Water Woes
November 12, 2013 | Posted Articles | Be the first one to comment.
Eight tips for avoiding water damage to your business
By Byron Yankou
With recent cases of severe flooding in Calgary and Toronto, it might not come as a surprise that water damage has overtaken fire as the leading cause of property damage in Canada. In addition to overland flooding that can result in millions of dollars in physical damage as well as lost business, we look at some of the most common ways that water can wreak havoc on your business and ways you can minimize your risk as a business owner
In this article, we present the problem, offer some practical prevention tips, as well as explain what to pay attention to with your insurance program.
Major Causes of Water Damage
Dino Orsini, a master plumber of over 30 years and manager of Toronto’s Copperhead Mechanical, has worked in many of Ontario’s finest commercial kitchens. He lists eight of the major causes of water damage besides overland flooding.
• Burst pipes
• Sewer back up
• Leaky roofs or excess water buildup on flat roofs
• Water seepage through foundation walls (not covered by insurance)
• Incoming water through windows and other openings
• Poor landscaping that has water flowing towards your building
• Clogged grease traps
• Frozen sprinkler heads bursting
Orsini has the following plumbing preventative maintenance tips to keep you dry and in business.
• Solenoid Valve Switch for the kitchen area to easily shut off the water service each night at the close of business. “When food preparation is over for the day, and it’s time to go home, shut off the water service for the kitchen area. This is easy to do when you install a solenoid valve switch. By shutting off the water service, you can prevent substantial water damage due to burst pipes in the middle of the night when your business is closed,” says Orsini.
• “Scupper” drains for flat roofs. “I can’t speak highly enough about installing scupper drains for flat roof drainage,” says Orsini. “When the sanitary drainage systems are overflowing, a building runs the risk of having water rising in the drains and overflowing into heavy pools of water on the roof. Scupper drains will take excess water off of a roof and distribute the water much more safely at ground level.”
• Sump pump alarms. “Make certain that if water is rising in the sump pump area, that a centrally monitored alarm goes off. Have a battery backup in the event of a power failure.”
• Back-water valves. “Installation of back-water valves is becoming much more common in first-class kitchens for the prevention of sewer backup.”
• Grease traps. “Improperly installed or maintained grease traps cannot only cause backups in your own restaurant, but can also be the root cause of damage to neighbouring properties.”
In addition to Orsini’s tips, don’t forget:
�• Frozen pipes: A heating contractor can ensure even heat distribution especially in ceilings and walls to prevent water pipes and sprinkler heads from bursting. Resist turning down the heat to save a few bucks on frigid winter nights and risk frozen, bursting pipes.
• Clogged drains: Get roofing contractors to do preventative maintenance on roofs, particularly on flat roofs. Pay attention to drainage systems that can get clogged, causing water to seep down walls.
• Water flowing away from building: Ensure proper landscape design to have water flowing away from the building. Proper drainage outside your building is crucial.
Ensure You’re Covered
�In addition to prevention, it’s crucial to pay attention to these coverage areas on your insurance policy BEFORE you suffer water damage.
• Sewer Back Up
• Flood
• Property Coverage Limits and Deductibles
Don’t forget to buy sewer backup and flood coverage for your hospitality insurance. Make certain that it’s spelled out in the first few declarations pages of your policy. Pay close attention to the deductibles. Insurance companies can set flood deductibles from $10,000 to $50,000. Review your property limits. Many Canadian businesses that have never had to make an insurance claim don’t buy enough coverage, and then when they do suffer a loss, don’t have enough insurance to cover their loss. Remember, water seeping through walls is not covered by insurance because it’s deemed a maintenance problem.
Point out the number of ways that you take care to prevent water damage to your insurance broker. You’ll be surprised at the money that you could save on your premiums, if you’re able to show that you’ve taken some of the preventative measures outlined above.
Any business, large or small, can apply the risk management techniques of prevention, avoidance and risk transfer, usually by insurance. When you do, you’re much
more likely to survive and thrive.
Byron Yankou is CEO of AVID Insurance & Risk Management in Toronto.
AVID specializes in food service insurance programs and risk management
across Canada. For more information, go to Dinesurance.ca and follow
him Twitter @Dinesurance.
