Boiler and Hot Water Heater Inspections

Inside this issue:

Are You Ready for a Winter Storm?

3

Preventing Weather-Related Slips, Trips & Falls

4

Interior & Exterior Snow & Ice Plans

4

Cyber Liability—Should we consider this coverage?

5

Gone “Phishing”—Cyber Risk Management

6

Boiler and hot water heater malfunctions can result in claims amounting to millions of dollars, not to mention the risk of injury to anyone nearby when the incident occurs. When these systems are not properly maintained, failure of the system can result in fire, explosion, frozen pipes, water damage or worse. Basic maintenance and a qualified service provider help to ensure uninterrupted service and safety. Boilers The leading cause of boiler failures is low water. Trouble often starts with a leak, which could appear as a damp spot or small puddle on the floor. If the boiler/water heater safety devices are working properly, a small leak will cause problems over time which will require repair. If the safety devices are not working properly, serious problems are imminent because low water in a boiler/water heater is like an engine without oil. A system failure is only a matter of time. The results of boiler/water heater failures are costly repairs, replacement, and possible new construction if an old building must be adapted to accommodate new equipment. To keep your systems running smoothly and safely, consider the following strategic maintenance tips. Contact a competent service firm to

disassemble the low water cutoff (LWCO) and make-up water feeding devices. All parts should be thoroughly cleaned and reconditioned as required, then tested before the boiler or water heater is put into regular service. While in service, the LWCO should be tested once a month for hot water boilers. Hot water heaters should be drained twice a year.

Burner equipment should be cleaned and adjusted to provide maximum efficiency. This can save fuel dollars throughout the life of the equipment.

The boiler heating surfaces, firebox, ash

pit, casing and ducts should be cleaned of all deposits. Dirty internal surfaces not only waste fuel and dollars, but also can lead to the burning, bulging, cracking, corrosion and even explosion of the boiler.

The safety and safety relief valve should

be tested for freedom of operation. This is of primary importance. The boiler or water heater must not be fired if the safety and safety relief valves are inoperative or otherwise defective. These valves should be tested once a month while in service.

All pressure and temperature controls

and gages should be checked for satisfactory operation and adjusted or replaced as necessary.

Prepared by Gallagher Bassett Services, Inc. Fall 2018

Bishops’ Plan Insurance Company

Safety and Loss Control News

About BPIC Bishops’ Plan Insurance Company (BPIC) is a nonprofit group reinsurance company established in 2003 to serve the risk management needs of Dioceses across the United States. The Company currently is comprised of 31 members. BPIC offers a customizable program that allows each diocese to select their own program structure. BPIC is led by its Board of Directors along with the input of its Episcopal Moderator. BPIC offers a member’s only website comprised of risk management information. Contact information is provided below if you would like more information about BPIC or the website.

Phone Toll-Free: 877.325.BPIC (2742)

Email

info@bpicmembers.org

Website www.bpicmembers.org

If you have a gas or oil-fired water heater, you should have the unit professionally serviced at the same time your heating system is serviced.

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Page 2 Bishops’ Plan Insurance Company

Boiler and Hot Water Heater Inspections tank. This reduces the unit’s efficiency and can cause serious damage. Unusual noises from the tank such as “whistling and sizzling” or “rumbling and cracking” can be a sign of sediment buildup. A drain valve near the bottom of the water heater can be used to prevent sediment accumulation. Once a month, place a bucket under the valve and drain water and sediment from the bottom of the tank (5 gallons or so) until the water runs clear. You should also inspect the water heater once every 6 months. During the inspection, check to see whether there are any signs that water has leaked or been discharged from the temperature-pressure relief valve. If so, call a plumber immediately. The relief valve may be faulty or there may be a problem with the water heater. Test the relief valve by lifting or pressing down on its handle. Water should flow through the valve and down the discharge pipe. If water does not flow through the valve or if water continues to drip from the valve after the handle is released, call a plumber immediately to replace the defective valve. Inspect the cold water supply pipe, the hot water outlet pipe, the water heater’s metal housing and along the unit’s base for rust, corrosion and signs of leaks. If you find a moist area, wipe it with a towel to determine whether the moisture is from a leak or from condensation. Repair all leaks or have the tank replaced if necessary. If you have a gas or oil-fired water heater, you should have the unit professionally serviced at the same time your heating system is serviced. The service person should inspect and test the temperature and pressure relief valve, drain sediment from the tank, inspect the flue assembly and clean and adjust the burner ports. It is important to complete a regular self inspection of the area where the boiler or water heater is located. It is even more important to have an inspection plan for when the building is vacant or unoccupied for any length of time. More often than not, problems arise in this type of situation and nobody is aware of a problem until there is property damage. Should you have an incident with your boiler or water heater, it is imperative you report the claim immediately. If you are unsure of whom to contact for cleanup and repair, ask when reporting the claim. It is also beneficial to maintain a folder of documentation and invoices. By maintaining this information, it will be accessible to you and available should the claim adjuster request additional information.

