individuals that primarily fall down the stairs. Although a high portion of those in the study were older adults, the highest statistic (67.2%) underscores it was a combination of older adults, along with younger children.

The American Journal of Emergency Medicine, 2017

When working with your insurance clients, it’s important to have them take a critical look at a property to ensure it is in compliance with current codes and additional, enhanced safety measures. Not doing so may impact not only overall coverage cost, but even their ability to obtain coverage.

Common Stairway Terms

Stringer: The stringer is the entire sawtooth-shaped member or support upon which risers and tread rest. Typically there are least two stringers per staircase. Alternatively, solid side stringers with no sawtooth anchor the treads using metal connectors and no risers, creating an open appearance. Another design – growing in popularity – is the “floating” staircase, using a single center beam to support treads and having no riser, or designs that anchor treads to a structural element (i.e., a wall) on one side.

Riser: A riser is the vertical measurement of each stair. Risers can either be enclosed or left open, as in deck or basement stairs. The board that encloses the back of the step is also called a riser.

Tread: The tread is the horizontal section of each stair, sometimes called the run. This is the surface the user steps on.

Landing: A landing is a platform between two flights of stairs. It is also the approach space at the top and bottom of the stairs.

Nosing: The section of the tread that overhangs the riser below.

Staircase width: Width refers to the length of risers and treads from side to side. For code requirements, the minimum staircase width is the horizontal dimension between the sidewalls of a staircase, measured above the handrail(s).

Headroom: Headroom is the vertical dimension from the stair treads to the ceiling directly above. It is measured from a sloping imaginary line that connects all of the stair nosings

Baluster: The vertical guards that support the handrails along staircase and guardrails on landings.

Railings: Guardrails and handrails are critical safety feature on outdoor and indoor stairs, and ramps:

• A guardrail is located near the open sides of elevated walking surfaces to minimize the possibility of a fall from the walking surface (landings, platforms, decks, porches, and similar structures) to a lower level.
• A handrail is a horizontal or sloping rail intended for grasping by the hand for guidance or support. Handrails may be installed along stairways, balconies or walkways.

For an in-depth look at current ICC/OSHA and IRC (CA adaptation) requirements and regulations regarding the maximum/minimum heights of stair risers (currently maximum is 7 3/4”); tread run depth (currently 10-11” minimum); headroom (6’8” minimum); staircase landing width (minimum 36” in direction of travel); staircase/stairwell lighting requirements; railings (both handrail and guardrail minimum and maximum heights, widths, loads, clearances, and spacing); and balusters (space between them must be 4” or less). For more in-depth information, check the embedded links.

Some cities and states add in their own additional rules, so be sure to have clients check with their local building department for current guidelines in a specific area. While not every municipality adopts every part of every code, the insurance industry does use ICC as the foundation for its best practices and underwriting guidelines.

For assistance with Commercial LRO, contact Novita’s team. Your clients count on you; you can count on us.

As insurance professionals entrusted with structuring safeguards for your client’s real property assets, you are an important resource and information conduit to your property owner clients. And Novita is committed to keeping you at the fore of insurance best practices, regulations, requirements, and knowledge needed to successfully navigate an ever-changing insurance landscape.

This week, Novita kicks off a series on property hazards and inspections, starting with the 5-year NFPA 25 Fire Sprinkler Inspection Report. When a commercial property insurance provider requires proof of fire safety compliance they are most often talking about the NFPA 5-Year Fire Sprinkler Inspection Report. We delve into recommended and required fire sprinkler system inspection schedules, testing schedules, and ongoing maintenance to help you underscore the importance of safeguarding real property assets.

Pat Lowther, President and CEO, Novita Insurance Solutions, LLC

When a commercial property insurance provider requires proof of fire safety compliance they are most often talking about the NFPA 5-Year Fire Sprinkler Inspection Report.

Modern fire safety codes and standards trace their origins to the 19th-century development of automatic sprinklers. The NFPA – the National Fire Protection Association – began when a small group of representatives of leading fire insurance and sprinkler interests gathered in Boston in March 1895 to address the growing issue of non-standardized piping size and sprinkler spacing. The members of this fledgling group knew nine radically different standards for piping size and sprinkler spacing could be found all within 100 miles of the city of Boston. They realized this plumber’s nightmare had to be resolved or the rate of sprinkler system failure might prove unacceptable, perhaps catastrophic.

