baby it`s cold outside!

“BABY IT’S COLD OUTSIDE!”
DEFROST YOUR BUSINESS RISK THIS WINTER
We all naturally winterise our homes: fill up the log shed or the
coal hole, seal up drafty doors or windows, check the pipe
lagging and get the boiler serviced. It’s no different for your
business but you’d be surprised how often the office gets
overlooked. Importantly, now is a good time to check your
insurance policies for exclusions that might catch you out when
the mercury drops.
This winter has already thrown in some curve balls: widespread
and heavy flooding in Cumbria followed by snow and frost.
PricewaterhouseCoopers estimates the damage from Storm
Desmond at £500 million and the cost of the flooding will likely
be twice that of the flood damage caused across the Lake
District in 20091. The truth is, we never really know what our
weather’s going to dish out until we’re in the midst of it. But we
do know that when she chooses, Mother Nature can bite hard.
Snow, ice, frost, trips and slips, burst pipes, rapid thawing and
flash flooding create serious operational and liability risk issues
for businesses around the country – across public services and
transportation, property management, industry and general
commerce. Take the St Jude’s Day storm in 2013 – over 105,000
claims and an estimated £130 million paid out to fix extreme
weather damage2. While such an event is an exception rather
than the rule, the colder months to March mean an extra layer
of chilly risk that you need to mitigate.
In this bulletin from leading UK insurance broker Arthur J.
Gallagher, we take a practical look at the steps you can take
to protect your business from the impact of bad weather
this winter…
1 PricewaterhouseCoopers – ‘Storm Desmond damage across Cumbria estimated at £500m’ by Jill Treanor, Julia Kollewe and Sean Farrell, The Guardian, 8th December 2015
2 Association of British Insurers (ABI) Press Office – news release at www.abi.org.uk, 5th November 2013
“BABY IT’S COLD OUTSIDE!” DEFROST YOUR BUSINESS RISK THIS WINTER
Take a common sense approach…
Much of winter weather risk management comes down to common
sense – but whatever your business, you need to identify the
potential risk areas and address them across the Health & Safety
responsibilities to your people plus the liability and business
continuity risks to your business. It’s a simple check list – from pipe
work, water supply, HVAC and IT to building inspection,
improving your energy efficiency and handling work from home
and emergency transport for your key people.
Your winter weather risk quick summary…
Snow, frost and ice
Access: pathways, entrances, exits, emergency exits, car parks,
exterior steps and ramps mean trips and slips. Clear snow early
in the day and use sand, salt or grit – never water.
Pipe work: check and protect exterior or interior pipes that
may otherwise burst and flood in a cold snap.
Structural: keep roof areas free from standing snow or ice that
may cause damage.
Fleet transportation: breakdowns, winter servicing and safe
and/or winter tyres will all contribute to how mobile your fleet
is – and how much it costs you - when a big chill arrives.
Car theft: in winter there’s always the temptation to leave the
car running and pop back inside while it defrosts. Remember,
most motor policies – personal or fleet - specifically exclude
theft of vehicles (and loss of possessions) where keys are left in
the car. Always stay with your vehicle when de-icing with the
engine running.
Thawing and flash floods
Location: if your business is in a high-risk area then check the
Environment Agency web site in England & Wales or the
Scottish Environment Protection Agency (SEPA) in Scotland
to check for flood warnings. You can also sign up for the
floodline support service - Floodline Warnings Direct - that
will alert you if you are in imminent risk of flooding. Call
0845 988 1188 for details. See below for more information.
It’s snow joke: your Health & Safety
responsibilities
Snow or ice on the ground means trips and slips and the potential
for civil claims if you don’t follow Health and Safety at Work
stipulations. Although most incidents are often minor, occasionally
they can be serious.
•Keep footpaths and walkways clear of ice and snow to reduce the
risk of slipping: this duty is well established both in legislation
and as a result of civil claims.
•The Health and Safety at Work Act emphasises that access to and
from places of work be kept “safe and without such risks”.
•Workplace (Health, Safety and Welfare) Regulations specifically
mentions keeping floors free from any substance that could cause
a person to slip, trip or fall, “as far as is reasonably practicable”.
•The Occupiers Liability Act requires that visitors to premises are
kept “reasonably safe for the purposes for which they are invited
or permitted to enter”.
Regardless of these legal requirements, the issue is really one of
simple good management. As an employer, you need to know
where the responsibility for clearing ice and snow begins and ends
and how far to go in terms of gritting and clearing. A good rule of
thumb is to document the risks and respond reasonably.
•Always keep sloping footpaths safe: if it’s snowy or frosty, clear it
and grit, sand or rock salt it first thing in the morning.
•Always keep emergency exits and routes clear and safe – plus keep
an eye out for any danger arising from people bringing snow into
your premises on their feet.
•Allocate responsibility for snow clearing/de-icing and check it is
being carried out – plus explore options for outsourcing such
duties to specialists who can take care of it for you.
Protecting your property – snow, drifting
& freezing
Snow damage to assets and property during cold weather - or its
wet aftermath - is another risk area that can hit your business. Roof
areas collect snow quickly and it’s the weight, not the depth of the
snow that causes damage.
