Leisure Entertainment Fact Sheet

Embed Size (px)

Citation preview

  • 7/30/2019 Leisure Entertainment Fact Sheet

    1/13

    ACE Global Engineering NetworkLeisure and Entertainment Industry

  • 7/30/2019 Leisure Entertainment Fact Sheet

    2/13

    Contents

    Occupancy Overview 1 - 2

    Special Hazards 3Fire Department Focus 3Decorations 3Exhibition Halls 3Kitchens 3Housekeeping 3Electrical Wiring 3Theatres 3Storage Areas 3Stage Effects 3Access 4Fire Protection Systems 4Common Areas of Concern 4Major Exposures 4

    BI and Contingent BI considerations 5

    Industry Trends 5

    Requirements 6 - 7

    Loss Estimates 8

    Industry Benchmarking 9

    Industry Loss Information 9

    ACE Contacts 10

    Reference Sources 10

    ACE Global EngineeringNetworkLeisure and Entertainment Industry

  • 7/30/2019 Leisure Entertainment Fact Sheet

    3/13

    Occupancy Overview

    The Leisure and Entertainment industry segment

    has various types of occupancies including eating

    and drinking places (pubs, restaurants, night clubs,

    fast food etc.), casinos, sporting venues,

    amusement parks, arenas, stadiums, cinema

    complexes, museums, entertainment centres andcultural facilities.

    This cross-over of segments is clearly illustrated

    when considering the occupancy code for casino

    hotels on the Las Vegas model. A casino hotel enjoys

    a property class 9. Typically these properties include

    a modern hotel (class 9), casino (class 3), dinner

    theatre (class 3), restaurants (class 3), fitness centres

    (class 4), bars and lounges (class 3), convention

    centres (class 5) and amusement arcades (class 2).

    In fact the changing nature of the leisure and

    entertainment industry means that these occupancy

    types will more frequently be found as an integral part

    of much larger occupancy or industry typAs with any

    other business segment, there are good and bad risks

    within each group. For large value risks the focus

    should be on venues and facilities of mostly

    non-combustible construction, reliable automatic

    fire suppression and detection systems, good water

    supplies, sufficient fire hydrants in close proximity*

    and a reliable fire department. The facilities should

    have good loss prevention management programmes

    in place, good preventative maintenance programmes

    for building, plant and equipment, strict housekeeping

    standards and adequate security measures.

    O

    Risks of lesser values should still include mostly

    non-combustible construction although this may

    not be essential providing other risk management

    factors are present. Ideally premises should have

    fixed fire suppression and detection systems in place.

    Good management programmes are essential.

    *The evaluation of water supplies does include the need

    for hydrants in the vicinity of the building but, as leisure

    and entertainment complexes can be very large sometimes

    covering thousands of square metres, it is important that

    extra attention is paid to the adequacy of fire hydrant

    coverage. Without adequate fire hydrant coverage in the

    largest of these complexes long fire hose runs will be

    necessary and this will delay the start of fire fighting

    operations resulting in greater property damage.

    ACE GLOBAL ENGINEERING NETWORK LEISURE AND ENTERTAINMENT INDUSTRY

    1

    Description ICC NAICS ATC Occupancy Code Class

    Eating and Drinking Places

    Restaurants 5812 722110 8 4

    Fast Food Outlets 5812 722211 8 3

    Takeaways 5812 722211 8 2

    Bars, Pubs, Taverns if music and dancing see Discotheques, 5813 722410 8 4Group V111

    Places offering adult entertainment 5813 722410 8 Decline

    Casino Stand-Alone

    Casino Purpose Built conversions should be equivalent when 7012 721120 3 9

    completed to 'New' Purpose built Casino

    Casino Seasonal permanent occupancy 7011 721110 3 4

    Casino Seasonal other, including those unoccupied during 7011 721110 3 2off-peak season

    Floating casinos (i.e., gambling cruises, riverboat casinos) 7012 713210 3 2

  • 7/30/2019 Leisure Entertainment Fact Sheet

    4/13

    ACE GLOBAL ENGINEERING NETWORK LEISURE AND ENTERTAINMENT INDUSTRY

    2

    Description ICC NAICS ATC Occupancy Code Class

    Hotels (including Hotels with Casinos), Rooming Houses, Camps& Other Lodging Places

    Hotels, Motels, Resort Hotels, including Hotels with Casinos Other 7011 721110 3 2