The result of this – and subsequent meetings – coalesced into the NFPA and the development of standardized equipment, piping, installation, and later, testing and reporting. The NFPA started the inspection code requirements for automatic fire sprinkler systems in 2002, known as the NFPA 25 5-Year Fire Sprinkler Inspection Report, a move that helps drive proper maintenance of these critical life safety systems.

The NFPA 25 5-Year Fire Sprinkler Inspection Report

This internal inspection of the pipe is conducted every five years. The 5-year inspection sticker verifies a property’s fire sprinkler is up to code. To keep fire sprinklers working properly, property owners and/or facilities managers perform inspections and testing according to NFPAs baseline for inspection, testing, and maintenance of water-based fire protection systems. Compliance helps maximize system integrity to avoid failure and ensure a fast, effective response in a fire emergency, which is the Standard for the Inspection, Testing, and Maintenance of Water-Based Fire Protection Systems.

It also helps property owners avoid legal fines, reduces the potential for lethal accidents, and helps mitigate expensive repairs, when ensuring all fire sprinkler system components are code compliant.

Property owners should maintain all records of the most recent fire sprinkler inspections and tests for at least one year and be prepared to show these records to service providers, such as insurance carriers, upon request.

What is included in the NFPA 25 5-Year Sprinkler Inspection Report?

This inspection goes beyond the systems, valves and piping, and includes internal examination and testing. At random points in the fire sprinkler system, samples are taken to check for, and identify “MIC” (Microbiologically Influenced Corrosion; corrosion aided by bacterial activity in a sprinkler system. MIC can destroy sprinkler piping at an alarming rate, and byproducts of corrosion can clog sprinkler piping and sprinklers, which may inhibit the system from operating as it was originally designed), rust, and slime that may obstruct the piping and compromise the system, and other organic or inorganic foreign matter). 

This inspection is especially important because, although a fire sprinkler system failure is rare, when it does occur it is often associated with a blockage in the system. Materials blocking the fire sprinkler piping can cause either no water – or insufficient water – when a fire sprinkler activates during a fire. The 5-year inspection is the only inspection that ensures there are no blockages in the system, so water flows with the correct pressure.

NFPAs 5-year testing serves as the foundational standards baseline for these tests, with a number of states adding more layers of stricter requirements. As with any property ownership issue, local/regional/state requirements should be consulted and adhered to as required by law.

What does the 5-year fire sprinkler inspection actually entail?

When a 5-year fire sprinkler inspection takes place, a fire protection inspector verifies the operation and condition of check valves and internally inspects the pipe. Internal examination is performed at the aforementioned minimum four points – system valve, riser, cross main, and branch line. Inspectors look for corrosion obstructions – either organic or inorganic foreign matter.

During the inspection, valves are examined to ensure proper operation. Pipes are drained and checked for foreign matter. Additionally, all internal components are cleaned, repaired, or replaced as necessary, according to the manufacturer’s instructions.

The inspection should also address other areas of the system that could cause concern, including valves, gauges, sprinkler heads, water storage, and “FDC” (Fire Department Connection; part of a sprinkler or standpipe system):

• Gauges must be replaced or tested compared to a calibrated gauge.

• Fire sprinkler heads must be inspected and changed where needed.

• The water storage tank should be examined by a licensed industrial diver or distant video if not by the inspector. Your inspector will check for signs of pitting or corrosion, including the tank coating, pinholes, cracks, and overall wall thickness.

• All valves, especially stress lowering, stress aid and fire hose valves should be examined for corrosion or obstruction, adequate pressurization levels, and functioning clappers and seats.

• Internal piping is investigated for obstruction if foreign materials are detected.

• The FDC should also be inspected to ensure that, in case of an emergency, the fire department can hook into the FDC and it is free of obstructive material that may not allow water to pass.

If the presence of organic or inorganic matter (“MIC”) is found within the system, a deeper, more comprehensive obstruction investigation must follow.

Internal pipe examinations for “at-risk” systems take the inspection a step further.  At-risk systems – those fifty years and older – need to be monitored and inspected more closely than newer systems.  These at-risk systems are also examined at the system valve, riser, cross main, and branch lines.

After completion of the 5-year inspection, the report is completed and submitted to the property owner.

How often should a fire sprinkler system be inspected?

