Executive Report
The Purpose of RIA
Does RIA have a purpose? On July 25, 2006, the RIA Board of
Directors took a major step to clarify the Association’s core
purpose and to set its course for the years to come when it adopted
a mission statement describing the organization that we all want
RIA to become for our industry:
RIA provides industry leadership, supports science, and
promotes best practices for cleaning and restoration.
When the strategic planning team met last December to map out
RIA’s future course, it was soon apparent that the Association
needed a mission that was concise, ambitious, and visionary. RIA
needed a statement of purpose that would enable accomplishments and
demand efforts beyond what RIA has been accustomed to during its
60-year history. To this extent, the RIA mission describes both why
the organization exists for the industry and our aspirations for the
future.
Arriving at a statement that meets the specifications of being
both concise and visionary with 22 different participants
takes more than a little time. Like most associations, RIA is many
things to its members, and those diverse views were all displayed
during that December session. There was much word wrangling as the
team tried to hammer out the most descriptive terms. There was much
frustration as people expressed the same thoughts in almost
different languages and dealt with variations of statements that
seemed as if they could fill a novel. And then it happened:
Revelation.
When the session leader read the first rough version of what
would eventually become the new mission, everyone in the room fell
silent as they simultaneously realized that they had found it: A
statement that accurately described why RIA exists and what we want
RIA to become.
Provide Industry Leadership: There is no other
association that unites the business interests of the restoration
and cleaning industry as does RIA. The association must build on
its members’ expectations for support and leadership towards making
this industry a respected asset to the world community, one that is
noted for ethical practice and competence.
Support Science: Throughout its history, RIA
has encouraged increased understanding of cleaning and restoration
technology and methods. RIA’s efforts in the field of C&R
sciences must increase the effectiveness and productivity of the
industry.
Promote Best Practices: There is strong
interest among RIA members to understand the best business
practices as well as the best cleaning and restoration methods
performed on behalf of a client. RIA must incorporate into its
information and education programs the essential business lessons
that, when applied, will preserve the RIA members’ place in the
front ranks of the industry.
What’s the purpose of RIA? It’s to provide leadership, support
science, and promote best practices for you, the RIA member.
Don Manger
Executive Director
RIA NEWS
Breaking
News
RIA Briefs
Toolbox
Tips
Marketing Savvy
Product
Spotlight
On Press
Now
INDUSTRY NEWS
"Home
Depot, Seeking Growth, Knocks on Contractors' Doors"
"A Green
Gem"
"Dry Steam Vapor
Marks Progress"
"What's Hot in
Carpet"
"Disclosure
Rules Unmask Pollution Costs"
"In Mississippi,
Katrina Recovery Gaining Steam"
"Don't
Slip-Slide Away"
"Ind. April
Hailstorms Generate $560 Million in Claims"
"Chemicals in
Household Cleaners May Pollute Indoor Air"
"Mold Helps Spur
Environmental Policy Sales"
"Cleanup Set for
Property Polluted by Explosives"
"Natural
Disasters Create Pollution Hazards"
"Workshop Will
Address Meth Cleanup"
"No Major
Lawsuits Filed Over Katrina's 'Toxic Soup'--Yet!"
"What Happens
When a Disaster Impacts the Entire Economy?"
RIA NEWS
Breaking News
Compiled from staff and wire reports
New Disaster Bill Proposed
Independent Insurance Agents and Brokers of America, Inc., are
fiercely backing a newly proposed natural-disaster bill which is
intended to strengthen private sector involvement in policy-making
decisions which affect insurance agents and insurance brokers
alike.
H.R. 5891, the Catastrophic Disaster Risk and Insurance
Commission Act, was introduced on July 26, 2006, by Debbie
Wasserman-Shultz (D-Fla.) and is backed by nine House
Representatives in a bipartisan show of support. This
legislation would organize a commission representing both political
parties comprising a panel with a representative of a reinsurance
company, an independent insurance agent, a representative of a
national realty company, a state insurance regulator, a physical
scientist, a homebuilder and others.
The commission would be accountable for making recommendations
on policies that would assist the Administration in facilitating
disaster preparedness, and reduce fraud and abuse in federal
repayment plans through FEMA and other government relief
agencies. Supporters are hopeful that H.R. 5891 will alleviate
related expenses to American taxpayers and allow victims of
catastrophes to begin rebuilding more quickly.
Mohawk to Change Carpet Warranty Policy
Beginning in 2007, Mohawk Industries will require that its
carpets be cleaned by Carpet and Rug Institute (CRI) approved
systems to keep warranties valid. The recent announcement cites
CRI’s Seal of Approval testing and certification program, which
establishes test methods and performance criteria for cleaning
products and equipment, including professional deep-cleaning
systems.
Currently, Mohawk’s residential warranties require that the
consumer show proof of periodic cleaning by a certified professional
cleaning service, requiring a minimum of one treatment every two
years.