    Hotels, Motels, Resort Hotels, including Hotels with Casinos Seasonal - permanent occupancy 7011 721110 3 5

    Hotels, Motels, Resort Hotels, including Hotels with Casinos Seasonal other, including those unoccupied during off-peakseason Refer to Z Authority 7011 721110 3 2

    Hotels, Motels, Resort Hotels, including Hotels with Casinos -Non-Combustible construction City 7011 721110 3 9

    Hotels, Rooming Houses, Camps & Other Lodging Places

    Convention Centres Non Combustible Construction -If Inferior Construction Refer to Z Authority holder(If used for exhibitions, trade shows or performancesopen to the public use ICC 7999 class 3 ) 7994 531120 3 8

    Museums, Art Galleries, Botanical and Zoological Gardens

    Museums & Art Galleries (Buildings Only) 8411 712110 10 9

    Museums & Art Galleries (if listed/preserved building) 8411 712110 10 6

    Contents or Fine Arts Floaters (Refer Specie) 8411 712110 10 ReferMarineSpecie

    Arboreta, Botanical & Zoological Gardens (decline outdoor property) 8421 712130 10 7

    Amusement and Recreation Services (Except Motion Pictures)

    Billiard and Pool Parlours (may have food & bar service) 7932 713990 10 2

    Bowling Alleys 7933 713950 10 3

    Amusement and Recreation Services (Except Motion Pictures): Commercial Sports Professional Sports Clubs & Promoters,Racing, including Track Operation (all types) may also involve

    operation of stadiums, grandstands, arenas - Outdoornon-combustible construction. Converted Premises(i.e. should be equivalent when completed to 'New' Purposebuilt Stadia and Concert halls) 7941 711310 10 8

    Commercial Sports Professional Sports Clubs & Promoters,Racing, including Track Operation (all types) may also involveoperation of stadiums, grandstands, arenas-(decline inferior construction) Outdoor Non-CombustibleConstruction. Converted Premises (i.e. should be equivalentwhen completed to 'New' Purpose built Stadia and Concert halls) 7941 711310 10 7

    Dance Halls (Not Discos or Halls which might be used for Raves) 7911 713990 10 5

    Discotheques decline stand alone refer to Z Authority 7911 713990 10 ZAuthority

    Theatres (not Motion Picture or Television), Bands, Orchestras

    & Entertainers, Stage Shows including scenery watch forexcessive scenery storage on site 7922 711110 10 6

    Golf Courses, Public & Private 7992 713910 10 5

    Membership Sports Other 7997 713940 10 6

    Amusement & Recreation Services, N.O.C.(boat houses, circuses/expositions/ fairs tent shows) 7998 711190 10 2

    Amusement services NOC and Exhibition Centres Non-Combustible construction (non-permanent exhibitions).For permanent exhibitions see Museums ICC 8411/6 refer to Z authority for inferior construction 7999 711190 10 5

    Inflated structures refer to Z authority 7998 624221 10 2

    Membership OrganisationsMembership Organisations N.O.C. 8690 813319 22 6

    Motion Pictures (Distribution and Allied Services)

    Motion Picture Theatres 7832 512199 10 7

    Motion picture Theatre Drive In 7833 512132 10 5

  • 7/30/2019 Leisure Entertainment Fact Sheet

    5/13

    ACE GLOBAL ENGINEERING NETWORK LEISURE AND ENTERTAINMENT INDUSTRY

    3

    Special Hazards

    The main business focus of the sector is to provide

    leisure and entertainment services and activities to

    the general public. Occupant numbers can range from

    small groups to very large audiences, often in excess

    of 50,000 people. The number of people attending

    these venues can in itself have repercussions inincreased property damage.

    Fire Department Focus

    When attending fires at these types of occupancies

    fire departments will focus on the following in order

    of priority: evacuation of affected people, rescue

    operations, firefighting operations. Fire department

    access to the site may be slowed by the evacuation of

    large numbers of people into the area surrounding the

    venue. Consequently firefighting operations may be

    delayed in dealing with issues of greater priority,

    resulting in increased property damage.

    The control and the safety of the occupants of the

    building is paramount and this requires venue

    operators to apply excellent management controls

    and have formal evacuation and emergency plans in

    place.

    Many of the segment groups have common risk

    exposures, including: traditional kitchens and display

    cooking areas, combustible dcor, temporary and

    permanent storage areas (or lack of them), temporary

    structures (stages, display stands) and infrastructure

    such as electrical cabling and gas supplies.