The water level gage glass must be cleaned to indicate that water is at the proper level at all times.

The entire heating system should be inspected for leaking

pipes or fittings. Deficient parts should be repaired or replaced to prevent a loss of water.

Water lines exposed to freezing temperatures should be

insulated to prevent freeze-up. Steam and condensate return lines should be insulated to prevent unnecessary heat loss. This action will reduce fuel bills and eventually more than pay for itself.

All mechanical equipment, such as fans and pumps, should

be checked for smooth operation and proper lubrication. A suitable record of boiler operation should be established

and maintained throughout the season. The boiler room should be kept dry and clean. Storage

should not be placed in the boiler room. These tips should prove helpful in prolonging the life of your boiler or water heater, as well as provide a safe environment. Keep in mind however that even though you follow a preventive maintenance routine, unexpected problems could still occur. Check your insurance policy to see if you have boiler insurance. If you do not, consider adding this coverage. It is a small premium to pay considering the cost of a problem. Water Heaters Most workplaces and homes have domestic hot water that is heated by electric, gas or oil water heaters. As a hot water faucet is opened, heated water is drawn from the top of the water heater’s tank. The heated water is replaced by cold water that flows into the bottom of the tank. When the water temperature drops below a pre-set minimum, a thermostat activates electric heating elements or a gas or oil burner. A temperature-pressure relief valve guards against excessive temperatures and pressures. This safety valve should be located near the top of the tank. A discharge pipe should be attached to the relief valve and run down the side of the tank to just above the floor. This discharge pipe prevents burns and other damage from discharged water. There must be no valves, caps or other obstructions preventing discharged water from draining rapidly. If the temperature-pressure relief valve ever discharges steam or boiling water, shut off the water heater and call a plumber immediately. Sediment can accumulate at the bottom of the water heater’s

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Safety and Loss Control News Page 3

exposed skin. As the wind increases, heat is carried

away from a person’s body at an accelerated rate,

driving down the body temperature.

Walk carefully on snowy, icy sidewalks.

After the storm, if you shovel snow, be extremely

careful. It is physically strenuous work, so take frequent

breaks. Avoid overexertion.

Avoid traveling by car in a storm, but if you must:

Have emergency supplies in the trunk.

Keep your car’s gas tank full for emergency use and to

keep the fuel line from freezing.

Let someone know your destination, your route, and

when you expect to arrive. If your car gets stuck along

the way, help can be sent along your predetermined

route.

If you do get stuck:

Stay with your car. Do not try to walk to safety.

Tie a brightly colored cloth (preferably red) to the

antenna for rescuers to see.

Start the car and use the heater for about 10 minutes

every hour. Keep the exhaust pipe clear so fumes won’t

back up into the car.

Leave the overhead light on when the engine is running

so that you can be seen.

As you sit, keep moving your arms and legs to keep

blood circulating and to stay warm.

Keep one window away from the blowing wind slightly

open to let in air.

-Excerpted from the National Oceanic and Atmospheric Administration.

Are You Ready for a Winter Storm? Here’s what you can do to prepare for this type of emergency:

Prepare a winter storm plan:

Have extra blankets on hand.

Ensure that each member of your household has a

warm coat, gloves, or mittens, hat, and water-resistant

boots.

Assemble a disaster supplies kit containing:

First aid kit and essential medications

Battery-powered NOAA Weather Radio and

portable radio, flashlight, and extra batteries

Canned food and non-electric can opener

Bottled water

Have your car winterized before the winter storm

season.

Assemble a disaster supplies kit for your car (see list

below).

