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Executive Report

Making a Difference

RIA is preparing its second assault on anti-competitive practices in the P&C insurance industry. In January, a new, tougher version of the Insurance Consumer Freedom of Choice Bill will be introduced in the Colorado legislature, and RIA will be the principal coordinator of efforts to get it made into law. As you may recall, the legislation is patterned on similar laws pertaining to automobile insurers and would curtail the practice of some insurers who require that their policy holders utilize only certain “preferred” vendors for claims work.

Some members have asked me why RIA is championing this legislation (well, all right, two have asked). The quick answer is that we do this to protect the competitive playing field so that consumers can choose the restorer of their choice and so that independent contractors can perform claims work to serve the best interests of their clients, the consumers, not of the insurance companies. But the longer answer is that we do this to preserve an industry.

When work is awarded without competition and compensated according to a schedule rather than according to project conditions, then restoration becomes an undifferentiated commodity. All work is the same, all quality of work the same. And when sameness pervades the industry, then all contractors will be the same: ill-prepared, poorly trained, semi-skilled laborers selling only their time and not their expertise.

Somewhere along the line, the insurance industry forgot about serving their policyholders. They forgot that restoration science was invented to save damaged properties from the bulldozer and to save insurance companies and their policyholders the substantial cost of rebuilding from base.

Most insurance companies are not so short-sighted, but enough of the market leaders are that substantial problems have emerged that hurt contractors and suppliers. Rather than sell the value of risk management services and manage their portfolios, they have elected to hike margins by chiseling on claims administration, even to the extent of forcing policyholders to terminate valid contracts.

The 2007 session’s efforts are going to benefit from better planning (in 2006 we had no advance notice of the bill’s introduction), from recruiting more allies among other business associations, and from a new governor, to mention just a few of our new assets. But we need more. We need RIA members to contribute to RIA’s Industry Defense Fund. More than $14,000 was spent in 2006, and the effort will require several times that amount in order to wage a credible fight. This is money that is not in RIA’s budget unless you give.

Good legislation begins with you, so give generously. This is the best moment in RIA’s history for members to make a difference.

Don Manger

Executive Director

RIA NEWS

Breaking News
RIA Briefs
Toolbox Tips
Marketing Savvy
Product Spotlight
On Press Now

INDUSTRY NEWS

"Insured Cat Losses Drop in Third Quarter: ISO"
"Understand Your Encapsulation Cleaning Solutions"
"Quiet Hurricane Season Marks 2006"
"Clearing Contaminants is Now Other People's Business"
"States Confront Meth-Lab Threat to Environment"
"Cleaner: School Has Mold Because Those at Top Ignored Report"
"Hurricane Katrina Insurance Claims--The Aftermath"
"Smelly Carpets, Meet Silver Ions"
"A Carpet of Green"
"Hawaii Damage Estimated at $73 Million, Possibly From Two Quakes"
"Mold Might Not Be Covered"
"Gone in 40 Seconds"
"Is Your Building Sick?"
"Paint Consumers Turn to 'Green' Options"
"High School Cleanup a Delicate Task"
"Asbestos Kept Off Global List of Toxic Substances"
"New Technology Makes Windows Self-Cleaning"
"The Best Offense Is a Good Defense When It Comes to Floor Care"

RIA NEWS

Breaking News

Haniel Sells the BELFOR Division

The Haniel Group has sold its subsidiary, BELFOR International GmbH, to the newly established BELFOR Holdings, Inc., which is headed by the current top management of the BELFOR Group. Haniel will retain an interest in the business with its 25 percent interest in BELFOR Holdings, Inc.

Sheldon Yellen will continue as the President and CEO, as will his European counterpart, Bernd Elsner, who is CEO of European and Asian operations.

The company will move its global headquarters from Duisburg, Germany, to Birmingham, Michigan, and the company will be incorporated in the state of Delaware.

BELFOR currently has 3,350 employees in 160 offices, in 27 countries. The company anticipates 2006 sales of approximately $1 billion.

“Repurchasing BELFOR gives us the opportunity to manage the continued growth of the company,” said Yellen. “We take great pride in our unsurpassed ability to put companies back in business and helping homeowners recover quickly after disaster strikes.”

NYC Janitors Struggle with Symptoms of ‘World Trade Center Cough’

Five years after the September 11 terrorist attacks, numerous janitors who cleaned office buildings near Ground Zero, have reported symptoms associated with “World Trade Center cough.”

World Trade Center cough symptoms include: dizziness, fatigue, shortness of breath, joint pain, sore throat, and in more extreme cases, scarring of lung tissue. The symptoms are consistent with those reported by hundreds of New Yorkers who lived and worked near Ground Zero. In the weeks following the attacks on the World Trade Center, nearby emergency rooms, reported a significant increase in respiratory illnesses. The dust near Ground Zero contained: concrete, dioxin, asbestos, glass, mercury and arsenic, and five years later, has a direct link to World Trade Center cough.

Initially, the janitors, who are typically uninsured immigrant workers, were unable to receive workers’ compensation and have in many cases lost their homes after losing their primary source of income. A handful of workers are now receiving regular workers’ compensation, and free healthcare services at area hospitals and clinics. At least 75 janitors have filed a $30-million lawsuit against the owners of the office buildings where they cleaned following the attacks on the Trade Center.