    Decorations

    The dcor can be elaborate, thematic and very often

    combustible. Materials such as paper, straw, cloth,shrubbery, artificial flowers, foams and plastics are

    used on a temporary or permanent basis to create

    ambiance within the venue. Where possible these

    materials should be fire retarded or replaced by

    less combustible materials.

    Exhibition Halls

    Storage of large quantities of combustible materials,

    such as packaging for transporting displays and for

    product literature, presents a fire hazard if suitable

    storage arrangements have not been provided.

    Storage must be remote from ignition sources.

    KitchensCooking and open flames are often associated with

    leisure and entertainment occupancies. Where

    cooking is undertaken in traditional kitchens the use

    of automatic extinguishing systems and extract-duct

    systems can alleviate most of the hazards, provided

    that these systems are properly maintained and are

    operational. Records of duct cleaning regimes should

    be available. Display cooking (e.g. food and wine

    shows and flamb cooking at tableside) present more

    challenging problems. Adequate planning of the

    location of cooking equipment, the location of gas

    cylinders (LPG and propane), the layout of temporary

    gas piping and of staff training is required. Fixed

    suppression/detection systems may also berecommended. Reference NFPA 96, Ventilation,

    Control, and Fire Protection of Commercial

    Cooking Operations.

    S

    Housekeeping

    Good housekeeping practices is important at all sports

    venues. Care must be taken to prevent combustibles

    accumulating underneath seating areas, especially

    where the seating/seating structure is of combustible

    materials.

    Electrical Wiring

    The temporary nature of many events (exhibitions,

    shows at nightclubs etc.) results in an increased use

    of non-permanent electrical wiring. Where temporary

    wiring is required care needs to be taken that this

    wiring meets appropriate standards for fire and health

    and safety and that the buildings electrical reticulation

    system is capable of safely supplying the load

    required. Where diesel generators are used, they must

    be located remotely from the building so as to avoid

    the potential for fire spread.

    Theatres

    Here the hazard revolves around the stage and

    backstage area. Traditional proscenium stages

    have scenery and lighting flown above the stage,

    scenery/backdrops on the back and sides of the stage,

    workshops at the rear or sides of the stage, prop

    storage areas, trap doors and stage lifts. Factors

    such as fuel loading, multiple ignition sources and

    a complicated building layout all contribute to a

    potentially dangerous fire situation. Automatic fire

    suppression systems, ventilation and fire resistant

    stage curtains are required. On modern stages the

    tendency is for scenery to be moved horizontally

    which has eliminated the need for high fly galleries or

    scene lofts. In addition the audience is often exposedto the stage on three sides. Scenery handling

    equipment and any workshop areas should be

    adequately protected.

    Projection booths house equipment for the

    transmission of light onto a screen, curtain or

    stage. The main hazard is the means of projecting

    light onto the screen. Electric arc, xenon and similar

    light sources generate hazardous gases, dust and

    radiation and can potentially fail with explosive

    force. The modern projection booth is designed

    to be soundproof but not necessarily to prevent

    fire spread.

    Storage Areas

    Improper storage practices present a fire hazard and

    the storage of tables, chairs, scenery and supplies

    can increase the fuel load in a building and hinder

    occupant escape and fire department access.

    Adequate safe storage areas are required.

    Stage Effects

    The use of fireworks and flame effects needs to be

    considered as these can contribute significantly to

    the potential ignition hazards within a building.

    Poor planning or improper control or management

    of these effects could result in ignition sources and

    combustibles being in close proximity of one another,

    creating a fire hazard. The potential also exists for

    fire to spread rapidly in multiple areas, possibly

    overwhelming the sprinkler system.

  • 7/30/2019 Leisure Entertainment Fact Sheet

    6/13

    ACE GLOBAL ENGINEERING NETWORK LEISURE AND ENTERTAINMENT INDUSTRY

    4

    Access

    Access to the exterior of the structure or property at

    risk could be limited for short or extended periods of

    time. For example, in stadiums hosting large public

    events and convention and exhibition halls, the

    location of vehicles, waste and recycle skips, musical

    and lighting equipment, fences, gates, landscaping,

    construction materials and props can all hinder firedepartment access.

    Fire Protection Systems

    The level of risk should be evaluated in conjunction

    with the level of fixed fire-protection systems, the

    nature of the venue (construction, usage) and the

    adequacy of management controls in place.