The Seal program includes evaluation of vacuums, DIY extraction
systems and professional cleaning systems in part using technology
developed by the National Aeronautic and Space Administration
(NASA). To date, more than 50 cleaning agents and nearly 30
extractors have been tested and certified. Now several professional
cleaning systems are recognized as well.
Florida Cabinet Seeks Solutions to Commercial
Insurance Woes
Florida Governor Jeb Bush and members of the Florida Cabinet
have taken the necessary steps to reinstate the defunct Commercial
Property Joint Underwriting Association, which was disassembled in
1992.
The plan will reintroduce a statute, which was originally
introduced into law in 1986 (F.S. 627.351(5)). The statute was
designed to alleviate the rising cost of commercial property
insurance and to aid businesses that would otherwise be unable to
obtain property insurance through traditional private
insurers.
The plan was reintroduced in response to the escalating
number of complaints from businesses around the state seeking
assistance in obtaining commercial property insurance.
Subsequent to two successive
unparalleled
hurricane seasons, which caused
nearly $40 billion in insurance losses, the Cabinet has asked that
this plan be implemented by September 19, 2006, which is
considerably shorter than the 90 days it would normally take to
initiate similar plans.
Second Quarter of 2006 Hits Insurers
Hard
The first six months of this year were the fifth costliest
half-year on record for catastrophe claims, according to Insurance
Services Office, Inc. (ISO). Catastrophe claims for those months are
expected to cost insurers $3.7 billion, with the majority of losses
reported in Indiana, Tennessee, Texas, Kansas and Kentucky. All
claims were attributed to severe weather conditions.
ISO’s Property Claims Unit reported 13
catastrophic events so far this year, contributing to this year’s
second quarter losses. PCS estimates nearly one million claims
resulted from damage to personal and commercial property in more
than 24 states and the District of Columbia.
Losses this year are expected to continue to
impact insurers significantly, as policyholders attempt to rebuild
after the storms.
Forecasters Reduce Number of Hurricanes
According to forecasters at Colorado State
University, the number of tropical storms projected for
the 2006 hurricane season has been dropped from 17 to 15.
Landfall probabilities for the East Coast are quite high
said the report, due to a combination of factors such as changes in
ocean salinity and the Atlantic upper-air steering currents which
caused so many storms to come ashore last year. However,
statistically, the odds of seeing the number of landfalling
hurricane events experienced in 2004 and 2005 are very low despite a
more active storm season.
Additional updates on the Atlantic basin hurricane forecasts
will be issued on Sept. 1 and Oct. 3. The first seasonal hurricane
forecast for 2007 is expected to be issued in December.
Tornado Poll Finds BSCs Absorbing Increased Costs of
Fuel
A survey sponsored by Tornado Industries finds that building
service contractors (BSCs) are paying more for gas—as are all of
us—but are making few changes in the amount of driving they do for
business.
The survey, by AlturaSolutions e-Poll, a division of
AlturaSolutions Communications, was conducted online the last week
of June 2006.
Of 900 BSCs and facility service providers contacted to
participate in the survey, more than 140 responded. The survey has a
margin of error of plus or minus five points.
According to the survey:
· More than 40% of the respondents indicated their
costs for gasoline have increased 30% or more in the past
year.
· Almost 40% reported they have made some changes
in their business driving “but not much,” while about the same
number indicated they have made no changes in their business
driving.
· One-third of the respondents said they
are reducing their service areas; and 50% indicated
they are making no changes.
Research Institute Takes Position on Green
Cleaning
The Board of Directors of the Cleaning Industry Research
Institute (CIRI) issued a formal policy on the issue of green
cleaning.
"We commend the advocates of green cleaning for what they have
done for our industry," noted Jim Harris, CIRI Chairman of the
Board. "However, we are concerned that there are times when
decisions are made to go 'green' that can have an impact on the
actual cleaning process, resulting in a less healthy environment.
The goal of CIRI is to place cleaning practices on a solid
scientific basis, and then work with organizations like Green Seal
or Design for the Environment to ensure that the green practices
they recommend continue to provide effective cleaning and
sanitization."
The CIRI policy states: "The Board of Directors of CIRI
recognizes the momentum and importance increasingly being given to
eco-sensitive or environmentally friendly aspects of cleaning and
restoration, commonly referred to as 'green cleaning'. We are
closely following this trend and in consort with our newly
established Science Advisory Council, will be studying the science
and technology that underpins green cleaning."
RIA Briefs
RIA Welcomes New Staff Members
The list of professionals joining RIA’s headquarters staff
continues to grow. If you’ve called the office lately, chances are
that you’ve spoken to Leanne Bakken, RIA’s new receptionist and the
“voice” of RIA.
Leanne was raised in Massachusetts, but moved to Maryland
earlier this year. She has a background in interior design and
nutrition from attending the University of Massachusetts in
Dartmouth and Lowell, as well as Mount Ida College, and excellent
experience in customer service from several previous employers,
including a call center for a healthcare cost management company.
