资源描述
Automatic Sprinkler System ContractorsAutomatic Sprinkler System Contractors Fire Sprinkler System Contractors Plumbing, Heating (Except Electric) and Air. Fire Protection Equipment Dealers and Distributors Fire Extinguisher - servicing, refilling or testing Fire Suppression Systems - installation, servicing. a7780Revision Date: 7/84 LineBests Hazard IndexUnderwriting Comments AUTOMOBILE LIABILITY6Extent and radius of travel important factors.GENERAL LIABILITY6Considerable off-premises work.PRODUCT LIABILITY AND COMPLETED OPERATIONS7Strict compliance with NFPA Standard 13 essential.PROFESSIONAL LIABILITY7Varies with extent of consulting/design work.WORKERS COMPENSATION6CRIME3FIRE AND E.C.3BUSINESS INTERRUPTION3INLAND MARINE4Low 1-3, Medium 4-6, High 7-9, Very High 10 SIC CodeSIC Classification 1711Plumbing, Heating (Except Electric) and Air Conditioning ISO CodeISO Classification 12707Fire Protection Equipment Dealers and Distributors94304Fire Extinguisher - servicing, refilling or testing94381Fire Suppression Systems - installation, servicing or repairSpecial Exposures Faulty system designConsulting/engineeringServicing of sprinkler systems Related Classifications Air Conditioning, Refrigeration and Heating ContractorsAlarm System Dealers and InstallersArchitects and EngineersFire Extinguisher Sales and ServicePlumbing ContractorsWelding, Brazing and Cutting RISK DESCRIPTION a778r.Automatic sprinkler system contractors sell, install and service a variety of fire sprinkler systems for commercial, industrial and residential applications. Most firms are independently owned and are housed in mercantile-type structures; storage facilities and display showrooms may be included on the premises. The majority of risks are small operations, generally employing fewer than 10 workers on a full- or part-time basis. Larger franchised operations may have several branch/sales offices. Service personnel may work six days a week and overtime installing new equipment and servicing equipment already in place, and they may be on 24-hour call to deal with emergencies. Firms may deal exclusively with one manufacturer and obtain company authorization to distribute, install and service its products, or they may offer a variety of sprinkler equipment. The latter type of dealer generally enters into a nonbinding contract with manufacturers who usually are the sole warrantors of new equipment and products. Sprinkler systems vary greatly in cost, complexity, and degree of protection. They can be broken down into five basic types: (1) wet pipe, in which all the piping is filled up to the sprinkler heads with water under pressure and, when heat activates the sprinkler, water is immediately sprayed over the area below; (2) dry pipe (generally substituted for a wet-pipe system in areas where piping is exposed to freezing temperatures), in which the piping contains compressed air that holds back the water until sprinkler activation; (3) deluge, which wets down an entire area by admitting water to sprinklers that are opened all at once; (4) preaction, which is similar to a dry-pipe system but reacts faster; and (5) hydraulically calculated, which is designed for occupancies with a limited water supply system. Special hazards may require methods of extinguishment or control other than water, such as Halon, carbon dioxide, dry chemicals or foam. The National Fire Protection Association and the National Association of Fire Equipment Distributors oversee the operation of individual dealerships and recommend or enforce standards for the installation and maintenance of sprinkler equipment. The Compressed Gas Association sets standards for the maintenance and storage of high-pressure cylinders containing various extinguishing agents. Approval standards devised by the Factory Mutual Companies for sprinkler system installation and service agencies are supported by both the Fire Equipment Manufacturers Association and the National Association of Fire Equipment Distributors. Voluntary adoption of these standards, together with service personnel training and certification, may gain Factory Mutual licensing for the insured. Several states have sprinkler contractor licensing laws. Because the sprinkler industry traditionally has been a design/build industry, the newer contractor licensing laws generally employ a competency requirement based on Level III Designer Certification of the National Institute for Certification in Engineering Technologies. Sprinkler contractors may be members of either the National Automatic Sprinkler and Fire Control Association or the National Fire Sprinkler Association. MATERIALS AND EQUIPMENT a778t.Sprinkler system equipment - sprinkler heads, pipes (steel, copper or iron), fittings, hangers, valves, pumps, tanks, gauges, alarms; extinguishing agents and materials (Halon, carbon dioxide, dry chemicals, foam, etc.) in cylinders, tanks and other containers. Recharging and hydrostatic testing equipment; miscellaneous power and hand tools; pipe cutters; welding, soldering and brazing equipment; various supplies and equipment for installation, testing and repair. Mobile service vehicles equipped with a variety of tools, recharging materials, ladders, and other supplies and equipment. Personal protective equipment. Computers. PROCESS OR SERVICE a778s.Qualified personnel perform fire protection surveys on the customers premises to determine appropriate and adequate sprinkler systems for the type of occupancy and the hazards of operations, exactly where sprinkler heads should be installed, the location of specialized fixed systems, and the best route for the installation of the piping and stored extinguishing agents (if not hydraulic). Because efficiency also depends on minimizing all fire hazards - including those created by renovation of the building - the condition and adequacy of existing systems also are assessed. Specifications for sprinklers require that the system be installed in accordance with NFPA Standard Nos. 13 and 13-D (for residences). These standards allow for the installation of either a pipe-schedule system or a hydraulically calculated system. With a pipe-schedule, or pre-engineered, system, the pipe sizes are predetermined based on the general building occupancy. Hydraulically calculated systems are designed with detailed calculations to assure adequate system performance considering the water supply characteristics. Most pipes are steel, copper or cast iron. Although some pipes come ready to install, most pipes have