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Holistic Site Security Douses Wood-Framed Fire Risk

Several trends in the construction industry are feeding the rise of wood-framed construction – and construction fires.
By: | November 7, 2017 • 6 min read

Over a July weekend in 2017, five buildings in a Waltham, Mass., apartment complex burned to the ground. This only a month after another blaze took down an expansive but unoccupied building in nearby Dorchester. In both cases, local firefighters spent more than 24 hours getting the flames under control and extinguishing hot spots.

Both buildings were still under construction, and both were consumed by fire so quickly because their bones were not made of the steel beams that traditionally hold up large structures — but of wood.

The vulnerability of wood frame construction to a fast-spreading fire (during the stage of construction when framing is exposed) first garnered attention in 2012, when a multi-story senior center in Oakland, Calif., was incinerated down to its first floor, which was made of concrete.

“Since then we have seen increasing frequency of these fires as wood framing becomes more common for large buildings,” said Peter Wilcox, Inland Marine Director for Travelers, specializing in construction and renewable energy.

Several trends in the construction industry are feeding the rise of wood-framed construction – and construction fires.  This presents a worker safety risk as well as property risk. Project owners/developers can help protect themselves on all fronts by incorporating fire prevention protocols into a holistic risk-management approach that considers both worker safety and property exposures.

Industry Trends: Materials and Labor

Peter Wilcox, Inland Marine Director

Wood has always been the primary building material for smaller residential structures, but multi-story apartments, big commercial buildings and mixed-use spaces traditionally relied on steel framing.

“More builders are using wood framing today because wood is less expensive per square foot, easily obtained from the local lumber yard, and much easier to work with. You can usually make changes to the design, such as changing a window opening, relatively easily. And that means that buildings get done faster as well,” Wilcox said.

Faster timelines mean contractors can take on more projects.

Tight schedules and heavy workloads heighten safety risk on their own, but the continuing skilled-labor shortage in construction compounds the exposure.

“A lot of experienced tradesman left the profession during the recession in 2008,” Wilcox said. “As work picks up again, the growing labor pool may be less experienced with fire safety and prevention than in the past. This includes site supervisors as well as laborers.”

The industry has focused its energy on aspects of worker safety, including ergonomics, proper handling of equipment and slip and fall prevention – but the risk of fire remains an important and potentially overlooked risk.

“Clearly fire safety is an important worker safety issue as well.” Wilcox said. “Having fire extinguishers on-site is a start. But to be well prepared for a fire, it is best to address fire risk as part of a holistic site protection plan.”

A Holistic Approach to Site Security

Addressing fire safety begins with identifying potential sources of ignition, and then putting controls in place to manage them.

Hot-work activities present the most obvious source of construction fires. Soldering, welding or cutting metal, brazing refrigerant lines for A/C units or torch-applied roofing all send sparks flying. But these aren’t the only culprits. A commonly overlooked source is on-site cooking.

“The National Fire Protection Association (NFPA) found that cooking is a prevalent cause of fires on construction sites,” Wilcox said. “Once the building gets weather tight, the workers want a break room, a place for coffee pots, microwaves and hot plates. Some job sites bring in gas grills for Friday afternoon cookouts. But people forget what they’ve left on the cooktop.”

Other ignition sources include smoking, temporary heat, and arson.

“These are all things our risk control consultants are looking for on a job site, and identifying these risks is where we begin to build a fire prevention plan,” Wilcox said.

There are some common concepts or tenets in fire prevention plans. The primary tenet of a fire prevention plan is good housekeeping.

“Good housekeeping is close to godliness,” Wilcox said. “If we have a clean site, we’ll have a safe and productive site. Eliminating scrap piles and wood shavings gets rid of those small materials that can really get a fire going.”

The second tenet is training and supervision, especially when less-experienced workers are conducting hot-work activities. In addition to learning how to safely execute these tasks, workers also need proper response training for when something goes awry.

Wilcox cited one incident that happened early in his career, where plumbers were soldering fittings to a pipe protruding from the finished drywall. They noticed that smoke was coming out from the wall opening and they had repeatedly used fire extinguishers to put out the flames sparked by their work. They left for the day when they finished their work, not knowing that the fire has spread deep inside the wall cavity. The entire project ended up in smoke.

“They never bothered to tell anyone they had discharged their extinguisher. A supervisor should have been informed, and the fire department should have been called to come out and make sure the flames didn’t spread,” Wilcox said. “It’s a lot cheaper to remove a section of drywall and check for fire than to rebuild an entire structure.”

In fact, it is best to involve the local fire department as an active participant in a fire prevention plan from the start, Wilcox said. Site supervisors can ask them to do walk-throughs, identify potential hazards and recommend solutions.