The City of New York’s Department of Environmental Protection (DEP) began monitoring the air quality in Lower Manhattan for asbestos, immediately after the September 11th attacks. According to the DEP, there is currently no outdoor ambient standard for asbestos. The U.S. and NYC standard for asbestos in the community and residential buildings is 0.01 fibers/cubic centimeter (f/cc) in indoor air. An indoor area which has had asbestos detected and then removed must show that air samples are at or below the 0.01 f/cc before the indoor area can be reoccupied. Outdoor areas surrounding Ground Zero have at times tested positive for asbestos levels twice as high as the acceptable 0.01 f/cc standard for indoor air quality.

Source: City of New York Department of Environmental Protection, Air Monitoring Page. 22 Apr. 2005. DEP. 8 Nov. 2006 http://www.ci.nyc.ny.us/html/dep/html/airmonit.html

Federal Judge Rules 9/11 Lawsuit Can Proceed

U.S. District Judge Alvin Hellerstein recently ruled that 3,000 emergency workers who filed suit against New York City as a result of health damages related to the cleanup following the Sept. 11 attacks on the World Trade Center, can advance in the courts.

The lawsuit claims that lack of proper breathing apparatuses during the 10-month long cleanup caused permanent lung damage to recovery workers. The suit names the Port Authority of New York and New Jersey, and hundreds of city contractors as defendants.

Judge Hellerstein opposed claims by the city and the Port Authority of immunity from negligence suits; which they initially filed in motions for dismissal. In his ruling he stated that while the city and the agency are provided some protection under U.S. state and federal laws, the degree of protection varied. Hellerstein went on to say that more information was needed prior to ruling on the level of liability.

Homeland Security’s Inspector General Investigates Insurance Companies

President Bush recently signed a bill into law that will allow Homeland Security to investigate the way in which insurance companies have handled claims related to Hurricane Katrina.

HR 5441 will allow Homeland Security’s Inspector General’s Office to scrutinize whether insurance companies have improperly attributed hurricane damage to flooding, rather than wind damage. Storm surge damages are not covered by insurance policies; however, wind damage is covered. Storm surge damages would be paid to policyholders who carry flood insurance and would be paid through the government-sponsored National Flood Insurance Program.

The Inspector General's Office has until April 1, 2007, to report conclusions of its investigation to Congress.

New Orleans Tops U.S. Most Vulnerable Hurricane Areas

New levees will do little to protect New Orleans should another category 3 hurricane hit. According to Dr. Stephen P. Leatherman, director of the International Hurricane Research Center at Florida International University, New Orleans tops the “10 Most Vulnerable U.S. Mainland Areas to Hurricanes” list.

Although the entire Gulf Coast is vulnerable to the impacts of another hurricane; “The Big Easy,” which rests partially below-sea level, would not fare much better than it did following Hurricane Katrina, when 80 percent of the city was flooded.

The Herbert Hoover Dike, which is adjacent to Lake Okeechobee, Fla., where the second worst hurricane disaster for loss of life occurred in 1928, was second on the list. The dike is leaking and has been declared to be in “grave and imminent danger” to the South Florida community surrounding it. An independent panel of engineers recently reported that the 142-mile-long dike that contains Okeechobee has a 50 percent chance of failing within the next four years.

Florida overshadows the list with 4 out of the 10 most vulnerable areas, but this is to be anticipated with its long coastal lines comprising both the Atlantic and Gulf Coasts.

Twelve criteria were used to estimate the vulnerability of U.S. mainland areas to hurricanes. Cyclonic energy (hurricane frequency and storm intensity) and levee/dike failure were primary determinants of vulnerability. Physical factors included storm surge and freshwater flooding potential, as well as coastal erosion trends and island breaching history. Socioeconomic indicators involved populations at risk, evacuation distance and routes, what's at risk and local/state capabilities to respond to major hurricane impacts.

The rankings are as follows:

1. New Orleans, La.

2. Lake Okeechobee, Fla.

3. Florida Keys

4. Coastal Mississippi

5. Miami/Ft. Lauderdale, Fla.

6. Galveston/Houston, Texas

7. Cape Hatteras, N.C.

8. Eastern Long Island, N.Y.

9. Wilmington, N.C.

10. Tampa/St. Petersburg, Fla.

State Farm Requests Change of Venue for Katrina Cases

Agreeing with a televised remark by U.S. Rep. Gene Taylor, D-Miss., half of southern Mississippi residents believe insurance executives are on par with child molesters. State Farm Mutual Automobile Insurance Co. is seeking a change of venue for lawsuits stemming from damage caused by Hurricane Katrina.

Hurricane Katrina caused more than $38 billion in destruction in the Gulf Coast region, resulting in countless lawsuits against insurers following the August 2005 hurricane.

State Farm, which is the largest homeowners' insurer in Mississippi, and other major insurance companies including Allstate Corp.; Nationwide Financial Services Inc.'s parent, Nationwide Mutual, Zurich Financial Services and St. Paul Travelers Cos. Inc. face about $20 billion in lawsuits from claimants in the southern region of Mississippi. The lawsuits claim that the carriers failed to pay the insures for their losses.

The company seeks to have the case venue moved to northern Mississippi, where Hurricane Katrina’s impact was minimal and policyholders are less biased against insurance companies.

State Farm commissioned a survey of 3,600 registered voters to support their motions, which the company says demonstrates that 88 percent of southern Mississippi homes were in some way impacted by Katrina, whereas only 12 percent of those in the northern part of the state were affected.

The company states that 49% of southern Mississippians agreed with Rep. Taylor’s statement, and that a fair trial is impossible considering the losses experienced by an overwhelming number of citizens in the southern region of Mississippi.

