JURISDICTIONAL INSPECTION PREPAREDNESS SORM 2014 Risk Management Symposium Agenda 1. Boilers – a short primer 2. Why do inspections? 3. How do we and our customers know an inspection is needed? 4. How do we help our partners and customers with inspections? 5. The inspection process 6. What do we find and how do we follow up? 7. The importance of maintenance © 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 2 A Short Primer – Definition Boiler A closed vessel in which water is heated, steam is generated or steam is superheated for use external to itself by the application of heat © 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 3 A Short Primer – Boiler Categories Heating Boilers Power Boilers Steam is generated at or below 15 psig, or water is heated at or below 160 psig and/or 250°F Steam is generated above 15 psig Steam boilers, high temperature water boilers, electric boilers, miniature boilers psig = pounds per square inch gage © 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 4 A Short Primer – Boiler Types Firetube Boiler Watertube Boiler Cast Iron Boiler © 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 5 A Short Primer – Boiler Applications Utility Boilers Industrial Boilers Commercial Boilers Large field erected units (~1M–10M lbs/hr) Used to generate electricity Sometimes referred to as steam generators This category includes heat recovery steam generators Packaged or field erected units (~5,000–1M lbs/hr) Used to drive production machinery, pumps, electric generators, compressors and provide heat for manufacturing processes Small capacity steam (~100–5,000 lbs/hr) or hot water boilers (~100,000 5M Btu/hr) Hospitals, schools, govt. / commercial / residential real estate settings, commercial laundries and dry cleaners © 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 6 Why do Inspections? Legal Requirement Most states or jurisdictions require periodic inspections Accident Prevention Boilers and pressure vessels represent explosive potential and can cause serious damage Efficiency & Cost Savings Systems degrade over time and can result in significant loss in efficiency and extra cost © 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 7 Why do Inspections? Legal Jurisdictional Inspection Requirements Most states or jurisdictions require: Requirements vary by state or jurisdiction: Periodic inspections of boilers by a commissioned inspector Frequency of low pressure boiler inspections may vary (e.g., annual, biennial) Current certificates of operation or inspection There are over 65 jurisdictions in the continental USA External and/or internal inspections may be performed: External inspections mainly address service requirements Internal inspections principally address certificate requirements © 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 8 Why do Inspections? Accident Prevention The Explosive Potential of Boilers If you could capture all the energy released when a 30gallon home hot-water tank flashes into explosive failure at 332°F you would have enough force to send the average car (weighing 2,500 pounds) to a height of nearly 125 feet – or more than the height of a 14story … building – starting with a lift-off velocity of 85 miles per hour!” © 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 9 Why do Inspections? Improve Efficiency & Save Costs Effect of Boiler Scale Buildup on Fuel Efficiency 80% 70% % Fuel Cost Increase 60% 50% 40% 30% 20% 10% 0% 0.0 5.0 10.0 15.0 Scale Thickness (mm) © 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 10 Helping our Partners and Customers Need an inspection? 1. Do you have any heating or process boilers at your location? 3. Do you have any pressure vessels at your location such as commercial air tanks or hot water tanks? 2. Do you have any large water heaters > 200,000 Btu/hr at your location? 4. Do you have air conditioning / refrigeration units at your location other than household refrigerators and freezers or window unit air conditioners? If the answer is “Yes” to any of the following questions, an inspection may be required © 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 11 Helping our Partners and Customers Our Resources Inspection Field Force Customer Solution Center Nationwide force of over 200 qualified inspectors serving every jurisdiction Certified by the National Board of Boiler and Pressure Vessel Inspectors Most experienced staff in the industry averaging 14 years on the job Rigorous training and testing of staff and solid reputation for thoroughness and know how Cross-trained in property and electrical exposures Proprietary work management system for optimized auto-scheduling of inspections Staff of over 70 qualified professionals located at Valley Forge, PA center Location Processing unit reviews and vets incoming data against over 12 million locations in our database Inspection Support group schedules / dispatches selected inspections and addresses regulatory issues Location Qualification unit generates service orders and resolves service issues Technical Support unit conducts EB telephone surveys, processes loss prevention reports and follows up on recommendations and compliance matters © 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 12 Helping our Partners and Customers What do we do? What does it cost? Identify and vet customer locations with jurisdictional objects requiring inspections Automatically schedule, prepare the customer for, and perform boiler / pressure vessel external and/or internal certification inspections in accordance with jurisdictional requirements Provide recommendations and advice to customers regarding hazardous conditions noted and opportunities to improve equipment operation, maintenance, reliability and efficiency Make occupancy, property and electrical observations for selected locations while on site and provide recommendations where conditions or opportunities are noted All of the above included as part of the equipment breakdown coverage at no extra cost to our partners or customers Customer pays equipment certificate fees, any inspection costs, and fines for missed/late inspections that are not HSB’s fault © 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 13 Helping our Partners and Customers Requesting Inspections Our Inspection Hotline 1.800.333.INSP (4677) 8 a.m.–8 p.m. EST E-mail: NSCInsp_Hotline@HSB.com Fax: 1.484.582.1838 Request certificate inspections Questions about our services Customers should provide the following information when calling to schedule an inspection: Location Name & Address Contact Name & Telephone Policy Number & Period HSB case or Service Order Number’ © 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 14 The Inspection Process External (In-Service) Inspections Schedule appointment when boiler operator or maintenance personnel are available to perform any required testing of controls and safety devices Inform operator of date and time Make sure current certificate is posted Keep clutter and debris out of boiler room to ensure inspector access Internal Inspections Perform the external inspection preparation steps above plus… Arrange to have boiler shut down, cool, and manhole and handhole covers removed Clean all exterior and interior boiler surfaces thoroughly Dismantle low water fuel supply cut out if present Disconnect feed line connection at the boiler Preparing for inspections – minimizing disruption of our customer’s operations © 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 15 The Inspection Process External (In-Service) Inspections Repairs Controls Logs Relief Valves © 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 16 The Inspection Process External (In-Service) Inspections Low water cut-off Piping Leaks, Corrosion, Cracking Foundation & Mounting Structure © 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 17 The Inspection Process Internal Inspections Lockout/Tagout Waterside – Scale, Corrosion, Warping Fireside – Cracking, Spalling, Flame Impingement Fireside – Soot, Ash, Overheating © 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 18 The Inspection Process What else…? Feedwater / makeup Control air compressors Water pumps Fuel pumps Fans & blowers Electrical panels © 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 19 What Do We Find? The complete spectrum… to Well-maintained equipment and facilities, all required permits and certificates, regular and appropriate maintenance Poorly maintained and/or compromised equipment, inadequate recordkeeping, code issues, variable maintenance © 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 20 The Importance of Maintenance Regular Preventive Maintenance Operating pressure & temperature Condensate / return water temperature Stack / exhaust gas temperature Fuel supply pressure Feedwater / makeup water pressure & temperature Low water fuel cut-off testing Safety / relief valve exercise & testing Flame failure safeguard testing Water treatment testing Boiler blowdowns © 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 21 The Importance of Maintenance Pay now…or pay more later Accident Prevention Safety Program Cost (¢ on $) vs. Injury or Fatality Cost ($$$$$$) Equipment Life Regular Upkeep Cost ($) vs. Replacement Cost due to Deferred Maintenance ($$$$) Business Continuity Planned Downtime Cost ($) vs. Unplanned Outage Cost due to Deferred Maintenance ($$$$$) © 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 22 THANK YOU VERY MUCH FOR YOUR ATTENTION SORM 2014 Risk Management Symposium