    NFPA codes addressing these exposures are

    as follows:

    NFPA 5000, Building Construction & Safety Code

    NFPA 160: Flame effects before an audience

    NFPA 1123: Fireworks display

    NFPA 1194: Recreational vehicle parks

    and camp grounds

    NFPA 40: (Chapter 8) Motion picture projection

    and special processes.

    Common Areas of Concern

    Typically the front of house areas that the public

    frequent are well laid out with good fire protection,

    security and housekeeping. Common areas of concern

    will most likely include the following:

    Use of combustible building materials, often in

    unexpected areas (e.g. use of expanded polystyrenesandwich panels cases in New Zealand of indoor

    ski slope and EPS panels used as roof covering for

    cable car boarding stations)

    The back of house storage areas and temporary

    storage areas

    Controlling storage heights to meet sprinkler

    system design parameters

    Storage below unprotected mezzanines

    Poor housekeeping standards and inadequate

    recycling and garbage removal procedures

    A

    Blocked internal and external fire exits

    Maintenance of the fire suppression systems and

    the cleaning frequency of exhaust ducts, filters,

    grease traps etc. within kitchens

    Large single fire areas with no divisions

    The adequacy of atriums and open space

    protection

    Temporary displays for special promotions and

    seasonal promotions. These displays most

    commonly Christmas displays can be quite large

    and are often provided with false ceilings. Apart

    from obstructing the ceiling sprinkler protection

    the ceilings are often constructed of combustible

    material. The back sections of displays are also

    commonly used for storage of packing cases etc.

    Major Exposures

    The major exposures associated with the

    entertainment and leisure segment are as follows:

    Large single fire areas with no fire divisions,

    inadequate fire stopping between fire cells

    Lack of automatic fire protection in the

    kitchen areas

    Inadequate fire protection

    The use of pyrotechnics

    Remote locations serviced by volunteer

    fire departments

    Inadequate security

    Vandalism and malicious damage

    Crowd control

    Poor maintenance practices leading not only to

    breakdowns and Business Interruption (BI)

    exposure but also liability exposure e.g. grandstand

    or theme park ride incidents

    Housekeeping methods and practices

    Potential for a major disaster involving members

    of the public.

  • 7/30/2019 Leisure Entertainment Fact Sheet

    7/13

    ACE GLOBAL ENGINEERING NETWORK LEISURE AND ENTERTAINMENT INDUSTRY

    5

    Business Interruption (BI) andContingent BI considerations

    These exposures vary widely within the industry

    because of the varied nature of businesses.

    The business interruption exposure for a medium-size

    restaurant catering for 50 people will clearly not

    be the same as a large convention centre withconventions booked throughout the year.

    A number of the segment groups are seasonal in

    nature and any losses at the beginning of the season

    will impact over the whole programme. Many of

    the occupancies are in large complexes, such as

    entertainment districts and shopping malls where a

    serious fire in a neighbouring facility could prevent

    access to all sections of the building. Weather issues

    can also impact sporting venues particulary where

    major events are staged.

    Purpose-built venues (theme parks, large convention

    centres) will most likely be closed down for theduration of repairs after a fire. There will be

    minimal opportunity to relocate, even temporarily,

    to alternative premises. In these instances the

    expectations will be that BI cover will be for the

    full indemnity period and that indemnity periods

    will be long.

    BC

    Casino operations are heavily regulated and there is a

    requirement for excellent record keeping; the

    maintenance of a gaming license is often dependent

    upon this. Most casino operations are reliant on IT

    systems for this function and any disruption to the ITsystem could result in the casino being closed by

    regulators until such time as they are able to fulfill

    their license obligations. The robustness of the IT

    system, the adequacy of data-back-up activities and

    the existence of a relevant business continuity plan

    are issues which should be evaluated.

    All leisure and entertainment occupancies are required

    to remain compliant with local health and safety

    legislation. In occupancies, such as theme and

    amusement parks and skiing facilities, where profit is

    generated from rides and ski-lifts any incident (injury

    or death) may result in the closure of the facility until

    repairs are made or entire systems are tested forsafety. BI losses may be far in excess of property

    losses. The adequacy of maintenance programmes

    and management controls should be evaluated.