An inspection is essentially a visual once-over to check the status of the sprinkler system. According to NFPA 25, this is the inspection schedule a property owner or facilities manager should follow:

• Weekly or monthly: Inspect the gauges in dry, pre-action, and deluge systems as often as once a week. Wet pipe system gauges can go a month between inspections.

• Quarterly: Every three months, have the water flow alarm devices, valve supervisory alarm devices, supervisory signal devices, control valves, and hydraulic nameplates inspected.

• Annually: Once a year, inspect the hanger/seismic bracing, pipes and fittings, information signage, and spare sprinklers.

• Every five years: Conducting an internal inspection of sprinkler piping is only required once every five years.

How often should a fire sprinkler system be tested?

Tests are comprised of more in-depth physical checks. NFPA 25 dictates a baseline fire sprinkler testing schedule as:

• Quarterly: In order to be as effective as possible, fire sprinkler mechanical devices should be tested quarterly.

• Semiannually: Every six months, vane and pressure switch type devices must be tested.

• Annually: Full testing and tagging should be performed annually. During a complete fire sprinkler system test, the technician should perform physical checks on all parts of the fire sprinkler system. These checks include water flow tests, fire pump tests, antifreeze concentration tests (in applicable systems), alarm tests, and trip tests of dry pipe, deluge, and pre-action valves.

• Every 5 years: Sprinklers exposed to extra-high temperatures and harsh environments, along with gauges on all sprinkler system types, should be tested or replaced every five years. An investigation of piping and branch line conditions is undertaken by opening a flushing connection at the end of one main and by removing a sprinkler toward the end of one branch line to investigate the presence of foreign organic and inorganic material.

• Every 10 years or more: Dry sprinklers should be tested or replaced every 10 years. Fast-response sprinklers should be tested after 20 years in use, and every 10 years after that. Standard response sprinklers should be tested after 50 years in use, and in 10-year intervals after that.

What should a property owner do if the inspection finds corrosion (MIC)?

If foreign material is found in any system in a building, all systems are then assessed, and an Obstruction Investigation follows. If foreign matter is found – a trigger point – complete flushing of the systems is required and removes any obstruction.

Corrosion in fire sprinklers is a major issue. It can change the trajectory of a fire from that of an inconvenience – if the fire sprinklers are activated correctly – to a devastating loss of life, property, and production if the fire sprinkler water source was blocked. By following fire sprinkler inspection requirements, commercial property owners have peace of mind in knowing that their facility and people are safe.   

How should your clients prepare for the 5-Year Sprinkler Inspection?

To prepare for the 5-year internal sprinkler inspection and maintain the safety of their facility and its occupants, your property clients need to perform regular maintenance of their internal sprinkler system, replacing and inspecting parts as necessary.

Conclusion

Novita’s team is here to help you secure insurance coverages that address your client’s risk exposure. For additional information, contact us and visit the company’s LinkedIn page

GETTING AHEAD OF THE GAME

Earlier in this new year we’ve looked at divergent forecasts for the Commercial Property insurance market ranging from the California Surplus Line Association to leading insurance brokerage data and commentary (Insurance Journal). While the landscape varies in terms of rate increases, everything we’ve seen thus far points to a higher degree of difficulty this year for brokers and agents looking to cover “challenged occupancies,” with markets placing the blame for rate accelerations on 2021s overall “extreme loss patterns.”

A review of various forecasts all point to the same conclusion – prioritizing risk improvement is key. This is particularly important for property owners in high risk areas prone to natural catastrophes such as the designated wildfire and Wildland-Urban interface (aka “WUI” or “Woo-Eee” – the zone of transition between wilderness and land developed by human activity; an area where a built environment meets or intermingles with a natural environment; check this link for an interactive California ESRI ArcGIS WUI), wind, hail, and tornadoes.

Our last blog entry on Novita’s Learning Center delved in to how brokers and agents can work to position their clients – new submissions or renewals – to respond to proactively to a 2022 market under pressure.