She can be reached at
leanneb@RIA.org.
The marketing and communications department has also added a
new staff member, Nyasa Broadus, who will be working with Patti
Harman. Nyasa has a strong background in marketing and will be
handling a variety of projects for RIA.
Nyasa grew up in Detroit, Michigan and relocated to Maryland in
1993. She earned a Bachelors of Arts in Communications from the
University of Maryland in 1998. Since completing her undergraduate
studies, she has worked in marketing, print media, and clerical
support positions, and is very knowledgeable on a multitude of
software programs. Nyasa can be reached at
nyasa1@RIA.org.
Dr. Spivak to Speak at CIRI Conference
RIA’s Technical Advisor on carpeting and textiles, Steven M.
Spivak, Ph.D., will be the featured speaker at an upcoming Cleaning
Industry Research Institute (CIRI-science) sponsored session at the
International Sanitary Supply Association (ISSA) International
Conference and Exhibition in Chicago, IL on Thursday, October 5.
According to Dr. Spivak, his presentation will look at both
“the advantages and concerns of using environmentally-friendly
products and cleaning systems.” He’ll also review recent
eco-products, trends and developments, and green certifications in
North America and Europe.
RIA Member Named Finalist in International Ethics
Award
RestorAid Disaster Services of Cincinnati, Ohio, a third
generation family-owned business, was named as one of 9 outstanding
business finalists in the 2006 Better Business Bureau International
Torch Award for Marketplace Ethics competition, recognizing the
value of honest and honorable business practices. More than 1,000
businesses competed in local Torch Award competitions, with only 100
qualifying at the international level.
For RestorAid, the acknowledgment is particularly satisfying
since they are the first recipient from the restoration industry to
ever achieve this high of an honor in the history of the award. The
company was previously named a Torch Award winner for the Cincinnati
Better Business Bureau.
In its consideration, RestorAid was evaluated against criteria
including commitment to and demonstration of ethical practices in
the marketplace; high standard of behavior toward customers,
employees, suppliers, shareholders and communities; truthfulness and
accuracy of advertising and sales practices; ethical reputation
among industry peers and communities in which they do business; and
training and communications programs to assist employees in carrying
out established ethics policies.
Environmental Conference Update
Registration materials for RIA’s Environmental Conference and
Exhibition on Nov. 1 in Denver, Colo. will be in the mail soon, so
watch your mailbox for specific details.
In the meantime, here’s a quick look at two of the sessions
scheduled for the conference:
Get the Lead Out: Avoiding Bad Faith in Lead Paint Removal
Claims
Presented by Bob Allen/Priority Services
Learn to avoid bad faith claims in lead paint removal cases by
increasing your knowledge of the effects of lead, both physiological
and psychological, and learning how to earn and keep the trust of
the insured, from the first interaction to the final
settlement.
Tackling Large Scale Environmental Remediation
Projects
Presented by Kevin Stamper, CMP/Regency Construction
;
Scott Stamper, CR/Regency Construction
Great opportunity brings with it great risk! How does the
restoration contractor with residential and light commercial
construction experience make the leap to major remediation projects
without getting bruised…or worse? Hear the Stampers relate the
hard-won knowledge of Regency Construction, a firm that recently
succeeded in taking on large-scale environmental work!
Weathering the Storm 2: Survival, Prosperity &
Market Leadership
We’re dotting the I’s and crossing the T’s for RIA’s
Restoration Conference and Exhibition, scheduled for Nov. 1-4. The
event kicks off with a joint exhibition with the Environmental
Conference, followed by a two-day core conference and two optional
sessions focusing on marketing and Xactimate 24.
Can’t miss topics for this conference include: Evaluating
Drying Options: Creating a Balance Between Effectiveness and Cost;
Expansion Options in a Shrinking Restoration Market; Fire…the
Forgotten Discipline During the Water Gold Rush Days; Business
Management Systems: Selection, Implementation, Application &
Evaluation; and Business Building Strategies for Dealing with the
People: Owners, Employees & Customers.
Don’t forget to make your flight and hotel arrangements for
both conferences, which will be held at the Grand Hyatt in Denver,
Colorado. Hotel reservations can be made online at
http://www.granddenver.hyatt.com/groupbooking/RIA
or by calling (303) 295-1234 or (800) 233-1234.
Advanced Upholstery Course Tackles Textiles &
Leather
Time is running out to register for RIA’s new three-day
advanced upholstery course in Philadelphia, Pa., September 7-9. The
course includes tours of two fabric mills followed by two days of
instruction by RIA Technical Advisor, Steve Spivak; Martin Gurian
of DesignTex, Inc.; and Patrick Dorgan of The Leather Institute, who
address cleaning expensive, specialty textiles such as leather,
plastic leather, microfibers and Jacquard woven fabrics.