New Ruling Aids Flood Policyholders in Appeal Process

Flood insurance policyholders now have an official process to appeal decisions made by the National Flood Insurance Program (NFIP) under a newly published rule.

The recently enacted appeal system will require the Federal Emergency Management Agency (FEMA) to inform policyholders when it has received their request for an appeal and inform them of any additional information required.

FEMA will then review the appeal and investigate further before informing the policyholder and insurance carrier of any final decision.

Once a final determination has been made, the policyholder will be able to file an appeal on a claim, which must be received by FEMA within 60 days of the determination. Currently, policyholders can appeal any action of the insurer, FEMA employee, FEMA contractor, insurance agent or insurance adjuster.

The appeals process will not impose on the policyholders' rights to file suit should they feel it necessary to take the matter before a court.

Employers Could be Liable in Cell Phone Related Accidents

California’s State Assembly recently passed proposed legislation to fine California drivers who chat on cell phones, unless they use a hands-free device. Sen. Joe Simitian, D-Palo Alto, sponsored SB 1613, which was written in an effort to deter cell phone use. Studies have shown this causes drivers to be distracted and can lead to accidents.

“Cell phones and driving are a dangerous combination,” according to Simitian, “We know cell phones are a major cause of distracted-driving accidents.”

Several states have passed similar laws and 38 other states considered passing hands-free legislation in the past year.

Drivers who cause accidents while using cell phones not equipped with hands-free devices are likely to be liable for any related injuries or damages in states where legislation has been passed prohibiting cell phone use while driving. Companies requiring their employees to use a cell phone as part of their job can also be held responsible for any accident that may occur.

Under the law, employers can be held liable for employees under the superior doctrine known as vicarious liability. Employers are responsible for negligent acts or omissions by their employees during the course of employment. An employee who has an accident while working and talking on a cell phone could result in the employer being held responsible for any damages if the employer has authorized or encouraged the employee to make calls while driving.

Although legislation has yet to be passed in all 50 states, employers nationwide would be smart to implement written rules in employee handbooks or personnel files restricting cell phone use while driving to prevent possible accidents and resulting lawsuits. Employers are urged to consider limiting the job scope so that it prohibits cell phone use unless using hands-free devices.

The employer of an employee who causes an accident while using a cell phone against written policies might be able to defend a lawsuit by proving the individual went beyond the relevant job range.

However, implementing cell phone policies is only successful when enforced aggressively.

Zurich Settles Ohio Regulatory Charges for $7 Million

Ohio Attorney General Jim Petro and the Ohio Department of Insurance reached a settlement with Zurich American Insurance Co., resolving allegations that the company conspired with insurers and insurance brokers to eliminate competitors, inflate insurance premiums and mislead customers.

Without admitting guilt, Zurich, a unit of Zurich Switzerland-based Zurich Financial Services Group Inc., agreed to pay $5 million in civil penalties and $2 million to reimburse the state for attorney’s fees and investigative costs related to the lawsuit.

The company has also agreed to implement a comprehensive business practice reform and cooperate with ongoing investigations and class action lawsuits awaiting approval. The resolution calls for Zurich to pay nearly 79,000 of its business and government policyholders in Ohio their share from nationwide settlement funds, which exceed $209 million.

Dri-Eaz Announces Sale of Company
Dri-Eaz Products, Inc., has announced the sale of the company to two private equity firms in partnership with current Dri-Eaz management to promote the company's future development.

The new ownership structure will identify opportunities to build on Dri-Eaz's legacy and expand the business. "They've invested in Dri-Eaz to add value and grow the company," Dri-Eaz President Bill Bruders said.

"Dri-Eaz has been fortunate to enjoy a high level of customer loyalty. We want to honor that heritage and keep offering the best drying solutions for restorers," he added.

Dri-Eaz will continue to provide equipment and education for the water damage restoration industry, and maintain its headquarters and manufacturing facilities in Burlington, Wash., plus education and warehousing facilities in Nashville, Tenn., and Newport Pagnall, U.K.

RIA Briefs

Environmental & Restoration Conference Highlights

RIA’s recent Environmental and Restoration Conferences in Denver, Colo., earlier this month provided critical information on a multitude of topics related to the cleaning and restoration industry.

Attendees to the Environmental Conference heard firsthand some of the dangers and challenges involved in working along the Gulf Coast immediately following Hurricane Katrina. Because of the size of the affected area, preparation and multiple contingency plans were key due to the every-changing logistical and safety issues involved. Another presentation provided an overview of the current regulations nationwide regarding methamphetamine lab cleanups. While there are no federal regulations in place, state and local jurisdictions may update theirs as frequently as every 6 months. A complete recap of the Environmental Conference, will appear in the February 2007 issue of Cleaning & Restoration.

For anyone anxious to broaden the array of services their firm offers, the Restoration Conference provided several new ideas. From establishing themselves as expert witnesses for construction defects to providing creative solutions for moisture problems, attendees learned how their existing expertise easily translates into these new areas of opportunity.

One of the highlights of the conference was the Canadian Donnybrook, which debated the merits of using dessicants, LGRs and high heat for drying. The winner was Darren Hudema, WLS, from Dri-Eaz, who promoted the LGR position.

Round 2 of the Donnybrook will be at the RIA Convention & Exhibition in Orlando, Florida. For more highlights from the Restoration Conference, check out the March issue of Cleaning & Restoration.

