Automatic Sprinkler Systems   

Sprinkler systems are designed to control fires until the fire department arrives. It is common for these systems to extinguish a fire. A central station water flow alarm also helps assure that the fire department will arrive promptly.

Types of Systems 

Wet Pipe System: This system’s simplicity makes it the most reliable type of sprinkler system available.
• The pipes contain water at all times, and the sprinkler heads are closed.
• A heat-sensitive element in a head causes it to open and discharge water on the fire either
  extinguishing it or keeping it from spreading too quickly before the fire department arrives to
  extinguish it. 
• If freezing is a possibility, the buildings should be kept heated during the winter months due
  to the potential of pipes bursting.

Dry Pipe System: This system is more complicated than wet-pipe systems, less reliable, more difficult to maintain, and more expensive to install.
• This system is used as an alternative to wet pipe systems for unheated buildings in colder
  climates or in cold buildings such as cold storage warehouses.
• The system has air or nitrogen gas in the pipes. Heat from a fire causes a sprinkler head to
  open, which allows the air or nitrogen to discharge as the water fills the pipe and then
  discharges on the fire through the open heads. Because the water is delayed in reaching
  the fire, resulting fire damage is typically greater than with a wet pipe system. 
• After activation, the system needs to be drained and reset.

Pre-action Systems: This dual action system is designed for properties that are highly susceptible to water damage, such as libraries, art galleries, and computer rooms. 
• Two things must happen before water discharges. First, a fire detection system detects a
  fire, sounds an alarm, and opens a valve that allows water to flow into the sprinkler piping.
  Heat from the fire then causes a sprinkler head to open, discharging water on the fire. This
  two-step operation reduces the possibility of accidental water discharge that might result
  from damage to sprinkler piping or a sprinkler head.

Deluge System: The only type of sprinkler system designed with open sprinkler heads, this system is used in extra hazardous facilities, such as aircraft hangers, electrical transformers, and high volume flammable liquid or gas storage farms where large volumes of water must be discharged on a fire quickly to prevent a fire from spreading.
• All sprinkler heads in the system are open.
• A smoke or heat detection system detects a fire, opens a valve and water fills the sprinkler
  piping, discharging from all sprinkler heads. 
• The valve must be reset after activation. These systems are complex and expensive to
  install and maintain. 

The sprinklers only deliver water to the area that has the fire in all the systems except the deluge system. The deluge system delivers water to the entire facility regardless of the location of the fire. 

What should you do as the property owner?

1. Have a licensed sprinkler contractor evaluate the automatic sprinkler system to be sure it
    is suitable for the hazards that exist in your business. Sprinkler system designs are
    based on hazards of occupancy and fire loading related to types and configurations of
    storage. If conditions change you need to know that the system is capable of handling a
    problem.
2. Have water flow and valve closure supervised and monitored by a central station.
3. Have testing and inspection of your automatic sprinkler system performed by a competent
    sprinkler service company, at least on a semi-annual basis, to insure it stays in good
    operating condition to include at least:
      - A main drain flow test with record of static and residual pressure to be sure there are no
        significant obstructions to water supply such as closed valves for blockage in the water
        main.
      - An alarm test to be sure that operation of one sprinkler head is sufficient to operate the
        local water flow and valve closure.
      - An overall inspection of system condition including, piping, valves, hangers, fire
        department connections, and sprinkler heads etc. to be sure system is in good general
        operation condition.
4. Ensure that the clearance from all sprinkler heads to any stock is at least 18 inches in
    order for the system to be effective.
5. Maintain a spare supply of at least six sprinkler heads on the premises, with never less
    than one of each type used in the system. This ensures that any heads that have
    operated improperly or have been damaged can be promptly replaced. They should be
    maintained in a cabinet in a readily accessible location where the temperature they are
    subjected to never exceeds 100 degrees Fahrenheit.

Portable Fire Extinguishers 

The proper selection and placement of portable fire extinguishers can be crucial to protecting your business from a substantial fire loss.

There are five classifications of fire extinguishers and each is designed for a specific type of fire. The extinguisher types and the fires they suppress are:
Class “A” - fires in ordinary combustible materials (i.e. wood, paper, cloth, rubber, and many
                  plastics)
Class “B” - fires in flammable liquids, oils, greases, tars, oil base paints, lacquers, and
                  flammable gases 
Class “C” - fires that involve energized electrical equipment
Class “D” - fires in combustible metals (i.e. magnesium, lithium, sodium, titanium, etc.)
Class “K” - fires in cooking media (i.e. cooking oils and fats)

Using Portable Fire Extinguishers

When training employees in the use of fire extinguishers, the most important point to emphasize is to report the fire immediately. Calling the local fire department is more important than starting to put out the fire.