For professionals seeking their Certified Fabric Specialist
(CFS) designation, this course completes parts 2 and 3 of the
three-part course.
AIHA Soliciting Submissions for AIHcE
The deadline for submitting presentations for the American
Industrial Hygiene Association’s AIHcE conference in Philadelphia,
Pa., June 4-6, 2007, is quickly approaching.
Submissions for presentations must be received electronically
by 5:00 pm CDT, October 3, 2006, and can be submitted for one of
several formats:
- Podium Abstract: An oral presentation limited
to 20 minutes that may be accompanied by slides
- Poster Abstract: A visual display
(approximately 8 ft by 4 ft) on fiberboard. The scheduling of
poster sessions includes a two-hour period during which the author
is in attendance to answer questions. The posters are unattended
but available for walk-by viewing for the remainder of the
four-day show
- EHS Crossover Presentation: Practical
information on non-industrial hygiene topics such as safety and
environment. One or two speakers (maximum) deliver a 60-minute
presentation
Roundtables: Individually developed session on
a timely topic, two to four hours in length, of a controversial or
informational nature.
Return to
Headlines
Toolbox Tips
Best practices for cleaning and restoration
professionals
Stickey, Gooey Museum Gel or Museum
Putty
By Steven M. Spivak, Ph.D.
What’s Clear Museum Gel, and how do you get it off textile
furnishings? At RIA we’ve been working on a problem involving the
tenacious residues of this product used to adhere ceramics, crystal,
ashtrays and vases, etc. to other hard surfaces. Increasingly
popular on boats and yachts, in homes near earthquake zones and
others, it’s known as “Clear Museum Gel – for Securing Glass and
Crystal.”
It’s also “removable, reusable and nontoxic.” A thick,
gelatinous viscous liquid, museum gel is normally removable from
hard surfaces. But when an item with this gel is being moved and
inadvertently placed upon upholstery or carpeting, its residue and
stain remain. The gel is widely available on the Internet from
Amazon, eBay and many others, selling at $11 for a 4 oz. jar.
So, what’s the problem? The sticky gel is formulated from an
organopolysiloxane. That is, it’s silicone-based and similar to a
flexible, durable silicone caulking compound. Once it air dries and
cools (or cures), it is relatively insoluble. RIA is working with
one of our members, and both will be trying stronger, more
aggressive volatile solvents to see if we can find one that can
provide stain removal.
We’ve contacted the supplier-distributor, reviewed their MSDSs,
and tried many different solvents to remove the gelatinous residue
from fabric; so far to no avail. The supplier suggested we “try dry
cleaning fluid,” but most dry solvents do little or nothing to move
the gel once it is stuck onto textile fibers and fabrics. If you
have experience with this product and its stain removal, please let
Dr. Spivak know. E-mail
ss60@eng.umd.edu.
Thanks!
Marketing Savvy
Entrepreneur.com has identified some of the latest trends when
it comes to marketing your business or services.
- Online Advertising – With audiences becoming more
multicultural and global, online advertising offers a cost-effect
means of reaching diverse markets around the world. With new
technology, ads can easily transition to blogs and podcasts.
- Target Baby Boomers – This market segment is more technology
savvy and open to new ideas than previous generations. Combine
their disposable income with their networking circles and it’s a
market worth tapping into.
- Utilize Creative Outlets – Spending on nontraditional outlets
has increased 12% since 2005 and advertisers are continuing to
earmark their budgets for unusual opportunities. Blogs, theatre
& valet tickets, t-shirts, and advertising on outlets in
airports are just a few of the new targets.
- Inspire Loyalty – Retain and reward existing customers by
increasing value and encouraging company/brand loyalty. Use
customers to promote your company through marketing campaigns,
webinars, trade shows and other testimonials.
Return to
Headlines
Product Spotlight
RIA Introduces New Consumer Flyer
RIA’s latest consumer flyer, “Pulled Wool is Bad Wool”
explains the differences between “good wool,” obtained from shearing
live sheep, and “pulled wool” or “dead wool” that is literally taken
from the hides of sheep during the slaughtering process. The use of
weaker pulled wool fibers in rugs and textile furnishings can cause
problems for cleaners and affect the appearance even after proper
cleaning. These flyers can be used to educate consumers on the
possible problems that can be encountered with this type of
wool.
Available to RIA members only
Pulled Wool is Bad
Wool Flyer: 100/$30
Consumer Flyers
Use these handy flyers to educate
your customers on a variety of cleaning and restoration related
topics. Each flyer provides the customer with an explanation of
various problems relating to cleaning and restoration.