Wanted: Members to Test Mold Protocol

Frustrated with a perceived lack of remediation education from your third-party inspector? Want a way to enforce quality and control costs? Need help with establishing a “final clean” benchmark? If you’re one of the hundreds of companies faced with these remediation difficulties, you might be interested in the Recommended Internal Quality Control for Mold Remediation (RIQCMR) initiative proposed at the recent Environmental Conference.

First proposed in 2004 as a peer reviewed paper in Professional Safety, this simple 6-step procedure recommended testing to confirm the quality of workmanship. While not advocating the absence of third-party testing, the RIQCMR focuses on the responsibility of the contractor to deliver a consistent and quality service. The initiative argues that quality assurance is a responsibility of the contractor for both liability and ethical reasons. In addition, it recommends that contractors utilizing the initiative specifically suggest the inclusion of a third-party test to confirm the findings for the customer.

Interested in participating? If you are a remediation company with mold credentialed personnel, you’ve taken the first step. If you have an air sampling device and knowledge of how to read mold spore results, you have the remaining parts of the puzzle. You are now ready to participate in one of the most important RIA mold initiatives. Be part of the growing trend and choose to make quality your proactive goal rather than the responsibility of a third-party consultant. While a work in process, the RIQCMR will only improve your awareness of remediation activities and invite your staff to take the same amount of accountability in a quality service.

For more information or questions on how to participate in RIA’s Environmental Council’s RIQCMR’s six-month initiative, contact keith@restoraid.com or map@wondermakers.com.

RIA Visits the Magic Kingdom

Speaking of the Convention, it’s not too early to start making your plans to attend Solutions – RIA’s 62nd Annual Convention & Exhibition. Hosted by the Buena Vista Palace Hotel & Spa inside Disney World, the 2007 Convention will offer more than 56 hours of continuing education through four different tracks: Environmental; Textile/Rugs; Restoration and Business; plus two keynote addresses.

On Wednesday, March 14th, there will be three, full-day education sessions: for those who want to explore a topic in-depth. Environmental Issues for Contractors, Successful Packouts; and a tour of the Mussalem Art Gallery in Jacksonville, FL.

Mark your calendar today and plan to attend the RIA Convention, March 13-16, 2007. Visit http://www.RIA.org/ for more information.

At Your Service

The benefits of membership are very real for RIA members. Two recurring benefits include referrals to member firms from a variety of sources including the referral programs with Ethan Allen Furniture Galleries and the Wools of New Zealand, and from calls and e-mails received by the RIA office. Each month, RIA receives 80-100 calls from consumers seeking carpet and upholstery cleaners, and referrals for water damage repair and indoor air quality issues.

Another benefit members receive is the high caliber of education offered through a variety of courses and seminars held across the U.S. These courses are taught by leading experts in their respective fields and provide invaluable, cutting-edge information, as well as practical, hands-on experience. Instructors may not promote their own products or services, or recruit students from the classes. Some students return to a class multiple times because they learn something new each and every time they attend.

RIA Promotes Consumer Freedom of Choice Bill

Since Colorado was the site of this year’s hard-fought contest for HB–1006– the Consumer Freedom of Choice Bill - RIA leaders took the opportunity before the Environmental & Restoration conferences to visit with the state’s legislative leadership. In a meeting with Rep. Dorothy Butcher, the Majority Whip and sponsor of the bill, RIA Executive Director Don Manger and RIA member Joe Arrigo, CR, WLS, explained to her the significance of the legislation and its impact on insureds nationwide.

HB 1006 was passed by both the Colorado House and Senate, and sent to the governor’s desk for his signature. He chose to veto the bill. In the next legislative session, Rep. Butcher has agreed to introduce another bill that is even stronger and more consumer friendly than HB-1006.

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Toolbox Tips

This month’s Toolbox Tips come to you courtesy of RIA’s Restoration Conference.

Removing Smoke Residues

Smoke residue is acidic in nature and can damage metal surfaces or discolor a variety of materials. While water is used to put out fires, when it combines with the smoke residue, it takes the odor and smoke further into materials affected.

Soot becomes harder to remove over time and is attracted to metal surfaces such as plumbing pipes, nail and screw heads, vapor plating on electrical conduit, and even simple things like coat hangers. Smoke damage to materials is exacerbated when body oils combine with the smoke residues. It takes some experimentation to determine the most effective methods for soot removal.

Recommendations for cleaning fire-damaged structures:

Remove dry, loose soil first
If the soil sits on the surface, don’t rub it in
Clean the structure from top to bottom
Clean from the worst damaged to the least

Recommendations for cleaning contents:

Prioritize processing according to type of surface and sensitivity to soot contamination
Triage severely damaged items
Segregate surfaces according to the degree of contamination
Vacuum onsite prior to touching, packing, or moving the items using a variety of vacuum tools

Handling Tips:

Pre-clean first
Carry items as they are to minimize soot dispersal
Don’t unfold items
Move documents in stacks
Avoid exerting pressure on the items

Information courtesy of Cliff Zlotnik, CR, WLS, CMH, and his presentation: Black Magic, Myths & Methods.

Marketing Savvy

Loyalty Programs not Always Profitable

When offered an opportunity to get something for free if they purchase more frequently, do customers increase their purchasing? A Stanford Graduate School of Business study of purchasing behaviors for golfers suggests businesses could be wasting money on reward programs that don’t pay off.