A third tenet is having the right equipment on hand and ready to go. Fire extinguishers are a no-brainer, but many sites don’t turn on sprinkler systems until the building is complete, for fear of extensive water damage.

“A fire does a lot more damage than water. There are some communities now trying to get their fire departments to allow builders to activate sprinkler systems earlier in the project, even though current building codes don’t require it,” Wilcox said. “Having sprinkler systems activated can eliminate or reduce the spread of fire during construction which can minimize project delays and keep employees and surrounding areas safer.”

Finally, a fire prevention plan should be part of a wider site security initiative that includes surveillance and security guards who are also trained to identify potential ignition sources and other construction site hazards. “Guards are not only there for security and theft prevention; they look out for the safety of the building overnight,” Wilcox said.

Risk Control Expertise

Travelers can provide resources and information to help develop fire prevention plans, including, written guidelines, safety bulletins and site security checklists. Risk control consultants also conduct site visits and can offer recommendations to help manage potential fire risks.

“With wood-frame construction, we can visit the site when framing starts, and then go out two or three more times as it progresses. Our consultants can provide detailed reports of their observations and recommend some ways the site can improve its security and fire safety,” Wilcox said.

“Many of our recommendations and resources to clients are based on NFPA standards, such as NFPA 241, Standard for Safeguarding Construction, Alteration, and Demolition Operations. This standard addresses common sources of fires like hot-work activities, but also discusses overall site security. It’s a comprehensive set of best practices to prevent fire.”

And because wood framing seems here to stay, it’s a standard worth implementing ASAP.

To learn more, visit https://www.travelers.com/resources/business-industries/construction/protecting-your-construction-site-from-fire-water-and-theft.aspx.

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This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Travelers. The editorial staff of Risk & Insurance had no role in its preparation.




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The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. A component of the Dow Jones Industrial Average, Travelers has approximately 30,000 employees and generated revenues of approximately $28 billion in 2016. For more information, visit www.travelers.com.

Cyber Resilience

No, Seriously. You Need a Comprehensive Cyber Incident Response Plan Before It’s Too Late.

Awareness of cyber risk is increasing, but some companies may be neglecting to prepare adequate response plans that could save them millions. 
By: | June 1, 2018 • 7 min read

To minimize the financial and reputational damage from a cyber attack, it is absolutely critical that businesses have a cyber incident response plan.

“Sadly, not all yet do,” said David Legassick, head of life sciences, tech and cyber, CNA Hardy.

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In the event of a breach, a company must be able to quickly identify and contain the problem, assess the level of impact, communicate internally and externally, recover where possible any lost data or functionality needed to resume business operations and act quickly to manage potential reputational risk.

This can only be achieved with help from the right external experts and the design and practice of a well-honed internal response.

The first step a company must take, said Legassick, is to understand its cyber exposures through asset identification, classification, risk assessment and protection measures, both technological and human.

According to Raf Sanchez, international breach response manager, Beazley, cyber-response plans should be flexible and applicable to a wide range of incidents, “not just a list of consecutive steps.”

They also should bring together key stakeholders and specify end goals.

Jason J. Hogg, CEO, Aon Cyber Solutions

With bad actors becoming increasingly sophisticated and often acting in groups, attack vectors can hit companies from multiple angles simultaneously, meaning a holistic approach is essential, agreed Jason J. Hogg, CEO, Aon Cyber Solutions.

“Collaboration is key — you have to take silos down and work in a cross-functional manner.”

This means assembling a response team including individuals from IT, legal, operations, risk management, HR, finance and the board — each of whom must be well drilled in their responsibilities in the event of a breach.

“You can’t pick your players on the day of the game,” said Hogg. “Response times are critical, so speed and timing are of the essence. You should also have a very clear communication plan to keep the CEO and board of directors informed of recommended courses of action and timing expectations.”

People on the incident response team must have sufficient technical skills and access to critical third parties to be able to make decisions and move to contain incidents fast. Knowledge of the company’s data and network topology is also key, said Legassick.

“Perhaps most important of all,” he added, “is to capture in detail how, when, where and why an incident occurred so there is a feedback loop that ensures each threat makes the cyber defense stronger.”

Cyber insurance can play a key role by providing a range of experts such as forensic analysts to help manage a cyber breach quickly and effectively (as well as PR and legal help). However, the learning process should begin before a breach occurs.

Practice Makes Perfect

“Any incident response plan is only as strong as the practice that goes into it,” explained Mike Peters, vice president, IT, RIMS — who also conducts stress testing through his firm Sentinel Cyber Defense Advisors.

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Unless companies have an ethical hacker or certified information security officer on board who can conduct sophisticated simulated attacks, Peters recommended they hire third-party experts to test their networks for weaknesses, remediate these issues and retest again for vulnerabilities that haven’t been patched or have newly appeared.