Stay tuned for storm warnings:

Listen to NOAA Weather Radio and your local radio and

TV stations for updated storm information.

Know what winter storm WATCHES and WARNINGS

mean:

A winter storm WATCH means a winter storm is

possible in your area.

A winter storm WARNING means a winter storm is

headed for your area.

A blizzard WARNING means strong winds, blind

wind-driven snow, and dangerous wind chill are

expected. Seek shelter immediately!

When a winter storm WATCH is issued:

Listen to NOAA Weather Radio, local radio and TV

stations, or cable TV such as The Weather Channel for

further updates.

Be alert to changing weather conditions.

Avoid unnecessary travel.

When a winter storm WARNING is issued:

Stay indoors during the storm.

If you must go outside, several layers of lightweight

clothing will keep you warmer than a single heavy coat.

Gloves (or mittens) and a hat will prevent loss of body

heat. Cover your mouth to protect your lungs.

Understand the hazards of wind chill, which combines

the cooling effect of wind and cold temperatures on

Page 4 Bishops’ Plan Insurance Company

Preventing Weather-Related Slips, Trips and Falls The winter weather months bring a variety of hazards to the surfaces that we walk along on a daily basis. Ice, snow, slush and rain all contribute to slippery streets, parking lots, sidewalks, and interior floors. An awareness of these hazards and knowing how to prevent accidents associated with these hazards will help you to stay safe during the winter months. The Hazards Ice, snow, rain or mud on parking

lots, sidewalks, driveways and steps. Shoes with little friction such as high

heels or smooth soles. Sun glare on wet or icy surfaces. Carrying large, awkward loads on

slippery surfaces.

Prevention Methods Wear slip-resistant shoes or

overshoes. Keep shoe soles clean (free of oil,

mud and ice). Keep your vision clear (wear

sunglasses outside if it is bright). Keep one hand free so that you have

balance. Walk slowly on wet or icy surfaces. Use salt or sand on snow or ice-

covered sidewalks, driveways and parking lots.

Use mats or rugs near doors to dry your shoes.

Report “hazardous areas” immediately.

Don’t take chances or short-cuts.

Sample Snow and Ice Plan— Building Exterior Log

Sample Snow and Ice Plan— Interior Entrance Areas

Cyber Liability—Should we consider this coverage?

Frequency of Privacy Breaches is on the rise and the threats and vulnerabilities are getting dramatically worse. According to the FBI, Identity Theft is the fastest growing white collar crime in America. Because of this, over 45 states have enacted Privacy Laws, which dictate what must occur in the event of a privacy breach. What’s at risk? Medical information, financial information, personally identifiable information and peace of mind. Many of us have heard about Cyber Liability and asked ourselves, is this something I should consider? In understanding this coverage, it is important to understand what Cyber Liability is all about, and how it can affect your operations. The majority of churches today have exposure to cyber liability in the form of network security liability and more specifically, privacy liability. They operate systems, interact with vendors, issue employee payroll and track employee benefits. Additionally, most religious organizations now provide tithing online, creating new exposures, not previously considered. The challenges associated with cyber losses are many. From an IT perspective, the department is faced with the challenge of balancing the demands of safeguarding the network and information while adapting to ever-changing technologies. From an employee perspective, they are faced with the challenge of balancing work flow needs with safeguarding the confidential information used to perform their job. In addition, all parishes are managing the strains of the economy, and being asked to do more with less. Traditional risk management is structured around protecting tangible property from physical perils. In the cyber world, the physical or tangible world is transformed into non-physical or non-tangible. This is in the form of data and information that is neither physical or tangible. Protecting intangible property against intangible perils is becoming a critical element of a risk management program. Traditional insurance policies have significant gaps in coverage for digital exposures. More challenging yet, traditional policies are being issued with broad exclusions of coverage. Because of this gap, a new generation of “Cyber” policies is being developed. A Cyber policy should cover:

Website/Media Liability

Network Security—covers any liability arising out of the failure of network security, including:

Failure to prevent unauthorized access/use (hackers, rogue employees)

Failure to prevent introduction of malicious code

Failure to prevent denial of service attack

Identity theft

Privacy Liability (Identity/Theft/Regulatory Actions) - covers loss arising out of the failure to protect sensitive personal or corporate information in any format.