Titles available (Please specify titles):
|
Abrash
Animal Stains
Backing Separation
Benzoyl
Peroxide
Carpet Installation
Cellulosic
Browning
Chewing Gum Removal
Code of Ethics
Color
Changes
Corn Rowing
Custom Made Rugs
Drapery
Damage
Dry Rot in Rugs and Furnishings
Dye
Bleeding
Flatwoven Rugs
Forgotten Spills |
Haitian Cotton
Latex Decay
Leather
Upholstery
Mildew Myths About Oriental Rug Cleaning
New
Furnishings
Odors
Odors and Color Problems in Area
Rugs
Painted Rugs/Bleeding Rugs
Protein Fires
Pulled Wool is Bad Wool
Reappearing Stains
Ripples
Rug Fringes
Rug Shrinkage
Sewer Backups
Shading
|
Shedding & Pilling
Silk Textiles
Smoke
Damage
Soil Filtration Lines
Soils
Spot Removal
Static
Stubborn Stains
Sunlight Damage
Textile
Insects
Texture Change
Thank You*
Vacuuming
Water Stains
Yellowing
|
*Designed for distribution for residential and commercial
customers, this flyer addresses health and safety issues related to
carpet cleaning. Now available in Spanish.
Available to RIA members only
Same Title:
100/$30
Full Set (100 of each title):
Set/$550
Thank You Flyers
Special Pricing
1000/$200
Return to
Headlines
On Press Now
Here’s a preview of what’s coming up in the September
issue of Cleaning & Restoration:
Positive PR: How Angel Marketing Helps More than Just
Your Company
By Keith Desserich
Creativity is a necessity for marketing in the digital age —
and when combined with “angel marketing,” a company has the power to
not only achieve free advertising, but also put its talents to work
for a good cause. Simply put, angel marketing is public relations
with a mission.
Marketing: When, Why and What to Expect
By Lisa A. Shenkle
Marketing encompasses the use of advertising, PR, media
relations, direct mail, Internet marketing, brochures and other
tools that make potential customers aware of the services and
products your company offers. But does your business have the “know
how” to establish and maintain a successful marketing plan?
The Root Causes of Poor Communication
By Sue Dyer
“Poor communication” is the issue most frequently identified by
project teams as a reason for their failures. And while poor
communication is a great deficit to a team, it is often merely a
symptom of other factors. Take a look to see what root causes
may be affecting your team — and learn ways to overcome those
problems.
Effective Marketing: The Power of
Communication
By Robert Kravitz
Microsoft has spent millions of dollars designing marketing
strategies as they’ve prepared to launch new versions of Windows,
and yet with all of their research, they have still encountered some
pitfalls in their plans. What is the missing ingredient that we can
learn from Microsoft’s endeavors?
Marketing Successfully with Television
By Karen Angel Clendening
Television has successfully marketed to millions of people and
has even proven to be a cost-effective strategy. But how do you know
if it is right for you?
Surveying Customers: A Two-Way Street
By John Fox
Surveys can be valuable to business owners in a variety of
ways: to learn more about their customers and to gain insights about
their companies and themselves. Read about surveying clients and, as
an added bonus, learn how your own personality type affects your
employees and customers.
2006 Buyer’s Guide…….Special Insert
Welcome to Cleaning & Restoration’s annual listing
of vendors and service providers for the cleaning and restoration
industry — the one-stop-shop for all of your business needs.
Columns
Commentary
Things Aren’t Always What They Seem
By Patricia L. Harman
Technical Topics
Flooring, Part 5: All Mixed Up
By Steven M. Spivak, Ph.D.
Restoration Corner
Protein Fires: The Odor Persists
By Martin L. King, CR, ASA
Environmental Matters
Our Role in the Bird Flu: What Every Restoration Company
Needs to Be Prepared For
By Gavin Baumgardner, M.D. and Keith Desserich
Legal Briefs
Guidelines to Investigating Harassment and Discrimination
Complaints
By Randi Klein Hyatt, Esq.
Marketing Notes
The Best Pitch – Part II
By John Fox
Technology Watch
Writing a Technical Report
By Darren Hudema, WLS
Business Briefs
What Works Best in Marketing
By Les Cunningham
©2006, Association of Specialists in Cleaning &
Restoration.
Return to
Headlines
INDUSTRY NEWS
"Home Depot, Seeking Growth, Knocks on
Contractors' Doors"
Wall Street Journal (08/07/06) P. A1;
Terhune, Chad
Home Depot launched its building supply unit, Home Depot Supply,
in an effort to boost profitability at a time when the
home-improvement retailer is losing market share to rival Lowe's
Cos. The company has bought more than 25 wholesale suppliers since
2004, spending $6 billion on these acquisitions. It now has over 900
supply branches nationwide, with plans to reach the 1,500 mark by
the end of the decade. Knowing that contractors favor strong
relationships with suppliers over lower prices, Home Depot Chairman
and CEO Bob Nardelli did not overhaul the acquired firms. Their
upper management, sales staffs, and internal cultures have been left
alone, and Home Depot has allowed them to keep their corporate name
and colors. By 2010, Home Depot Supply is expected to earn $25
billion per year and account for close to 20 percent of Home Depot's
sales.
(Web Link)
Return to
Headlines
"A Green Gem"
Waste News (07/31/06) Vol.