“You need to plan for every type of threat that’s out there,” he added.

Hogg agreed that bringing third parties in to conduct tests brings “fresh thinking, best practice and cross-pollination of learnings from testing plans across a multitude of industries and enterprises.”

“Collaboration is key — you have to take silos down and work in a cross-functional manner.” — Jason J. Hogg, CEO, Aon Cyber Solutions

Legassick added that companies should test their plans at least annually, updating procedures whenever there is a significant change in business activity, technology or location.

“As companies expand, cyber security is not always front of mind, but new operations and territories all expose a company to new risks.”

For smaller companies that might not have the resources or the expertise to develop an internal cyber response plan from whole cloth, some carriers offer their own cyber risk resources online.

Evan Fenaroli, an underwriting product manager with the Philadelphia Insurance Companies (PHLY), said his company hosts an eRiskHub, which gives PHLY clients a place to start looking for cyber event response answers.

That includes access to a pool of attorneys who can guide company executives in creating a plan.

“It’s something at the highest level that needs to be a priority,” Fenaroli said. For those just getting started, Fenaroli provided a checklist for consideration:

  • Purchase cyber insurance, read the policy and understand its notice requirements.
  • Work with an attorney to develop a cyber event response plan that you can customize to your business.
  • Identify stakeholders within the company who will own the plan and its execution.
  • Find outside forensics experts that the company can call in an emergency.
  • Identify a public relations expert who can be called in the case of an event that could be leaked to the press or otherwise become newsworthy.

“When all of these things fall into place, the outcome is far better in that there isn’t a panic,” said Fenaroli, who, like others, recommends the plan be tested at least annually.

Cyber’s Physical Threat

With the digital and physical worlds converging due to the rise of the Internet of Things, Hogg reminded companies: “You can’t just test in the virtual world — testing physical end-point security is critical too.”

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How that testing is communicated to underwriters should also be a key focus, said Rich DePiero, head of cyber, North America, Swiss Re Corporate Solutions.

Don’t just report on what went well; it’s far more believable for an underwriter to hear what didn’t go well, he said.

“If I hear a client say it is perfect and then I look at some of the results of the responses to breaches last year, there is a disconnect. Help us understand what you learned and what you worked out. You want things to fail during these incident response tests, because that is how we learn,” he explained.

“Bringing in these outside firms, detailing what they learned and defining roles and responsibilities in the event of an incident is really the best practice, and we are seeing more and more companies do that.”

Support from the Board

Good cyber protection is built around a combination of process, technology, learning and people. While not every cyber incident needs to be reported to the boardroom, senior management has a key role in creating a culture of planning and risk awareness.

David Legassick, head of life sciences, tech and cyber, CNA Hardy

“Cyber is a boardroom risk. If it is not taken seriously at boardroom level, you are more than likely to suffer a network breach,” Legassick said.

However, getting board buy-in or buy-in from the C-suite is not always easy.

“C-suite executives often put off testing crisis plans as they get in the way of the day job. The irony here is obvious given how disruptive an incident can be,” said Sanchez.

“The C-suite must demonstrate its support for incident response planning and that it expects staff at all levels of the organization to play their part in recovering from serious incidents.”

“What these people need from the board is support,” said Jill Salmon, New York-based vice president, head of cyber/tech/MPL, Berkshire Hathaway Specialty Insurance.

“I don’t know that the information security folks are looking for direction from the board as much as they are looking for support from a resources standpoint and a visibility standpoint.

“They’ve got to be aware of what they need and they need to have the money to be able to build it up to that level,” she said.

Without that support, according to Legassick, failure to empower and encourage the IT team to manage cyber threats holistically through integration with the rest of the organization, particularly risk managers, becomes a common mistake.

He also warned that “blame culture” can prevent staff from escalating problems to management in a timely manner.

Collaboration and Communication

Given that cyber incident response truly is a team effort, it is therefore essential that a culture of collaboration, preparation and practice is embedded from the top down.

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One of the biggest tripping points for companies — and an area that has done the most damage from a reputational perspective — is in how quickly and effectively the company communicates to the public in the aftermath of a cyber event.

Salmon said of all the cyber incident response plans she has seen, the companies that have impressed her most are those that have written mock press releases and rehearsed how they are going to respond to the media in the aftermath of an event.

“We have seen so many companies trip up in that regard,” she said. “There have been examples of companies taking too long and then not explaining why it took them so long. It’s like any other crisis — the way that you are communicating it to the public is really important.” &

Antony Ireland is a London-based financial journalist. He can be reached at [email protected] Dan Reynolds is editor-in-chief of Risk & Insurance. He can be reached at [email protected]