Notification/credit monitoring coverage—covers expenses to notify customers whose sensitive personal information has been breached.

First-party data

Business interruption

Cyber extortion

Crisis management—covers extortion monies and associated expenses arising out of a criminal threat to release sensitive information or bring down a network unless consideration is made.

Professional services Errors and Omissions

Internet Media Liability—covers infringement of copyright or trademark, invasion of privacy, libel, slander, plagiarism, or negligence by the parish from the content on its internet website.

In the event you have a security/privacy breach, there will be a financial loss.

Cost to defend and/or settle litigation from the congregation or employees for Identity Theft

Cost to defend and/or settle litigation from banks to recover the value of re-issuing credit cards or fraudulent transactions

Cost to defend and/or settle regulatory investigations and litigation

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The information in this report, provided by Gallagher Bassett Services, Inc., was obtained from sources which to the best of the writer’s knowledge are authentic and reliable. Gallagher Bassett Services, Inc. makes no guarantee of results, and assumes no liability in connection with either the information herein contained, or the safety suggestions herein made. Moreover, it cannot be assumed that every acceptable safety procedure is contained herein, or that abnormal or unusual circumstances may not warrant or require further or additional procedures.

Cyber Liability

Cost to respond to regulatory laws

Cost to defend and/or settle unauthorized access or unauthorized use

Cost to defend and/or settle allegations that malicious code (such as viruses) caused harm to the data or computer system of third parties

Cost to defend and/or settle allegations that an insured’s computer system denied a third party the ability to conduct transactions.

Studies show that negligence accounts for 40% of security and privacy breaches, followed by system glitches at 36% and malicious or criminal attack at 24%. The event and response to the event can prove costly. You will have attorney fees that include investigation, notification, guidance and defense/e-discovery. You will face indemnity payments, notification costs, card re-issuance, credit monitoring, call center support and a public relations campaign as a result of a breach. In thinking ahead about your current internal policies and procedures, you should be sure you develop risk mitigation efforts to protect your parish and congregation. Be sure to have a classification of data, effective privacy policy, effective privacy breach response program, employee training, regular testing of your Disaster Recovery Plan and Business Continuity Plan, and review of your service provider’s controls and policies. You should proactively assess controls surrounding: People - dedicated info security personnel, complete a background check, and be sure you have a proper security budget. Processes - enforce policies, provide constant employee education and training, enlist in a change management process. Technology - manage firewall with IDS/IPS, hardened and patched servers, strong passwords, event logging, anti-virus software, encrypted data for transmission and storage, port scanning, daily backup and redundancy/hot-site. Please remember, you cannot have privacy with out solid info security!

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Gone “Phishing”—Cyber Risk Management Have you ever received a spam or pop-up message stating: “We could not verify your information during a routine review of active accounts, please click here to update your information.” The scam artists are trying to hook you into entering your Social Security Number, passwords, or account numbers. The pop-up will appear to be from an agency or establishment you are familiar with or have accounts with. Here are some tips on what to look for: Some of the phishing messages or e-mails will threaten you

with severe consequences if you do not respond by “updating, verifying, or confirming” what they are asking of you.

DO NOT reply to any e-mails or pop-ups of this nature. DO NOT click on the message in the link. DO NOT cut and paste the website to a new browser. DO open a new browser and type the company’s e-

mail address that you know to be legitimate. This will eliminate any phony look-alike links that phishers use.

If you receive an e-mail that states you are entitled to a

refund and need to call them for details, verify that the number given is a phone number listed on your account paperwork, at home or on your business account. Check the back of credit cards for main contact numbers. Phishers will provide you with an area code and number that is very close to what your company actually uses, in order to fool you.

If possible, use anti-virus, anti-spy ware, and firewall

software, and keep them updated each year with the current versions. Some phishing e-mails contain software that can damage your computer or monitor during your internet use, without your knowledge. Don’t ever e-mail personal or financial information. Use secure websites that YOU initiate contact with. Secure websites may be indicated by a small padlock icon on your browser’s status bar.

Remember to review your bank and credit card statements

as soon as possible. Be aware of your billing cycles, so you know if a statement is late. Always be leery of opening any attachments or downloads, as viruses may breach your computer’s security system.

If you think you have been scammed, contact the Federal Trade Commission at www.ftc.gov. Don’t let “phishers” hook you in!