Under Pressure
January 17, 2013 | Posted Articles | Be the first one to comment.
A crisis communications strategy protects your customers, employees and your reputation.
By Byron Yankou
What would you do if 10 media people with cameras and microphones were banging at your front door, demanding to know about reports of illness allegedly caused by food served at your establishment?
Chi Chi’s was a 100-unit strong U.S. restaurant chain that saw one of its locations receive a shipment of contaminated green onions in September 2003. Though the Chi Chi’s franchisee had thoroughly washed the green onions, and had passed all previous health department inspections, there was soon a crisis.
The green onions they purchased had been shipped in ice that carried the Hepatitis A virus. Over 650 people became infected and three died. The Chi Chi’s chain – which had experienced some unrelated market challenges but was still a very viable organization – did not survive the crisis and eventually went out of business. People in the industry later analyzed Chi Chi’s communications response, which became a lesson on what not to do.
According to Public Relations Quarterly (December 1, 2005) during Chi Chi’s first public comment, “…the spokesperson was not reported as being regretful for the outbreak or compassionate for the hundreds of victims. In effect, the message failed to characterize the company as caring or willing to serve the public need, and thus lacked the essence of character.” Their financial condition and the Hepatitis A outbreak coupled with Chi Chi’s corporate responses all contributed to the chain’s failure. Now, let’s contrast Chi Chi’s response with that of Maple Leaf Foods.
Immediate Response
According to Linda Smith, president of Smithcom Communications and a crisis communications expert who has called Maple Leaf Foods a client for nearly 15 years, the company’s compassionate and ethical response during the listeriosis outbreak of August 2008 helped protect the public from further exposure to the bacteria that causes listeriosis. This was accomplished by a wide product recall of meat produced at the identified plant, as well as closure of several Maple Leaf production facilities. Maple Leaf responded immediately. Three hours after the Canadian Food Inspection Agency (CFIA) confirmed the existence of the bacteria, Maple Leaf Foods CEO Michael McCain took full responsibility for the outbreak. He communicated directly to the public through the media, showing people that public welfare was first and foremost.
Communicat ion Tips
At this year’s CRFA Show, Smith participated in a well-received seminar where she discussed crisis communications for foodservice operators who mistakenly serve contaminated food. Smith offers the following Dos and Don’ts for crisis communications:
DO
• Be real, be humble
• Be visible
• Control the agenda
• S tart immediately
• M ake big decisions
• Accept responsibility in person, without exception
• U se simple quotes
• H ave many channels
DON’T
• Presume it will go away if you don’t participate
• Presume it won’t get worse
• Hide
• Underestimate impact
• Become arrogant
• Blame others
• Rely on government
The CFIA website states that there are about 11 million cases of food borneillness in Canada every year. The vast majority of these cases may be prevented by using safe foodhandling practices known as “cook, clean, chill and separate.” But there may be foodborne illnesses that will affect your operation that you cannot prevent.
Make Safety a Priority
It is important your company follow a written food risk management plan like HACCP. Make all staff aware that food safety is the ultimate priority. If your staff has followed HACCP, then there is a better chance that food served by your organization is safe. If you have served contaminated food from no fault of your own, you’ll be less liable if you can prove that you follow safe food practices.
Engaging an independent communications expert may be as crucial to your establishment’s survival as seeking professional legal or tax advice. Consult with your insurance broker on how your organization may obtain coverage through the CRFA Restaurant Protect plan. CRFA’s Restaurant Protect Insurance Policy includes business interruption coverage which can help you in case of injury to a customer or loss of business due to a closure. Restaurants can opt in for additional coverage called Restaurant Recovery that includes help from crisis communications experts. That policy also covers accidental contamination, malicious tampering of food, or
product extortion. Your insurance broker can give you detailed information on all the different levels of coverage available.
There’s no question that with the tens of millions of restaurant meals served in Canada every year without incident, we enjoy a very safe food supply. But food service organizations must be ready to defend their reputation in the event of a food related catastrophe. Between allergic reactions and contaminated food, the wise operator will practice prevention but prepare for unwanted situations.
Byron Yankou is a restaurant risk management and restaurant insurance expert. You can contact him through his website www.Dinesurance.ca or follow him on Twitter @Dinesurance.