to be fitted for the job. To fit pipes, workers may have to measure, bend, cut and thread pipes, then bolt, braze, solvent weld, screw or solder them together. The entire system is installed in accordance with engineered pipe-fitting blueprints. Installers may have to drill holes in ceilings, floors and walls or hang steel supports from the ceilings to position the pipes properly. Once installation is complete, the installer tests the system for proper activation and response. Water pressure is checked to ensure adequate supply for the system. Service personnel make scheduled inspection/maintenance visits to customers premises to examine the equipment (pipes, pressure gauges, valves, controls, fusible links) for corrosion, damage, tampering and leaks. Sprinkler equipment must be inspected at least yearly and recharged (if not hydraulic) or repaired to ensure operability and safety. A notice of service is attached to show the maintenance or recharge date and signature or initials of the person performing the service. Some dealers operate a 24-hour emergency service. Ancillary operations may include the sale, installation and servicing of smoke and fire detection systems. The sprinkler system contractor may perform as a subcontractor on newly constructed buildings; this work usually is acquired through competitive bidding. Some contractors may engage in retrofitting of sprinkler systems in existing structures. See also Fire Extinguisher Sales and Service. Automobile Liability a778a.Employees, materials and equipment usually are transported to different job locations in company-owned mobile fleet service vehicles - vans and light pickups. Losses may occur during travel to and from the job site or at the site itself. Sprinkler system contractors generally are locally oriented; however, the underwriter is advised to determine the radius of operation and the average number of locations visited on a daily basis. It is not uncommon for service personnel to make five to 10 service calls a day. The underwriter should examine the schedule to see whether adequate time is allotted for each call so that the driver need not rush from one client to the next. Many sprinkler system contractors provide a 24-hour emergency repair service. Such a service will increase the exposure. Consider the age and condition of the vehicles and the maintenance program. Determine the age and experience of all drivers, and obtain an MVR on each. Does the insured employ traveling salespersons or door-to-door representatives who routinely visit companies or residences? If employee-owned vehicles are used for business purposes, is adequate coverage provided by the employee or should coverage be provided by the insured? General Liability a778c.Because most of a sprinkler system contractors work is done at the customers building or residence, the exposures on the insureds premises will be minimal. Nevertheless, adequate supervision and good housekeeping should be maintained for the few suppliers, customers and other business guests who enter the contractors office or home. Storage of various extinguishing materials on the premises may present explosion or leakage hazards. Are containers and cylinders checked regularly for corrosion and leaks? All visitors should be prohibited from entering the service and storage areas. Off the premises, the potential for loss is considerably greater. Damage to a customers property may occur while service personnel are installing, inspecting or repairing equipment. Extinguishing agents, tools and equipment may present hazards if precautions are not taken to isolate areas where work is being performed. Inexperience or carelessness of service personnel also may result in damage to the customers premises. Find out whether installers take the required measures to protect furnishings, floors, ceilings, kitchen facilities and other parts of the structure while working on equipment. Precautions also should be observed when performing demonstrations for customers and testing equipment for safety personnel on the customers premises. The underwriter should require the insured to keep a detailed record of all jobs, including the date, type of work performed, and replaced or recharged parts. Does the contractor use red tags when valves are closed during repairs? Are all valves reopened when the job is completed? Leaks in the pipes carrying the extinguishing agents may occur when the systems are being tested, or, if insufficient testing has been performed, when the system is activated for use. Explosions due to failure to use the proper materials and devices or incorrect pressurizing of systems also are possible. Coverage must be clear as to whether the common care, custody and control exclusion applies while the insured is working in the building and as to what portion of the premises is in the installers care, custody and control. Employees may be accused of stealing from the customers premises. Therefore, employees could be added to the policy as additional insureds to ensure protection for the firm owner in the event of a suit stemming from an alleged dishonest act or a personal injury suit. Are employees bonded? To prevent disputes over losses, General Liability, Product Liability and Professional Liability coverages should be written in the same company for the same limits. Also, because of possible disputes involving loading and unloading, General Liability and Automobile Liability ought to be written with the same carrier for the same limits. Product Liability and Completed Operations a778d.Sprinkler system equipment is susceptible to product failure due to a defect in design, inadequate or improper installation, or negligent maintenance, service and inspection procedures performed by the insured. In the event that extinguishing equipment malfunctions during a fire, significant values may be at stake on the customers premises. The insureds employees may recommend the wrong sprinkler system for the size and type of hazard present at an occupancy. When systems are specially engineered by service agency personnel, the equipment may prove faulty in design or specifications. Once equipment and systems are installed, a test run may reveal inadequacy or improper design; the system may fail to meet local, state or federal inspection and require partial or total reinstallation. All extinguishing equipment should be maintained and serviced in accordance with the manufacturers operation and maintenance instructions, NFPA Standard Nos. 13 