Cargo Loss Prevention Committee

Warehouse Security Presentation

ForFor

Marine Insurance Day 2011

Friday, September 30, 2011

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Moderator: Peter J. Scrobe, CLPC Chairman

Panel: Noreen Graham, Program ChairStephen FeronMartin West*Martin West*Kevin M. Meller*Paula A. Brewer*

* Members of the program unable to attend

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Warehouse thefts comprise 4% to 5% of allcargo thefts annually

Average warehouse theft is valued at$3,800,000

Average bank robbery nets $10,000Average bank robbery nets $10,000“shrinkage” – sounds better than theft – Keep

people out of areas they don’t belong

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3/14/10 and 8/2/09 respectively“Mission Impossible” style raidStayed for hoursUtilized warehouse’s own equipment

Lessons Learned? Or non-compliance withindustry best practices

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Extensive Research / Surveillance & CounterSurveillance

Distant locations / Economy motelsAvoids violenceWorks around technologyWorks around technologyRadios / prepaid cell phonesExit Strategy

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Proper and working alarm systemRedundant / back up alarm systemSecurity cage / vault for high valueTheft prone items stored high on racksTheft prone items stored high on racksAll entrances, exits and vulnerable areas

protected by surveillance cameras◦PTZ (Pan, Tilt, Zoom)◦MONITORED – constant supervision

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Security guards – 24/7Motion detectors◦Don’t forget above

Yard jockeys / forklifts locked, disabled◦Don’t leave the keys in them or on a display board

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Chain link Fence◦At least 8’ high◦4” of free space under a fence can allow access◦Away from truck parking, dumpsters etc

IlluminatedGuard railsGuard rails

Raised barriers / bollards

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Vetting of third party maintenance /cleaning staff

DOT License checks on drivers beforereleasing a load

All pick ups and deliveries by appointmentAll pick ups and deliveries by appointmentonly

Again keep people who don’t belong thereaway from the stock – drivers, employees,contractors

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Shipping documentation to be keptconfidential◦Should NOT be in a location where the casual

passer by can determine contents of a particulartrailer or container

Employee background checksSITE ASSESSMENTS

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Warehouse management should have arapport with fire and police

Restroom, coffee lounge for paperwork whileon patrolon patrol

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Augustus Pope 1853◦Open circuit. Shutting the door or window silenced

the bellLocal alarmPolice station connectionPolice station connectionCentral Station

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to detect the entry or attempted entry of anintruder into a protected facility and signalhis presence to others nearby or at a remotelocation, thus initiating certain proceduresintended to prevent or minimize the lossintended to prevent or minimize the loss

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Photo Electric BeamsGlass break detectorsVibration / Inertia sensorsMicro-phonic systems

Taut wire fence systemsTaut wire fence systems

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Central station to have a representativerespond

Central station needs to keep trying until theyget the specified contact personnel

Contingent plansContingent plans

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LOOP

DIRECT WIRE

DIGITAL COMMUNICATORS

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Insured Owned Buildings and Property

• The owner can install any security system,make physical changes to the interior orexterior of the property and install interiorexterior of the property and install interiorand exterior barriers.

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• Leased Buildings and Property• Leased buildings or a section of a building,

insured’s are somewhat limited in what they can doto protect their inventory.

• Alarm systems and CCTV can usually be installed atthe insured’s expense.

• The lease agreement with the property owner maydictate restrictions on what could be done.

• Installation of interior & exterior fences, gates andbarriers may not be possible.

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Third Party Warehouses• In third party warehouse locations the

warehousemen should provide security fortheir clients.their clients.

• The economic value of a customer drives thedecisions of third party warehouseman oninstallation and changes to security systems.

• The security of a third party warehouse mustbe a major factor on an insured using aparticular third party provider.

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Layers of protection should overlap andintegrate

Unauthorized entry may be made from anyUnauthorized entry may be made from anydirection

Variety of protections designed to detectand/or delay an intrusion

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Regular audits to ensure that all measures areoperational and effective

Regular security surveys with written actionRegular security surveys with written actionplans for all deficiencies

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Audience participation required:The next two slides show a warehouse layout.What do you see? What don’t you see?What type of alarms should be installed and

where?where?

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For further information contact:

AIMU Cargo Loss Prevention Committeec/o AIMU

14 Wall Street, Suite 820,14 Wall Street, Suite 820,New York, NY 10005

Or visit our website: www.aimu.org

Thank you!27