12, No. 7, P. 22; Renstrom, Roger
Tricycle Inc. was the Ecodesign gold award winner at this year's
Industrial Design Excellence Awards for its eco-friendly, digital
carpet sample system. An alternative to traditional carpet samples,
"Sim from Tricycle" involves carpet-sample-sized prints that
accurately showcase the fiber's color and pattern under a particular
light source. By issuing paper prints, Tricycle can ship out samples
in about 24 hours. These prints are fully recyclable and use 95
percent less energy and water than conventional carpet samples.
Tricycle also offers digital samples of furniture coverings and
floor surfaces, among other things.
(Web Link)
Return to
Headlines
"Dry Steam Vapor Marks
Progress"
Cleaning & Maintenance Management (07/06)
Bigger, Alan S.
There are several benefits to using dry steam vapor in the
cleaning process, says Alan Bigger, director of building services at
the University of Notre Dame in Indiana. By conducting various
tests, Bigger has discovered that very few or no chemicals are
needed. Additionally, over-spray and splashing are minimized because
only a small amount of water is used. The user-friendly equipment
can boost productivity by cleaning multiple surfaces and reducing
the need for corrective visits. The dry steam vapor systems tested
by Bigger were able to remove difficult carpet stains and burned-on
food from kitchen tools. The machines can also be used on restroom
floors, upholstered furniture, walls, and bathroom fixtures. Bigger
found that upholstered furniture was clean and dry in just 15
minutes. Any surface that can handle steam or moisture can be
cleaned using dry steam vapor, according to equipment manufacturers.
(Web Link)
Return to
Headlines
"What's Hot in Carpet"
Floor Covering
News (07/31/06) Vol. 21, No. 10, P. 1; Iannaco, Louis
In recent years, carpet mills and fiber producers have introduced
an array of higher-end textures, designs, and patterns to compete
with the increasing popularity of ceramic tile, hardwood, and
laminate. The effort is paying off, as customers are taking a new
look at carpet. Pattern remains the overwhelming favorite for
residential carpet, says Robin Tankersley of Masland Carpets and
Rugs. Tankersley notes that "average consumers are making choices
that include bolder colors and more patterns than they've
historically been comfortable with." Florals and other distinct
motifs, rather than abstract patterns, are hot at the moment because
consumers now view broadloom as a design element--not just a
backdrop, she says. Mike McAllister, vice president of marketing for
Beaulieu of America, adds that organic patterns are "used as a focal
point from which to decorate around," with greens, reds, and golds
being the most popular colors.
(Web Link)
Return to
Headlines
"Disclosure Rules Unmask Pollution
Costs"
National Underwriter (Property & Casualty - Risk
& Benefits Management Edition) (07/24/06) Anderson, Kenneth E.
U.S. companies' financial reporting of environmental liabilities
has been lax at best, but reports issued in 1992 by the Securities
and Exchange Commission (SEC) and other bodies revealed that 62
percent of registered firms had not accounted for known
environmental liabilities on their financial statements. A
Government Accountability Office report issued in 2004 could prompt
the SEC and the U.S. Environmental Protection Agency (EPA) to issue
financial reporting requirements for environmental liabilities. In
the Sarbanes-Oxley Act's Section 404, companies' auditors are not
allowed to sign off on internal or financial reports if alterations
are made to clean up reserves in previous fiscal years, according to
recent SEC guidance on the matter. The most significant regulatory
change with regard to environmental liabilities has been the passage
of the Financial Accounting Standards Board rule FIN 47 that
requires all firms to account for future environmental cleanup and
disposal costs, including the removal of asbestos, underground
storage tanks, and other liabilities. Risk managers must become
aware and familiar with these rules and guidelines in order to
develop effective environmental loss control and environmental
liability management strategies for their respective firms. These
regulatory changes will likely place a financial strain on many
firms.
(Web Link)
Return to
Headlines
"In Mississippi, Katrina Recovery Gaining
Steam"
USA Today (07/25/06) Copeland, Larry
In Mississippi, Katrina recovery efforts are making progress with
new bridges being erected and schools reopening, but many homeowners
continue to wait for money to rebuild. While many homeowners remain
in trailers and cramped conditions, progress continues as deep piles
of debris are cleared away. Meanwhile, the state and many homeowners
are still engaged in a legal battle with insurers over flood claims,
and the first of the trials is set to begin at the end of this
month. Other uncertainties face homeowners and builders in the
state, including possible building code changes, insurance coverage
capacity and pricing, and skyrocketing costs of building materials.
However, what is disheartening for many is that Mississippi's
progress has been faster than that in Louisiana, which was much more
devastated by Hurricanes Katrina and Rita than other areas along the
Gulf Coast. Experts contend that Louisiana's slow recovery has a lot
to do with debates regarding where debris will be moved, but others
contend the magnitude of destruction in the state is really the
culprit.