and 13-D, and Compressed Gas Association pamphlets C-1, C-6 and P-1. NFPA standard provisions apply to the selection, installation, inspection, maintenance and testing of sprinkler system equipment. The Compressed Gas Association recommendations apply to hydrostatic testing, visual inspection, and handling of compressed gas containers. What is the insureds schedule for inspecting and servicing customers equipment - semiannual or annual? Are records kept indicating the date of service and what work was performed each time? Where are duplicate records stored, and how are they safeguarded? They should be stored for a minimum of five years. Are copies of inspections and maintenance records sent to the required local authorities and other agencies? Does the insured warn the customer against deactivating parts of the system? Does the insured provide the customer with red tags, to be placed on valves that are closed temporarily? The current trend in the courts is to hold sprinkler system sales and service contractors and personnel liable as professionals, or trained experts in their field of fire protection, for product failure or malfunction due to negligence in servicing, maintaining and inspecting equipment. Strong contract disclaimers intended to release the insured from all liability for product or systems failure are largely ignored by the courts. The law has begun to assign an increased amount of professionalism to service personnel in this class, regardless of the lack of mandatory registration or licensing of employees. (See Professional Liability.) Sprinkler systems may be subject to design or approval by architects, municipal officials or insurance authorities. The insured should secure and retain documentary evidence of such design or approval. To avoid any possible conflicts, Product Liability, Professional Liability and General Liability coverages should be written in the same company and for the same limits. Refer to Plumbing Contractors for a full discussion of faulty pipe or duct system installation and inadequate central water supply. Professional Liability a778e.Professional Liability, of Errors and Omissions, coverage is strongly recommended for sprinkler system contractors as they act as fire protection consultants to customers. They are responsible for deciding which systems are technically appropriate for the customers premises, where the systems are to be located, installing them correctly, inspecting, testing and servicing them. The major exposure involves errors in judgment in design. In surveying the customers premises, a contractor may overlook or underestimate areas of exposure and leave them unprotected by the sprinkler system. Another design judgment involves the contractors evaluation of the capabilities of different devices; a system may inadequately cover the exposed area, or the extinguishing agent may be ineffective in protecting the property. Electronic data processing areas may be inappropriately sprinklered with systems that will partially destroy or ruin expensive equipment and irreplaceable information. The insureds experience and reputation, length of time in business, the quality of employee training and supervision, and the firms record of compliance with NFPA standards for the installation, inspection and maintenance of sprinkler systems are all essential considerations when writing an Errors and Omissions policy for this class. If the state in which the insured works has licensing requirements, is the contractor licensed? Clauses should be stated clearly with regard to exclusions involving faulty work; passive losses; care, custody and control; and other special contractors and subcontractors endorsements. Professional Liability, Product Liability and General Liability policies should be written in the same company for the same limits if possible, in order to avoid gaps or disputes over coverage. Workers Compensation a778g.Employees may be exposed to injury both on the premises in storage and testing areas and at the job location when installing or servicing customers equipment. On the insureds premises, adequate, well-maintained equipment must be available for inspecting, testing, weighing and recharging equipment. Ample stocks of recharging materials are required, and containers of extinguishing agents must be marked carefully to ensure proper usage. Protective chambers, cages or shields must be used by workers during hydrostatic pressure tests of extinguisher canisters or tanks. Protective clothing, such as gloves and goggles, are strongly recommended to prevent contact with the extinguishing agents in case of explosion or leakage. Prolonged contact with or inhalation of extinguishing agents presents skin irritation and respiratory tract hazards. Caustic and toxic substances contained in the various materials - especially dry chemicals - may cause permanent damage to the lungs and contact areas of workers exposed to large amounts for inordinate periods of time. On the customers premises, installation and inspection of sprinkler systems involves working with ladders, a variety of hand and power tools, and recharging and testing devices. The most common injuries stem from falls from heights or concealed ceiling spaces and from recharging equipment. Frequent though not serious losses can be prevented by maintaining all tools and equipment in good operating condition. Jobs that are more safely performed at the contractors facilities should not be attempted on the customers premises. Working in concealed spaces and over kitchen appliances and facilities - as well as in furnace and venting/heating system areas - exposes workers to the hazards of climbing and maintaining awkward operating positions. Because the training and certification of service personnel is not yet mandatory in many areas, some workers may not be experienced or familiar with proper installation and maintenance techniques. Does the insured have minimum prior training requirements for employees or depend solely on on-the-job training? Does the contractor hire casual or temporary workers? Refer to Plumbing Contractors for a further discussion of exposures involved with piping. Employees also may be exposed to vehicular accidents and hazards of the road. Crime a778h.The exposure usually is minimal; however, employee theft of materials and equipment may be a problem. Is the same person responsible for ordering supplies and for accounting procedures? Tight inventory controls, outside audits and thorough preemplo
展开阅读全文