Assistant professor of strategic management, Brian Viard, said, “The question is, do reward programs get customers to buy more often after they accumulate a lot of credits toward the reward?” Data gathered over a year from a southern California golf course, showed that customers offered an opportunity to get a free round of golf for every ten games played were not motivated to play more often to receive the free round.

Data showed a small percentage of golfers escalated the quantity of games played with the enticement of a free round of golf. However, the golfers who play more often and accounted for most of the courses’ revenue did not play more frequently when approaching the free round. “When the most frequent players got close to the reward, they didn’t show any signs of hurrying up their last few games to get the free round, but rather just steadily plowed through the program,” Viard said.

The same data did demonstrate that infrequent players who participated in the reward program accelerated their participation in the program as they closed in on the free round. “By the time they were 80 percent of the way there, everything had changed for them,” said Wesley Hartmann, assistant professor of marketing.

Hartmann and Viard’s research suggests that frequent flyer programs benefit business travelers and those who have enough income to fly more frequently.

Should the results of their research become widely accepted; companies will have to consider if the revenue spent on reward programs could be better spent in other marketing areas.

Source: Stanford Graduate School of Business

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Product Spotlight

RIA Leather Guide

Special Purchase by February 1, 2007 and save $50.00

MEMBERS: $195.00
Non-Members: $295.00

To receive this special price orders must be received by February 1, 2007, in order to meet production deadlines. Orders will be shipped on or before March 31, 2007.

Pricing AFTER February 1, 2007:
RIA MEMBERS: $245.00 each
Non-members: $345.00 each

Additional Guides pricing: Buying more than 2 guides?

Save an additional $25.00 on each guide purchased.
2 or more Guides: Purchase your first Leather Guide at $245.00 and deduct $25.00 off each additional Leather Guide you purchase.

Order here: Leather Guide

2nd Edition RIA Guidelines for Fire & Smoke Damage Repair
Formerly, the NIDR Guidelines, the RIA Guidelines have been revised and expanded with updates, new material, a more extensive glossary, an index and the new RIA Code of Ethics. This valuable reference manual defines the relationships of restorer-client-adjuster, and provides a basis for the proper training of estimators, project managers and insurance claims personnel.

Members: 1-4 copies $45 each
Nonmembers: 1-4 copies $55 each
Call for pricing on greater quantities

Order here: RIA Guidelines

Upholstery Cleaning Manual

Written by the RIA Technical Staff, this training manual takes your employees through the upholstery cleaning process step-by-step. Eight sections cover topics including pre-inspection, dry and wet cleaning techniques, finishing and after care treatments. A special section addresses potential problems such as browning, color bleeding and pile fabrics. Bound in an attractive 3-ring binder, this manual can be a valuable part of your training program

Members: $75 ea

Non-Members: $125 ea

RIA Light-Up Pens
These pens are made to write in low light or dark areas easily, and perfect for taking notes in dark presentations and writing at night. They write like regular pens. Push the button on the top to turn on the blue light, and twist the barrel to use the ballpoint pen. You could even twist off the cap and use it as a mini-flashlight. Batteries are included.

$5 per pen

Order here: http://www.RIA.org/resourcelibrary/marmaterials.cfm#training

These and other RIA products can be found at http://www.RIA.org/resourcelibrary/marmaterials.cfm.

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On Press Now

Here’s a look at what’s coming up in the December issue of Cleaning & Restoration magazine.

Fire Chemistry 101: Fire Losses & Electronics Restoration

By Lawrie Hollingsworth, E.E.

Fires can be devastating, especially when electronics are involved. Of all the common materials that burn in a fire, plastic has the potential to do the most damage on electronics by releasing hydrochloric acids that leave corrosive acids on all surfaces. So when fire disasters strike, what is the best course of action?

Creating an Effective Containment

By Neil McManus, CIH, ROH, CSP

Containment is frequently used when tackling issues within the building restoration industry. Depending on the type of damage involved containment can be very effective when used properly, but there are many considerations to keep in mind.

Orlando Hosts Solutions Convention

By Gail A. Boyes

With the RIA Convention only three months away, it is never too early to begin making travel plans. In addition to educational and networking opportunities, Orlando is overflowing with entertainment options for the entire family. From swimming with the dolphins to visiting Emeril Lagasse’s new restaurant, this is more than your average convention — it’s an opportunity of a lifetime.

Five Easy Steps to Bring Your Presentations to Life

By Jerry Weissman

One of the great burdens in the business industry is presenting information through the use of number slides — without putting your audience to sleep. Is it possible to communicate important information through a slide presentation while maintaining the interest of your listeners?

Columns

Commentary

The Value of Education

Technical Topics

New Leather and Simulated Leather Upholstery Guide

Restoration Corner

Avoidable Risk

Environmental Matters

Mold Stumped?

Marketing Notes

Giving Versus Getting: A Proven Recipe for Lasting Success

Business Briefs

The Real Cost of Attending the Convention

Not a subscriber? Then visit http://www.RIA.org/buyersguide/index.cfm.

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INDUSTRY NEWS

"Insured Cat Losses Drop in Third Quarter: ISO"
Business Insurance (11/02/06) Hofmann, Mark A.

The Insurance Services Office, Inc.'s Property Claim Services unit reported that U.S. catastrophe costs dropped from $48 billion in 2005's third quarter to $971 million this year. In 2006, seven catastrophes generated about 280,000 claims, and Minnesota was listed as the state sustaining the most damages, totaling about $200 million.
(Web Link)
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"Understand Your Encapsulation Cleaning Solutions"
Cleanfax (11/06) Warner, Mark W.