(Web Link)
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"Don't Slip-Slide Away"
Floor Covering
News (07/17/06) Vol. 21, No. 9, P. 16; Spivak, Steve
Dr. Steven Spivak, technical advisor to the Association of
Specialists in Cleaning and Restoration, believes retailers and
consumers need to keep friction and slipperiness in mind when
selecting hard-surface flooring. Knowing the product's coefficients
of friction is useful in determining how slippery the floor is when
wet or dry. This is important, considering that a growing number of
homeowners are extending their interior tiled floors to outdoor
areas. They need to be especially cautious when highly polished
surfaces are involved, as they can be treacherous to walk on when
wet. However, slips and falls can be minimized if the surface has a
rough or raised texture in areas that are prone to standing water.
(Web Link)
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"Ind. April Hailstorms Generate $560 Million in
Claims"
Insurance Journal (07/24/06)
Insurers in Indiana have received claims totaling $560 million
related to severe hailstorms that hit the state in April. The storms
caused severe damage to residents' roofs, gutters, and automobiles;
the majority of auto claims have been settled and the damage
repaired, but many homeowners are still deciding whether they want
to use their insurance claims to repair or replace their roofs. Some
of those who have elected to have the repairs done are pleased with
the outcome, noting that the damage caused by the hail has allowed
them to get a brand-new roof paid for almost entirely by their
insurers. The Indiana Consumer Protection Division said that most
policyholders were satisfied with the results of the claims process,
and very few complaints about failure to follow up on claims or
unscrupulous contractors were filed.
(Web Link)
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"Chemicals in Household Cleaners May Pollute
Indoor Air"
San Francisco Chronicle (07/19/06) Greer, Beth
Indoor air can be as much as five times more polluted than
outside air, says the Environmental Protection Agency. Dangerous
chemicals in cleaners may be to blame, with the Montana Department
of Environmental Quality estimating that the average person uses 25
gallons of harmful chemical products annually in their homes. The
department also notes that only 30 percent of the 17,000 chemicals
used in household products have been tested to determine their
health effects. Consumers look at the product's label to locate
ingredients; but the Children's Health Environmental Coalition says
inactive or inert ingredients that account for 90 percent of a
product's volume--such as solvents, dispersal agents, dyes, and
fragrances--are not listed on the labels. Many of these chemicals
can pollute air and water or cause cancer, allergies, asthma, birth
defects, and other conditions. Experts urge consumers to avoid
cleaning products that do not require scrubbing and opt for air
fresheners that derive their fragrance from citrus peel extracts.
Products containing non-chlorine bleach and natural cleansers like
white vinegar, salt, herbs, olive oil, and lemon juice are also
recommended.
(Web Link)
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"Mold Helps Spur Environmental Policy
Sales"
National Underwriter (Property & Casualty - Risk
& Benefits Management Edition) (07/24/06) Vol. 110, No. 28, P.
12; Tuckey, Steve
Nearly all commercial operations face some form of environmental
risk, and insurance carriers have increased the availability of
coverage from waste treatment plants to other businesses in order to
meet demand. There is limited pollution coverage within commercial
general liability and property policies, but many insurance carriers
exclude that coverage. Insurance brokers tend to be wary of pushing
additional environmental policies on their clients because they do
not want to lose them, but banks are now beginning to require the
coverage for companies to receive loans. Aon indicates that secured
creditor coverage can protect firms against environmental risks as
well, particularly in relation to banking or real estate
transactions, but it only covers the lesser of the payments--either
the outstanding loan balance or the remediation costs. Insurance
carriers often claim that environmental portions coverage is a
profitable line of business, but remediation coverage has been a
source of major losses. Meanwhile, mold claims, which many insurers
have excluded from general policies, have been difficult to assess
in terms of potential losses, but contractors have been urged to
obtain CPL coverage because it can be written in such a way to cover
mold. In order for brokers to best help their clients, they will
need to invest in classes regarding pollution, environmental, and
hazardous waste coverage, and once brokers are up to speed, they can
make better recommendations on what coverage will work best given
the safeguards clients have in place and what procedures are set up
for quick cleanup of pollution or water damages. Nevertheless, the
environmental coverage market is always changing to meet the latest
needs of clients, including the emerging issue of natural resource
damage claims.
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"Cleanup Set for Property Polluted by
Explosives"
Sacramento Business Journal (07/17/06) Lamb,
Celia
Alpha Explosives will undertake a $2-million cleanup of
groundwater at its Lincoln, Calif.-based explosives manufacturing
facility using naturally-occurring microorganisms. The company has
been ordered by the Central Valley Regional Water Quality Control
Board to eliminate perchlorate and nitrates in water 30 feet to 60
feet underground. Alpha Explosives could not afford to pump and
treat the polluted water, instead hiring hydrogeologist Bill
Thompson of Hydrometrics Inc. to recommend a less expensive
alternative. Sodium acetate will be injected into the ground, and
the carbon it contains will be used by microbes in the water to
break down the nitrates and perchlorate into nitrogen gas and carbon
dioxide, respectively.