    Industry Trends

    The entertainment and leisure industry is fast

    developing into larger multi-complex buildings offering

    the consumer greater choices. These complexes are

    typically located in hotel buildings, casino hotels,large shopping malls and large entertainment

    complexes. A number of separate clients might

    be located within one complex.

    A major advantage of the multi-complex is that the

    properties, usually located in large urban areas, are

    purpose built with non-combustible construction,

    full automatic sprinkler protection, adequate public

    hydrant protection and full-time fire departments.

    Central security systems are generally in place with

    extensive use of digital surveillance cameras and

    patrolling security guards.

    I

    Large stadiums and arenas are used primarily for

    sporting events. Concerts, exhibitions and trade shows

    also involve increasingly large audiences. The use

    of temporary structures, lighting rigs, display standsneed to be controlled as they can impact on the

    automatic sprinkler protection.

  • 7/30/2019 Leisure Entertainment Fact Sheet

    8/13

    ACE GLOBAL ENGINEERING NETWORK LEISURE AND ENTERTAINMENT INDUSTRY

    6

    Requirements

    The wide variety of building types and size, the

    construction materials and the nature of events staged

    will mean that the levels of protection will vary greatly

    between occupancies. A reasonable expectation is

    that fire protection within these buildings would

    depend on the legislative requirements for life safetyat the time the venue was opened or when major

    alterations are made. As a result the level of fixed fire

    suppression and detection systems will vary. For

    example, sprinkler protection may not be present in

    some smaller occupancies but will most likely be

    present in larger venues. Construction materials will

    vary widely from combustible to non-combustible

    materials. The age of the structure will mostly dictate

    the nature of construction.

    The size of the risk and the exposed values will often

    determine the acceptability of the risk.

    Low value exposures PD and BI (Property Damage

    and Business Interruption) possibly stand alone

    Ideally non-combustible construction, but presence

    of combustible construction may be accepted if

    other RM factors in place

    Where sprinkler protection and/or fire detection

    installed proof of adequacy and reliability of the

    system, maintenance records, sprinkler flow test

    results etc

    Adequate first aid fire equipment hose reels,

    fire extinguishers, fire blankets for kitchens

    Maintenance of fire equipment to appropriate

    standard basic records kept Basic levels of management control

    housekeeping, hot work controls, impairment

    procedures, fire equipment maintenance,

    self-inspection routines, smoking policy

    Adequate water supply, hydrants and fire

    department

    Level of security appropriate for nature of business

    and location monitored intruder alarm,

    adequately rated safes on site for cash.

    Medium value exposures (PD and BI) possibly

    stand alone but could be part of a larger building

    Ideally non-combustible or substantiallynon-combustible construction, limited quantities of

    combustible construction may be accepted if other

    RM factors in place

    Expectation would be for good fixed fire-protection

    systems in place sprinkler system, fire detection

    system, monitored by central control room or

    directly by fire department

    Where sprinkler protection and/or fire detection

    installed proof of adequacy and reliability of

    system, maintenance records, sprinkler flow test

    results etc

    Proof of adequate kitchen extract duct cleaning

    regimes

    Proof that combustible dcor has been treated with

    a fire retardant material

    Preventative maintenance regimes in place,especially for electrical reticulation and other

    critical plant and equipment

    Adequate first aid fire equipment hose reels,

    fire extinguishers, fire blankets for kitchens

    Passive fire protection in place fire

    compartmentation between fire cells, fire

    separation between plant room, storage area etc.

    and public areas, fire dampers, fire sealants

    Maintenance of fire equipment to appropriate

    standard up to date records kept

    More formalised management control in place

    documented rules, procedures, policies relating

    to housekeeping, hot work, impairment, fire

    equipment maintenance standards and records,

    self-inspection routines, evacuation and emergency

    plans, guidelines on the use of combustible

    decorations, props and sets, procedure and permit

    for the use of fireworks, flame and stage effects,

    guidelines for use of temporary electrical wiring,

    training of security and venue staff, site induction

    for contractors

    Key staff trained in the use of the fire equipment

    Level of security appropriate for nature of business

    and location monitored intruder alarm as aminimum, possibly CCTV cameras, security patrols

    by contract security provider, adequately rated

    safes on site for cash

    Basic management and other key data backup

    systems in place

    Adequate water supply, hydrants and superior fire

    department

    Minimal external exposures earthquake, flooding,

    windstorm, lightning where possible protective

    measures in place.