2022 “FOUR STEP” PROGRAM FOR BROKERS AND AGENTS

1. Gain – and maintain – a position as trusted source/resource for your clients. Brokers and agents have a unique relationship as a valued protector of a client’s assets. Providing advice and counsel to clients in the evolving world of risk management and mitigation is key to helping clients manage coverage and cost. Establishing and maintaining a collaboration culture with clients based on effective communication helps brokers and agents better market a specific risk, while also managing client expectations.
2. Dig into current coverage; assess whether the client is properly covered. Underwriting criteria changes as risk appetite rises and falls. What may have worked in the past may not be the answer in the present, and even less so in the future.
3. Review client programs. Insurance Industry studies show some 75 percent of commercial buildings are underinsured. Insurers need accurate assessments of replacement costs in case of an event. The estimate can help improve achieving premiums appropriate to a client’s risk, better quantify exposure, and help educate and inform clients on adequate policy limits.
4. Increase the use of data and analytics when preparing new submissions and renewals. Using hard data and analytics helps form the narrative and tells a more complete story of a property to an underwriter as underwriting guidelines and criterion become more complex.

At Novita Insurance Solutions, LLC, we work closely with our agent/broker partners to vet, develop effective risk management and mitigation strategies, and communicate information needed to secure coverages. Contact us and let us assist you in keeping on track and successfully getting across the finish line in 2022. We got this!

2021 loss experience is pressuring insurers to respond in several ways. How do you approach in 2022?

“The magnitude of insurance losses from catastrophic weather and from gargantuan civil litigation awards is a clarion call for legislators, regulators, individuals, businesses and insurers to act to protect lives and property from avoidable loss. The loss experience of 2021 is pressuring insurers to respond in several ways. First, insurers are challenged to be creative and relevant, providing protection to individuals and businesses against risks new or larger than heretofore experienced.“ January 3, 2022 Insurance Journal

We’ve all seen the handwriting on the wall. 2021 was a difficult year and has set the tone for 2022. Industry Brokers/agents will need to work closely with their clients to take control of the insurance submission and renewal process with a commitment to broad data collection and data quality, an ability to differentiate their client, an ability to build a narrative, and to communicate a winning story. Here are four tips to help market risk in 2022.

I. Information

Increased information will help buyers more accurately model any changes (e.g., reduction in limit, or increased retention) and help assure risk management strategies reflect organizational risk appetite or corporate philosophy.

2. Analytics

Analytics provide important guidance as buyers align offerings in the marketplace to their rapidly shifting risk transfer needs.

3. Data

Buyers need to distinguish themselves from their peers, especially in challenged occupancies. Risk managers and insurance agents and brokers must help shape the narrative and effectively tell this story, providing necessary data to satisfy underwriters’ insistence on robust underwriting information.

4. Communication

Communication is essential – telling a story of mitigation efforts, improved loss control measures and disaster recovery/business interruption plans remain critical in differentiating a buyer’s risk.

Conclusion

We’re just about three weeks in to 2022. Setting up this four-step framework will help increase risk marketing effectiveness with underwriters now and throughout 2022, as well as manage client expectations. Need additional assistance? Contact the team at Novita Insurance Solutions, LLC, for more information; we’re here to help.

Really, what could possibly go wrong?

Each unit may have a separate heating system, or there may be a boiler to provide heat to all units. All systems must be properly maintained on an ongoing basis. Other property concerns are age, condition, and repair of the building; the size, and configuration of the building including the roof expansion; and the condition and structure of the roof.

Other factors impacting property exposure is unique architecture or design where valuation may be a concern; and the underlying risk associated with shopping centers as attractive soft-targets for terrorism.

Premises liability exposure is often high to very high due to the number of visitors to the premises, with special events posing additional concerns due to crowds. The owner may be responsible for maintaining the building, parking lots, and sidewalks, or they may transfer these responsibilities by contract to a primary tenant. Tenants are normally responsible for the condition of the area they control.

All premises must be well maintained with aisle ways free of debris, flooring in good condition, with no frayed or worn carpeting, and no cracks or holes in flooring. The number of exits must be sufficient and well marked, with backup lighting in case of power failure. Steps should have handrails, be well-lighted, marked, and in good repair. Parking lots, parking garages, and sidewalks need to be in good repair, with snow and ice removed, and generally level and free of exposure to slips, trips, and falls.

Security of visitors through the shopping center, including parking lots, is the responsibility of the owner or operator of the premises. There should be frequent security patrols. Should an emergency situation arise, there should be evacuation plans in place to quickly move tenants and visitors to a safe area. If security personnel are employed, procedures must be established as to appropriate response to their assigned duties. Additional exposure is presented if the security personnel carry firearms. Contractual relationships should be reviewed, and certificates of insurance obtained from tenants, vendors, and subcontractors. Additional insured status should be considered.

Contact us for additional information and to obtain a quote.