Carpet-cleaning has evolved regarding encapsulation chemistry to be able to clean carpets while leaving minimal to no resoiling. The most recent breakthrough using third-generation solvents and surfactants eliminates the remaining dirty slurry, which is when chemical residues mix with soil. However, it does leave a dry powder residue, and this can be vacuumed out in what is called the "dehydration phase cleaning." In early carpets, natural fibers were found to have crags and grooves that caught soil during the cleaning process. Carpet cleaning with soap evolved to use a wax-like compound thought to fill in those grooves, thereby preventing immediate resoiling of a cleaned rug or carpet. Unfortunately, this process would reduce a carpet's ability to reflect light and shine, and so multiple cleanings often "uglied" a carpet. The technology progressed to using detergent encapsulation, and in the 1980s, second-generation solvents and surfactants greatly improved the carpet cleaning process, but still left a dirty slurry on carpets. Deep restorative cleaning of heavily soiled carpets remains a highly experimental, but progressive science.
(Web Link)
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"Quiet Hurricane Season Marks 2006"
USA Today (11/07/06) O'Driscoll, Partick

Despite meteorologist predictions of about 17 storms this hurricane season, the 2006 season was calm with only about nine named storms. Officials claim that although there are three weeks left to the season, it is pretty much over. Scientists note that shifts in atmospheric pressure over the Atlantic Ocean coupled with the effects of El Nino in the eastern Pacific Ocean led to the calm storm season. The calm season has been a blessing for those regions still cleaning up from hurricanes Katrina and Rita, but emergency preparedness officials note that cities along the coast should not let down their guard. In fact, forecasters note, "The high cycle of Atlantic hurricane activity is probably going to go for another 20 years."
(Web Link)
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"Clearing Contaminants is Now Other People's Business"
Boston Business Journal (10/26/06) Vol. 26, No. 38, P. 49; Sakakeeny, Stephen A.

Under amendments to the Massachusetts Contingency Plan that were implemented in April, companies are now required in some instances to inform third parties that they are in the process of cleaning up contaminated properties. Those most affected by the site's pollution must be given access to the results of environmental tests and told that their properties are part of the disposal site due to their proximity to the polluted area or the fact that tests were performed there. Additionally, third parties whose health, safety, or welfare are impacted by the pollution must now be notified in writing of actions to be taken to remedy hazards. Supporters of the amendments believe anyone directly affected by pollution needs to know they are at risk, but companies undertaking cleanup projects worry that the notifications will make them vulnerable to lawsuits.
(Web Link)
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"States Confront Meth-Lab Threat to Environment"
Christian Science Monitor (11/08/06) P. 2; Arnoldy, Ben

The U.S. Drug Enforcement Agency estimates that more than 100,000 sites nationwide have been used to manufacture methamphetamine, but Joseph Mazzuca of Texas-based Meth Lab Cleanup Co. suspects that there are many more that have not been reported to authorities. Mazzuca estimates 1.5 million meth labs across the county, adding that fewer than 1 percent have been cleaned up. Experts say meth labs need extensive decontamination, as the chemicals used to make the drug are believed to linger in the area and on surfaces and can cause skin and respiratory ailments, among other conditions. Colorado is among the few states that have enacted legislation that mandates safety assessments and additional cleanup as needed, while others simply require home sellers to tell buyers that the property was once used as a meth lab. On the federal level, the Environmental Protection Agency has included former meth labs in its definition of brownfields and plans to release standards governing cleanup by 2011. Already there are numerous businesses to handle decontamination, which involves removing furniture, carpets, drapes, and other items; replacing drywall; and scrubbing ceilings, walls, and other surfaces.
(Web Link)
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"Cleaner: School Has Mold Because Those at Top Ignored Report"
Portland Press Herald (Maine) (10/31/06) Harkness, Seth

Biddeford, ME, School Department consultant Mark Coleman of Biosafe issued a preliminary clean-up plan for Biddeford Primary School, which was later modified by the department in order to reduce costs. In Biosafe's initial report, the school was advised to remove portions of carpeting to prevent mold growth, but the school hired another cleaning firm to shampoo the carpets. The report indicated the use of high-temperature steam cleaners, which kill mold, and drying methods to quickly remove water from the carpets. These recommendations were ignored, according to Coleman. Instead, the school closed the facility over a hot weekend, which allowed mold to grow and become a pervasive problem. Since the growth of mold has continued despite Biosafe's efforts to remedy the problem, the school department has threatened legal action to recoup some of the $200,000 spent on mold remediation. Coleman denies liability given that his original recommendations were ignored by school officials.
(Web Link)
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"Hurricane Katrina Insurance Claims--The Aftermath"
Claims (11/06) Preus, Christian A.