    High value exposures (PD and BI) large

    entertainment complexes or purpose built venues

    Largely non-combustible construction but minimal

    quantities of combustible construction would be

    acceptable if other RM factors in place

    Automatic sprinkler protection throughout to

    appropriate standard (NFPA or equivalent)

    Fire detection throughout or in critical plant room

    and high-risk areas as a minimum

    Fixed fire suppression systems in kitchens, server

    rooms, control room

    Fire-suppression/detection systems monitored by

    central control room or directly by fire department

  • 7/30/2019 Leisure Entertainment Fact Sheet

    9/13

    Internal and external hydrants connected to

    adequate water supply

    Adequate first aid fire equipment hose reels,

    fire extinguishers, fire blankets for kitchens

    Passive fire protection in place fire

    compartmentation between fire cells, fire

    separation between plant room, storage area etc.and public areas, fire dampers and fire sealants

    Where sprinkler protection and/or fire detection

    installed proof of adequacy and reliability of

    system, maintenance records, sprinkler flow test

    results etc

    Maintenance of fire equipment and other systems

    (e.g. smoke ventilation systems) to appropriate

    standard

    Kitchen extract duct cleaned as part of

    programmed maintenance proof that cleaning is

    taking place according to regime and to appropriate

    standard

    Proof that combustible dcor has been treated with

    a fire retardant material or non-combustible

    alternatives used

    Fuel supplies to boilers, kitchens heating systems

    interlocked with sprinkler or fire-detection system

    so as to shut off on alarm activation

    Electrical supply backed up by diesel generator

    linked to critical plant and equipment, including

    fire systems and pumps

    Highly formalised management controls in place

    extensively documented rules, procedures, policiesrelating to, inter alia, housekeeping, hot work,

    impairment, fire equipment maintenance standards

    and records, self-inspection routines, evacuation

    and emergency plans, business continuity plans,

    guidelines on the use of combustible decorations,

    props and sets, procedure and permit for the use

    of fireworks, flame and stage effects, guidelines for

    use of temporary electrical wiring, training of

    security and venue staff, site induction for

    contractors and third party service providers and

    kitchen extract duct cleaning standards

    Formalised and regular self-inspection routines,

    to cover legislative requirements and venuemanagement standards, should be fully

    documented and inspections recorded,

    and carried out by trained staff

    All critical plant, equipment and protective systems

    on full preventative maintenance programmes

    Level of security appropriate for nature of business

    and location but must include monitored intruder

    alarms, CCTV camera coverage to critical areas, on

    site security team, adequate safes on site for cash

    Robust data backup and recovery procedures inplace

    Key staff and security team trained in the use of

    first aid fire equipment, ability to respond to and

    initiate fire fighting operations

    Superior water supply, hydrants and fire

    department

    Minimal external exposures earthquake, flooding,

    windstorm, lighting protective measures in place.

    As a global standard NFPA should be adopted as

    the benchmark for automatic sprinkler protection.

    However where local standards exist, and these arecomparable to NFPA, these are adequate for ACE RM

    and underwriting purposes. In countries with national

    standards bodies such as European Standards and

    Standards New Zealand, most fire protection systems

    are designed and installed to the appropriate local

    standard and first aid fire fighting equipment complies

    with specific standards pertaining to the type

    of equipment. These standards often contain

    requirements for the testing and maintenance

    of installations and/or fire equipment.

    The testing frequency of the fire protection systems

    should be in accordance with NFPA 25 standards

    for fire pumps and sprinkler installations. Specialattention should be paid to the maintenance and

    testing of the kitchen fire suppression and exhaust

    systems.

    All fire alarm signals (including all tenant spaces)

    should be monitored through the main security office

    or an approved central station (NFPA 72). Written fire

    evacuation should be posted throughout the premises

    and annual fire evacuation drills should be carried out.

    Copies of all fire protection and detection records

    should be available on site for examination.

    ACE GLOBAL ENGINEERING NETWORK LEISURE AND ENTERTAINMENT INDUSTRY

    7

  • 7/30/2019 Leisure Entertainment Fact Sheet

    10/13

    ACE GLOBAL ENGINEERING NETWORK LEISURE AND ENTERTAINMENT INDUSTRY

    8

    Loss Estimates

    Key factor in this segment are the construction, fire

    protection and location of the premises. A portion of

    the segment will be located in rural and remote areas

    and will generally be non-protected risks, with poor

    water supplies and volunteer fire services. Losses in

    these groups will be 100% LPD AS (Property Damage Amount Subject)

    Generally 100% for buildings under single roof but in

    most cases, especially for small stand-alone individual

    occupancies. In large complex buildings or where a

    number of buildings are located on the same site the

    AS may be reduced if adequate separation, by means

    of a complete fire wall, lack of combustible continuity

    or physical distance is present.