(Web Link)
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"Natural Disasters Create Pollution
Hazards"
National Underwriter (Property & Casualty - Risk
& Benefits Management Edition) (07/24/06) Maier, Robert
Any natural disaster--hurricane, tornado, or earthquake--can
leave businesses vulnerable to environmental liability issues, not
just those considered to be catastrophic. Some of the environmental
liabilities awaiting businesses in the wake of disasters include
discharge of untreated wastewater, toxins from landfills and other
waste storage facilities, damage to underground or above ground
storage tanks, pipeline damages on land or sea, leaching of
chemicals and toxins, mold infestation, and many others. Not only do
businesses have to worry about cleanup costs, but they also have to
prepare for liability costs associated with defending third-party
claims, remedial enforcement actions, and other litigation. Risk
managers have to evaluate the potential environmental liabilities
based upon the nature of the business's operations and dealings.
Once liabilities are estimated, insurance should be garnered and
emergency and contingency plans developed to ensure that
environmental hazards are minimized. Also, there is a "long-tail"
associated with many environmental liabilities that can stretch for
several years in terms of claims and litigation obligations, and
firms have to be prepared for the potential public relations
downfall associated with these liabilities. Insurance products such
as pollution legal liability will only cover damages for cleanup
costs, property damage, and bodily injuries from an event happening
on the insured's property, while storage tank damages are covered
under a separate policy. Other products on the market include
contractors' pollution liability.
(Web Link)
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"Workshop Will Address Meth
Cleanup"
Coloradoan (07/13/06) DuBose, Khalida
The Northern Colorado chapter of the American Society of Home
Inspectors held a workshop on the cleanup of former methamphetamine
labs on July 13. The issue has been pushed to the forefront by two
pieces of state legislation passed earlier this year. A bill signed
into law in early May will force real estate agents and home sellers
to inform buyers and renters if a property was once used to process
meth. A bill passed in late March, meanwhile, mandates that former
meth labs be cleaned in accordance with state standards. Colorado
Brownfields Foundation executive director Jesse Silverstein notes
that fumes from meth labs can saturate drywall, furniture, carpets,
and other porous materials. Cleanup plans are created by
state-certified industrial hygienists based on the property's
contamination level, explains Silverstein. If the meth lab
contaminated one room, walls and fixtures would have to be removed.
However, razing and rebuilding is required when the entire property
is contaminated.
(Web Link)
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"No Major Lawsuits Filed Over Katrina's 'Toxic
Soup'--Yet!"
National Underwriter (Property & Casualty -
Risk & Benefits Management Edition) (07/24/06) Tuckey, Steve
Most of the environmental lawsuits and property-casualty claims
tied to Hurricane Katrina involve oil spills, according to a report
from David Bradford of Advisen Ltd. Observers had expressed concern
that the property-casualty industry would be hit hard as a result of
the so-called "toxic soup" created by the storm. Bradford notes that
the floodwaters contained numerous household, retail, industrial,
and soil-based chemicals; and the inability to pinpoint the source
has minimized claims and litigation. However, Bradford notes, "The
potential impact on the insurance industry is still a matter of
speculation, since most affected parties have not disclosed how
much, if any, and what types of environmental insurance coverages
are in place."
(Web Link)
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"What Happens When a Disaster Impacts the
Entire Economy?"
Claims (07/06) Vol. 54, No. 7, P. 20;
LoGiudice, Michael; Kessler, Steven
Over the next five years, the losses from Hurricanes Katrina and
Rita are expected to reach $100 billion for infrastructure damages,
$20 billion for temporary relief services, $70 billion for losses to
Louisiana's economy, and $10 billion in lost state and local
revenue. Business interruption claims are generally localized to one
firm, but with mega-catastrophes and terrorist events more than
likely to occur, insurers have to take into account economic
impacts, and whether they are prepared to cover those losses. The
disasters and their hefty losses could force some carriers to
exclude certain economic impacts from coverage, but unless clear
guidelines and policy language is established, legal battles are
likely to ensue between insurers and policyholders. There are
several theories that carriers and policyholders could use to
develop a clear measurement of true losses when an area is
devastated, including assuming the retailer able to maintain its
operations was not damaged while others in the region were, which
would account for the increase in one retailer's sales over the
losses experienced by the other firms--also known as the Island
Theory. However, businesses argue that repairs were indeed made to
the property and the firms should be allowed to maintain some of the
profits they earn as a result of those repairs and being able to
resume business more quickly than other firms in the damaged area.
Some insurers can avoid economic losses by inputting language that
requires the policy to only cover business interruption claims if
they result from physical damage to the property. In order for
policyholders to avoid disappointment, experts warn that they should
review their policies carefully to determine what triggers business
interruption coverage.
(Web Link)
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INC.
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