• Fluffy snow weighs between 5 – 20lbs per cubic foot.3
• Packed snow weighs 0– 40lbs per cubic foot.4
•Wet snow weighs 45lbs per cubic foot5 – this is the priority so
clear it quickly. Tell-tale overload signs include: sticking doors on
higher floors, visible cracking on wall surfaces and plaster cracks
around door frames.4
•Keep guttering clear and free from obstacles – you’ll need them
when the thaw comes.
•Ensure all exterior and interior pipe work is lagged and protected
to prevent bursts and flooding.
3-5 Travelers Canada at www.thedominion.ca: The Keys to Business Risk Protection, 2013
(PDF)
“BABY IT’S COLD OUTSIDE!” DEFROST YOUR BUSINESS RISK THIS WINTER
Protecting your commercial assets – rapid
thaw & flash flooding
The practical flood protection measures you
can take right now
Storm Desmond has put flood damage high on peoples’ agendas.
Check with the Environment Agency to see if your business is
located in a flood-prone area. Sudden snowmelt in winter causes
flash flooding just as surely as sustained heavy rain in summer.
Understanding the topography of flood risk management is one
thing, but what are the practical steps you can take straight away?
Here we outline the physical actions that can help cut your
risk exposure.
• Plant and machinery: can you raise it above known flood water
levels – or even positioned on the roof?
• Sandbags: do you have storage space for ready-prepared
sandbags?
•Drainage: keep drains and gutters free of debris and other
blockages with regular maintenance.
• Obstacles: keep the roof or any terrace areas free of all vegetation
that could damage the roof and let in heavy rain or snowmelt.
•Scoping: commission a Flood Assessment Survey to set your
baseline knowledge of the risks.
• History: if your business – or the properties you manage - lie in a
high-risk area, check public records to help set your flood
expectations.
•Plant and machinery: can you raise it above known flood water
levels – or even positioned on a roof?
•Early warning: if your business is in a high-risk area then check
the Environment Agency web site in England & Wales or the
Scottish Environment Protection Agency (SEPA) in Scotland to
check for flood warnings.
•Sandbags: do you have storage space for ready-prepared
sandbags?
•Drainage: keep drains and gutters free of debris and other
blockages with regular maintenance.
•Obstacles: keep the roof or any terrace areas free of all vegetation
that could damage the roof and let in rain or snowmelt.
•Scoping: commission a Flood Assessment Survey to set your
baseline knowledge of the risks.
•History: if you’re based in a high-risk area, check public records
to help set your flood expectations. Check the flood history of
your premises.
• Water supply: check the plumbing of all equipment or
infrastructure use a water supply – from washrooms to vending
machines.
• Sprinkler systems: minimise the risk of leakage with regular,
thorough and manufacturer-approved maintenance processes.
“BABY IT’S COLD OUTSIDE!” DEFROST YOUR BUSINESS RISK THIS WINTER
Protecting your business continuity
About Arthur J. Gallagher
We’ve seen it before – traffic networks paralysed and roads blocked
when the white stuff falls. Your people can’t get into work or out to
customers, deliveries are interrupted and business suffers. With a bit
of pre-planning, you can avoid the risks to the continuity of your
business:
Founded in 1927, Arthur J. Gallagher & Co. has become one of
the largest, most successful insurance broking and risk management
companies in the world. With extraordinary reach internationally,
our parent group employs over 20,000 people and provides services
in more than 140 countries. Outside the US we are known as
Arthur J. Gallagher and wherever there is an issue of risk, we’re
there for our clients. We are a business without barriers – working
together to create solutions that drive value and competitive
advantage for our clients. Our people, our depth of technical
knowledge and our global reach will deliver unrivalled advice
and coverage expertise.
•Use mobile comms and the web to keep your business
operating: can’t meet face-to-face? Explore videoconferencing.
Ubiquitous broadband, personal smartphones, tablets and free
web services like Skype, Viber or FaceTime will help keep you
and your people in touch at minimal cost.
• Identify your business-critical activities: ‘business as usual’ may
not be possible so be ready to concentrate on those ‘must do’
processes and ‘must-have’ people.
•Car sharing: it sounds simple but work out who can ‘buddy-up’;
you’ll have more people in, more of the time. Find out who drives
a 4x4 and use as many as possible for car sharing. Alternatively
lay on minibus transport if practicable.
• Work from home: it’s back to the technology. When everything
grinds to a halt, ensure you know who can work from home and
let them get on with it.
•Work with your suppliers: if your supply chain is under threat,
plan in advance. Discuss alternative options with your suppliers
and/or customers so you can switch quickly and easily to Plan B.
WOULD YOU LIKE TO TALK?
For more information call us on
T: 0800 612 2278
E: [email protected]
www.ajginternational.com
This bulletin is not intended to give legal or financial advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or
market practice in this area. In preparing this bulletin we have relied on information sourced from third parties and we make no claims as to the completeness or accuracy of the
information contained. You should not act upon (or should refrain from acting upon) information in this bulletin without first seeking specific legal and/or specialist advice. Arthur J.
Gallagher Insurance Brokers Limited accepts no liability for any inaccuracy, omission or mistake in this bulletin, nor will we be responsible for any loss which may be suffered as a
result of any person relying on the information contained herein.
Arthur J. Gallagher Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Building, 7th Floor, 55, Blythswood Street,
Glasgow, G2 7AT. Registered in Scotland. Company Number: SC108909.
FP905-2015