During training your employees will be taught how to help control small fires. A key part of this training will be the acronym PASS, which describes how to use a fire extinguisher:
Pull the locking pin that keeps the trigger from accidentally being activated.
Approach to within six to eight feet of the fire and aim the nozzle at the base of the fire, not
at the flames.
Squeeze the trigger to dispense the extinguishing agent.
Sweep the extinguishing agent back and forth across the base of the fire, trying to cover as much of the fire area as possible. 

Your fire extinguisher service company or your local fire department may be able to assist you with a fire extinguisher training program for your employees.

Covering Business Income and Extra Expense Losses 

A company can suffer a loss directly and indirectly as a result a covered cause of loss. Business Income and Extra Expense insurance is intended to cover these types of losses.

Business Income

A business income loss is the loss of net income before taxes that occurs during the period of restoration - in addition to continuing expenses that don’t disappear just because the loss occurred. 
Net Income = Revenue - Expenses
Business Income Loss = Lost Net Income + Continuing Expenses

Items that may affect the amount of the business income loss include:
• Time to repair the premises and become operational 
• Potential bottlenecks in those operations that are shut down because of the loss
• Availability and length of time to replace needed equipment or supplies
• Dependency on one supplier that has suffered a covered loss
• Dependency on one buyer that has suffered a covered loss
• Availability of alternate locations to operate
• Availability to use others to maintain the business operations (i.e. sub contract the
  operations to maintain the customers)

Extra Expense

A business can suffer additional expenses as a result of a covered loss. Extra expense coverage is intended to cover these additional expenses. Examples include:
• Rent paid at a temporary location while the main location is being repaired
• Light, power, and heat at temporary premises
• Labor costs to set up your temporary premises
• Insurance expenses at temporary premises
• Expense of moving equipment

This coverage is for the necessary expenses that you incur during the period of restoration that would not have incurred if there had been no direct physical loss or damage to property.

If you have any questions about this coverage, you should contact your agent.

General Building Condition 

Good housekeeping and maintenance is essential to preventing personal and property loss. It is important that company policies establish specific guidelines to help identify and correct hazards that could lead to a loss. It is the responsibility of all employees, including management, to actively support the procedures and be part of the commitment to create and maintain a safe workplace. 

Plumbing, electrical, heating, ventilation and air conditioning systems are critical components to every building. The following information may help you keep these systems running efficiently and effectively.

Plumbing

Measures to reduce the possibility of water damage to your facility:
• Hire only licensed and insured plumbers for service.
• Evaluate the plumbing system regularly.
• Erect a barrier to keep vehicles, forklifts, and other moving equipment from striking or
  damaging the water or sewer systems.
• Protect pipes from freezing.
• Keep drain gates unclogged.
• Service the sanitary sewer as soon as the drainage becomes slow.
• Check all storm drains for blockage after rain and clear them.
• Prohibit heavy equipment from driving over or from idling in areas where pipes are buried.

Electrical 

Nationwide fire investigation data show that most business fires occur due to an electrical problem. They usually result from defective electrical wiring in the walls and ceiling or from energized equipment.
Best practices to follow to reduce electrical hazards: 
• Establish a company policy that restricts the number and type of personal appliances that
  are permitted in the workplace. 
• Prohibit use of non-UL-listed and poorly maintained appliances, such as radios, lamps,
  ventilation fans, space heaters, coffee makers, etc.
• Inspect personal appliances initially when an employee brings them into the workplace and
  during regular inspections.
• Require that appliances be unplugged at the end of the workday.
• Provide extra precaution with regard to the use of portable space heaters.
• Replace any flickering or failing lamps on overhead fluorescent light fixtures as soon as
  possible.
• Keep combustible material away from fluorescent fixtures, especially in attics, mezzanines,
  and where files are stored.
• Use only Underwriters’ Laboratories (UL) listed extension cords.
• Remove any damaged cords from service.
• Do not run cords under carpeting or rugs.
• Avoid putting cords in pinch-points (i.e. between the door and the door frame, around tight
  corners, knots in the cord, etc.)
• Do not allow cords to be in or across any aisles. Keep cords out of the water.
• Only use cords that have the additional ground wire included.
• Provide sufficient electrical outlets to reduce the need for extension cords.
• Inspect electrical cords, plugs, etc., frequently, especially in remote areas.
• Use plugs with lock-type connections for machines and equipment, which need to be
  occasionally disconnected.
• Use only approved electrical parts.
• Have qualified electricians perform all electrical work.