Many legal issues pertaining to insurance claims have emerged since Hurricane Katrina ravaged the Gulf Coast. On Sept. 15, 2005, two lawsuits relating to homeowners insurance policies were filed--the first by Mississippi Attorney General Jim Hood against five of the state's largest homeowners insurers, and the second, a class-action suit in Louisiana against 15 insurance companies. Both suits are progressing slowly and both are expected to have little effect on Katrina victims. The Mississippi suit claims that flood and water exemptions are invalid because they violate state public policy, but since the suit only focuses on the wording of certain exclusions in homeowners policies, it is unlikely to have an impact outside the state. The Louisiana suit claims that flood exclusions are invalid because the damage was caused by negligent levee construction, but the circumstances are so unique that even if the court decides against the insurers, the case will probably not have much of an effect anywhere else. Additionally, the Louisiana Senate has passed a bill requiring insurance adjusters in Louisiana to evaluate homeowners' claims using more than floodwater marks, and Mississippi suspended its 180-day deadline for Katrina victims to make repairs or give notice of intent to make a claim. However, for the most part, Katrina-related claims have been handled the same as other claims.
(Web Link)
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"Smelly Carpets, Meet Silver Ions"
Wall Street Journal (10/20/06) P. W10; Fletcher, June

Textile manufacturers have developed a variety of new technologies that neutralize odors using re-engineered materials in order to satisfy an increased demand for odor-free homes. The products may help invigorate the $4.4 billion air-care industry, which saw its sales rise less than 5 percent last year. Home Depot's Puresque carpet, which costs the same as a regular carpet, uses salts chemically bonded to the rug's fibers to trap and destroy odors. Milliken & Co. outfits all its carpets and fabrics with odor-fighting ions, and Interface's FLOR carpet tiles contain bacteria-inhibiting microbes. Crypton markets its tightly woven fabrics that are resistant to moisture, stains, and bacteria primarily to pet owners. Biocides that use electrically charged silver ions that kill odor-causing microbes by interfering with respiration and destroying the cell wall are becoming increasingly popular for fabrics and upholstery. Fabri-Zyme's Odor-Ace uses embedded enzymes to combat stains and smells in carpeting, and Proctor & Gamble's Febreze destroys air-borne bacteria and releases a strong, more pleasant scent.
(Web Link)
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"A Carpet of Green"
Plant Services (10/06) Kennedy, Sheila

Environmentally-friendly flooring initiatives are recognizing companies that do their part to help the ecosystem by eliminating toxic ingredients or the need to strip and recoat the surface on a regular basis. The nonprofit organization Green Seal has developed the voluntary Green Seal Environmental Standard for Floor Care Products, which gives its "green" seal of approval to floor strippers that contain no more than 6 percent of volatile organic compounds, among other certifications. Later this year, Green Seal will launch the Green Seal Cleaning Services Standard that will certify indoor cleaning services that aim to minimize indoor air pollution. On the federal level, the Environmental Protection Agency puts its Design for the Environment program logo on floor-cleaning products whose ingredients are not deemed as hazardous as other chemicals used for the same purpose. There are also numerous local standards, such as California's Proposition 65, which requires the state to make public carcinogens and chemicals responsible for birth defects, and forces workplaces to issue warnings if numerous chemicals are in use. Proposition 65 has spurred the development of cleaners that do not contain chemicals on the list.
(Web Link)
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"Hawaii Damage Estimated at $73 Million, Possibly From Two Quakes"
Insurance Journal (10/20/06)

Preliminary damage estimates related to the earthquake in Hawaii are set at $73 million, and federal aid is on its way to help repair the disaster area. About $43.5 million in damages were sustained by schools alone, with another $7 million in damages reported at the Kawaihae harbor. While many homeowners have indicated that their homes were not damages in the quake, some recently discovered water leaks in their homes when rain storms arrived on the Big Island. Disaster assistance will be made available to Hawaii, Oahu, Kauai, and Maui counties for debris removal and other needs, though individuals have not been slated to receive aid as of yet. Scientists are also investigating whether a second quake hit the islands, though initial reports indicated that the 6.0 magnitude quake was an aftershock of the 6.7 magnitude quake recorded earlier. Researchers indicated that an examination of the tremors in the coming months will reveal more about whether the 6.0 quake was a separate event or not.
(Web Link)
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"Mold Might Not Be Covered"
Milwaukee Journal Sentinel (10/18/06) Derus, Michele

Reacting to a multimillion-dollar jury award in 2001, U.S. property insurers in the past few years have inserted mold-damage exclusions into the general liability and homeowners' policies that they offer. The changes, though largely unnoticed by the public, are widespread, according to American Risk Management Resources Network President David Dybdahl, who claims insurance firms "blasted through more policies than anything in history--faster than terrorism, asbestos or pollution." Speaking at a seminar on mold issues sponsored by the Milwaukee Lead/Asbestos Information Center this week, Dybdahl predicted that mortgage lenders--which he argues stand to "lose everything"--will focus more on mold exclusions as they begin to record losses in the Gulf Coast following the destruction caused by Hurricane Katrina last year. "We've got 100 million mold exclusions out there," he estimated, "and bankers who think they have all-risk insurance but don't."
(Web Link)
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"Gone in 40 Seconds"
BestWeek (10/16/06) No. 42, P. 1

A new report by A.M. Best Co. predicts that a 7.6-magnitude earthquake would cause more than $100 billion in insured losses in San Francisco, hitting insurers with minimal capital reserves the hardest. Damage caused by the resulting fires, landslides, sinkholes, and tsunamis could reach new records; the city could be obliterated in a matter of seconds or minutes. Severe earthquakes have the potential to hurt the economy, as there would be substantial uninsured losses because earthquake insurance is typically overlooked by property owners. Chicago, Philadelphia, Tokyo, and Vancouver would also be vulnerable to large-scale devastation in the event of an earthquake.
(Web Link)
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"Is Your Building Sick?"
CM-Cleaning & Maintenance Management (10/01/06) Entin, Jeffrey G.