Heating, Ventilation, and Air Conditioning Systems (HVAC)

HVAC systems are often overlooked when it comes to preventive maintenance as long as they are properly conditioning the air to make the occupants comfortable. The following are risk control measures to help you reduce the business exposure to property damage:
• Maintain a contract with a licensed and insured HVAC contractor to service your equipment
  at least twice per year.
• If you have your own maintenance staff service your HVAC system, be sure that they have
  been trained for the make and model of your equipment. 
• Inspect bearings, pulleys, and belts for signs of wear and overheating.
• Lubricate rotating parts as required.
• Keep the area around the equipment clean.
• Inspect the fresh air intake duct to be sure it is unobstructed.
• Prohibit storage and trash in the mechanical or equipment room.
• Clean or replace air filters regularly.

Building Maintenance and Housekeeping Self-Inspection Checklist

Specific Property Exposures 

There are some extraordinary property exposures that deserve additional attention in this 
manual:
1. Windstorm
2. Commercial Cooking
3. Flammable Liquids and Combustible Gases
4. Spray Painting and Finishing
5. Cutting and Welding

Windstorm 

Windstorms are responsible of billions of dollars in property damage. Weather related perils cannot be prevented. However, the amount of destruction can be reduced with an effective emergency preparedness plan.

• To minimize wind damage you must protect the integrity of the building’s exterior also
  referred to as “the envelope.” To do this, utilize the following risk control measures: 
      - Install storm/hurricane shutters.
      - Replace ordinary glass with laminated, impact resistant glass. 
      - Cover windows with plywood.
      - Install film coatings specifically designed for improving impact resistance. 
      - When replacing roofs, upgrade to wind resistive roof coverings.
      - Minimize sources of wind borne debris and flying missiles by bringing outdoor items
        inside the building.
      - Prune trees by removing loose limbs before the storm season.
      - Avoid planting trees close to buildings.
• Have a licensed professional evaluate the building roof, gutters, and drains.
      - Buildings that have a flat roof and/or a parapet (i.e. wall that extends above the roof
        level) are particularly vulnerable to roof collapse due to accumulated water. 
      - Rising water from a blocked roof storm drain presents another problem. Inspections for
        this condition may need to be increased when the leaves are falling from trees.
• Move the contents in the building away from the exterior walls and into a more central
  secured area of the building. Keep stock, supplies, and other materials off the floor. Store
  them on shelves or pallets.
• Businesses with perishable items should:
      - Make provisions for an alternative power source.
      - Rent a portable power generator.
      - Lease a refrigerated semi-truck trailer.
      - Arrange with another company to temporarily store perishable products.

Commercial Cooking 

To reduce the potential for fire and to control one if it occurs:
• Conduct all commercial cooking under a professionally installed exhaust hood and duct.
• Check with your automatic fire extinguishing system installer or service company to confirm
  that:
      - Your deep fat fryer is equipped with an excess temperature limit to help ensure that the
        oil does not overheat and ignite.
      - Upon activation of any fire extinguishing system, all sources of fuel and power
        connected to any protected equipment are automatically shut off.
• Educate all kitchen staff where the manual pull control is located and how to activate it. 
• Maintain a clear path to the manual pull control.
• Have your commercial cooking equipment and extinguishing system serviced by a fire
  protection equipment service company. The following is a minimum cleaning schedule for
  hood cleaning:
      - Semi-annually for limited grease vapor production.
      - Quarterly for moderate production of grease-laden vapors.
      - Every two months for solid fuel type cooking or cooking that results in heavy production
        of grease laden vapors
• Clean grease filters frequently, daily if necessary, to prevent build up of surface grease.
• Maintain a Class K, UL listed fire extinguisher.

For a more comprehensive presentation of installation and protection requirements for commercial cooking equipment refer to:
• NFPA 96* “Standard for the Installation of Equipment for the Removal of Smoke and Grease
  Laden Vapors from Commercial Cooking Equipment.” 
• Underwriter Laboratories standard “UL 300, Fire Testing of Fire Extinguishing Systems for
  Protection of Restaurant Cooking areas.” 

Flammable Liquids and Combustible Gases 

A flammable liquid is any liquid that gives off a vapor in sufficient concentration to ignite below 100 degrees Fahrenheit. Combustible gases can be ignited in the presence of air to cause a fire or explosion. Proper storage and handling techniques are the keys to preventing losses. 
• Know how to identify a flammable liquid by: 
  Looking at the labels on the outside of the container that provides information on
  flammability and reviewing the Material Safety Data Sheet (MSDS) for all chemicals you
  use or store. The MSDS also provide precautions for safe handling, storage, and use of the
  chemical.
• Follow these basic requirements for safe storage and handling of flammable liquids:
      - No more than one day’s supply should be kept outside a flammable liquids storage
        cabinet or storage room.
      - If you have up to 25 gallons of flammable liquids, it may be kept in Underwriters
        Laboratories (UL) listed safety cans.
      - If you have from 25 to 180 gallons of flammable liquids, it should be kept in UL listed
        flammable liquids storage cabinets.
      - No more than 60 gallons of flammable liquids should be kept in a single flammable
        liquids storage cabinet.
      - No more than three cabinets (180 gallons) of flammable liquids should be kept in a
       single building or fire area. 
      - If you have over 180 gallons of flammable liquids, it should be stored in a Flammable
        Liquids Storage Room. 
• Proper control of combustible gases requires that you: 
      - Identify combustible gases
      - Prevent sources of ignition from coming in contact with the combustible gases 
      - Provide adequate ventilation
      - Store combustible gas tanks or cylinders in areas where they cannot be struck by
        mechanized equipment or hand trucks
      - Secure compressed gas cylinders and place them in an upright position
      - Store oxygen separate from acetylene and petroleum products
      - Do not store cylinders in a basement or below grade
• Special precautions must be followed for safe operation of forklifts that use LP gas for their
  source of fuel. This is a special hazard because the gas vaporizes rapidly when it escapes. 

To assist with training, further details can be found in:
• NFPA 30* 
• Compressed Gas Association
• Powered Industrial Truck Operator Training Program 
• NFPA 505*

*You can order from the NFPA website or contact your Loss Control Representative for other
  options.

Spray Painting and Finishing 

Spray painting and finishing operations pose high risk of fire and explosion because of the easily ignitable flammable liquid aerosols used in these operations. By implementing the following risk control measures, this exposure can be reduced.

Ventilation

• Have a licensed contractor install a mechanical ventilation system in your spray booth.
• Spray only when ventilation system is working.
• Have the ventilation system inspected quarterly by a licensed heating, ventilation and air
  conditioning contractor.

Filters

• Only use the appropriate filters, baffles, or water curtain
• Change filters on a regular basis as described by the system’s manufacturer

Electrical

• Use only UL Listed “Explosion Proof” electrical equipment in the spraying and finishing
  areas.
• Do not use light fixtures within the spray booth.
• Install electrical interlocks on the ventilation system, which are controlled by a solenoid
  valve. These should prevent spraying to be done unless the ventilation system is running.

Fire Protection

• Install automatic sprinklers in front and behind filters.
• Install sprinkler heads in ducts that pass through combustible roofs.
• Prohibit all sources of ignition in the building if spray painting is performed.
• Post and enforce “NO SMOKING” signs throughout the facility.

Housekeeping

• Clean the spray booth, ductwork, sprinklers and other associated apparatus daily.
• Do not keep more than one day’s supply or paints and thinners in the immediate area.
• Do not store combustible materials within 20 feet of the spraying area.
• Store all unused material in appropriate storage containers and areas at the end of each
  day.

Preventative Maintenance

• Keep the sprinkler heads clean and protected with clear lightweight plastic bags having a
  thickness of 0.003” or less.
• Change bags frequently to avoid excess buildup of paint.
• Prohibit any spraying outside of the booth.
• Check the airflow in the booth daily to make sure it is functioning.

Cutting and Welding 

Torch cutting, welding, brazing, and soldering are techniques for melting or joining metals. These processes are hazardous by nature because fire is used as a tool. Methods to contain the work piece and equipment are crucial to reducing the risk of fire spreading and causing damage to your property.

To help you protect your business, property, and people, you and your staff should: 
• Become familiar with the specific hazards and exposures associated with the type(s) of
  welding and cutting you perform.
• Inspect the work area to ensure that there are no openings in walls or floors.
• Provide appropriate training and good supervision, installing welding screens around the
  work area.
• Establish and utilize a Hot Work Permit System.
• Install local exhaust ventilation systems at the point of operation.
• Require that appropriate personal protective equipment is worn including: leather vests,
  armlets, flame resistant gloves, cuff-less trousers, welding helmets, and proper eye
  protection.
• Keep flammable liquids and combustible materials out of the work area.
• Refrain from cutting and welding on tanks and containment vessels without following special
  precautions to ensure that the item is safe to work with.
• Keep the appropriate type of portable fire extinguishers charged, operable and readily
  available. 
• Familiarize outside contractors with your premises and contents if they engage in cutting
  and welding.
• Perform a final check of the work area for fires 30 minutes after completing of operations.

For more information on property risk control techniques, check with your FCCI Loss Control Representative and look in the Property section of the Blueprint for Safety Online Risk Control Manual.

This manual is advisory only and does not attempt to list all potential hazards or identify all possible remedial actions. You are responsible for the safety of your premises, operations, and products. FCCI Insurance Group and its affiliates and subsidiaries shall not be liable for any loss, injury, death, damage, or expense arising from the use of this manual.