Positive indoor air quality in office buildings is crucial in maintaining a happy, productive workforce and avoiding "sick building syndrome" in a worst-cast scenario. A preventative cleaning and maintenance program for buildings is recommended by EPA to keep indoor air quality (IAQ) at peak levels. A regular cleaning and maintenance schedule can reduce air pollutants in buildings between 50 percent to 90 percent, says the EPA. A further challenge for buildings designed from the 1970s during the U.S. energy crisis, is the use of sealed outside envelopes and sealed windows to conserve energy, which also traps non-circulating air. A combination of mixing indoor and outdoor air, and using an HVAC system to remove indoor pollutants is considered a best practice. The EPA recommends a three-pronged approach: Removing pollutant sources from a building, filtering air for pollutants, and using ventilation to dilute indoor polluted air. Reducing toxic levels in cleaning fluids by choosing effective but less toxic building cleaners is a solid step to improve indoor air quality. Among the most commonplace indoor pollutants are bioaerosols (molds, bacteria, viruses, and fungi that can be distributed throughout the environment by air currents), organic chemicals (such as methane, CO, and CO2), inorganic chemicals (ammonia, chlorine bleach, hydrogen sulfide, silica, and paint or ink pigments, to name a few) and particulates (pieces of organisms and inert airborne materials). The IAQ and indoor environment can be improved substantially with the use of modern cleaning methods and by paying heed to maintenance schedules. Complaints from building occupants about IAQ or other health concerns should facilitate a rapid response from management, while property managers and cleaning and maintenance staff who currently use schedules may want to re-check them to make sure that procedures for ensuring good IAQ are present. Finally, the EPA encourages management, cleaning, and maintenance people to obtain additional information concerning the prevention and control of indoor air pollution and the safeguarding of IAQ.
(Web Link)
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"Paint Consumers Turn to 'Green' Options"
Calgary Herald (10/12/06) P. NA12; Gray, Donna

Homeowners looking to spruce up their walls are turning to safer, environmentally-friendly paints that do not contain petroleum-based elements, volatile organic compounds (VOCs), formaldehyde, and other pollutants. Low-VOC paints are odor-free and safer for use near children and seniors, who often cannot handle the fumes associated with traditional latex and acrylic paints. Suzette Toews of Canadian-based Interior Evolution recommends low-VOC paints for use in hospitals and schools, as rooms can be used as soon as the paint dries. Low- or no-voc paints are typically made from powdered milk, clay, linseed oil, citrus oil, or other natural or recycled ingredients. However, consumers have fewer colors from which to choose. There are also numerous thinners and stripping agents on the market that do not contain dangerous solvents.
(Web Link)
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"High School Cleanup a Delicate Task"
South Coast Today (MA) (10/14/06) Nicodemus, Aaron

Officials in New Bedford, Mass., report that removing dust containing polycholorinated biphenyls (PCBs) from a local high school will be a lengthier than anticipated process because the project is unique and requires precise remediation. PCBs were uncovered in New Bedford High School's ductwork, window caulking, and other components in August. New Bedford director of environmental stewardship Scott Alfonse says a cleanup plan that will include safeguards and monitoring, among other details, was deemed necessary. "We couldn't, in good conscience, just hire a (heating, air conditioning and ventilation) contractor to go in there and undertake the job," says Alfonse. TRC Environmental Corp. has been hired to formulate the cleanup plan, choose and monitor a contractor, and take indoor air samples following the cleanup. The possibility of airborne dust has made cleaning the ducts the school's first priority. Two classrooms have been closed, but the remainder of the school is being used. Alfonse notes that the duct cleaning will be performed on weekends and holidays when students and staff are not in the building.
(Web Link)
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"Asbestos Kept Off Global List of Toxic Substances"
Business Insurance (10/13/06)

The United Nations opted to leave chrysotile asbestos, a known human carcinogen, off its global list of toxic substances. While asbestos is no longer common in Western nations, it is still used in developing nations in construction projects, primarily as an additive to cement. About 90,000 people die annually from asbestos exposure, but the Rotterdam Convention was unable to come to a consensus on the substance. At the forefront of opposition to its inclusion was Canada; Quebec is the largest asbestos producer and exporter.
(Web Link)
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"New Technology Makes Windows Self-Cleaning"
Jacksonville Business Journal (09/11/06) Mattson, Marcia

EverClean Technologies is using nanotechnology to create self-cleaning windows. The Palm Coast, Fla.-based company offers EverClean Solution, a microcrystalline coating that contains titanium oxide and peroxotitanic acid. Sprayed on the outside of the window, the coating breaks down dirt, pollen, and other organic matter and minimizes surface tension. The dirt is removed by rain or by hose, and no spots remain after the surface dries. Businesses and homeowners pay $3-per-square-foot to have the coating applied. EverClean President Vincent Valles, Sr., also owns Dur-A-Shield International, which offers a coating that makes a building's exterior resistant to such things as dirt, mold, and acid rain.
(Web Link)
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"The Best Offense Is a Good Defense When It Comes to Floor Care"
CM-Cleaning & Maintenance Management (10/01/06) Weber, Mike

Long-lasting floor finishes, in combination with a thorough cleaning and maintenance program, can save the end user upwards of $15,000 per 100,000 square feet during the first year. Durable finishes also save time on stripping, refinishing, burnishing, and buffing. In addition to shine, soil-resistance and wear should be considered when choosing a finish. In regards to maintenance, mats should be used to keep soils off the floor, which should be dust mopped prior to damp mopping. An auto-scrubber or a walk-behind wet vacuum could replace traditional wet mops, as they are good at eliminating--not simply spreading around--particulate matter.
(Web Link)
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November 2006