    PD PML (Property Damage Probable Maximum Loss)

    Somewhat subjective and dependant upon the

    building layout and combustible loading. Generally ahigh PML is likely in venues with high combustible

    loadings or rural locations with lengthy fire

    department response times and/or water supply

    issues. Favorable conditions for a reduction in the

    PML would include large open areas with minimal

    combustibles, fire rated separation between fire cells

    by fire rated doors, walls or shutters, early detection

    by on-site security staff, caretakers, good water

    supplies and acceptable response times by the

    fire department.

    PD NLE (Property Damage Normal Loss Expectancy)

    Minimal in buildings with adequate sprinkler

    protection throughout. If the building is not sprinkler

    protected or the sprinkler system not adequate then

    NLE would likely equal the PML.

    BI AS (Business Interruption Amount Subject)

    Normally 100% in line with PD AS however the

    indemnity period would be a factor in this case

    a longer indemnity period may allow for reduced AS.

    Site layout, e.g. a theme park with multiple rides,

    may allow for reduced BI estimates

    BI PML (Business Interruption Probable

    Maximum Loss)

    The extent of damage estimated in PD PML needs to

    be considered along with the impact on surrounding

    areas and access to the building. Purpose-built venues

    will have longer indemnity periods so this needs to be

    reviewed and taken into account in terms of

    re-construction times.

    BI NLE (Business Interruption Normal Loss

    Expectancy)

    Generally minimal in line with PD NLE if the

    building is sprinkler protected.

    It should be noted, as stated above, that BI and

    contingent BI exposures will vary widely within

    this industry segment due to the varied nature

    of the businesses offering leisure and entertainment

    services and activities.

  • 7/30/2019 Leisure Entertainment Fact Sheet

    11/13

    80

    60

    40

    20

    100

    0

    88 92

    28

    81

    70

    81

    82

    70

    82

    85

    8888

    81

    90

    82

    79

    75

    75

    85

    88

    89

    Water Supplies

    Fire Brigade

    Sprinklers

    Hydrants

    Hose Reels

    Extinguishers

    Electrics

    Cutoffs

    Special Hazards

    Hot Work

    HousekeepingMaintenance

    Impairments

    Smoking Control

    Training

    Contingency

    Planning

    Exposures

    External

    Exposures

    Internal

    Self Inspection

    Rules & Procedures

    Watchman Service

    ACE GLOBAL ENGINEERING NETWORK LEISURE AND ENTERTAINMENT INDUSTRY

    9

    Industry Benchmarking

    Outer circle represents best industry practice.

    Black line represents the global average of ACE

    inspected leisure and entertainment operations

    during a period of five years.

    Date Company Location Loss

    2003 Moulin Rouge Hotel & Casino Las Vegas Total loss

    2005 Entertainmentz 4,150 000

    2007 Hotel Fife Glasgow Scotland 6,745 000

    2009 Empress Casino Illinois Near total loss

    Industry Loss Information

  • 7/30/2019 Leisure Entertainment Fact Sheet

    12/13

    ACE GLOBAL ENGINEERING NETWORK LEISURE AND ENTERTAINMENT INDUSTRY

    10

    ACE Contacts in your region for further information

    Name Region Office Contact Information

    Garry Hollins Asia Pacific Auckland, New Zealand [email protected]

    Phone: + 64 9 374 1718

    Sean Canada Toronto, Canada [email protected]

    Hollingsworth *G Phone: + 1 416-594-3031

    Ian Bell Europe Manchester, UK [email protected]

    Phone: + 44 (0) 161 910 1844

    Bruno Escoba Latin America Mexico City, Mexico [email protected]

    Phone: + 52 (55) 52485863

    David Partridge USA St. Augustine, Florida, [email protected]

    USA Phone: + 1 904 824 5104

    *G Denotes Global Product Champion

    Reference SourcesNFPA standards

  • 7/30/2019 Leisure Entertainment Fact Sheet

    13/13

    ACE Global Engineering Network

    The ACE Global Engineering Network creates strong, long term relationships with clients, focusing on cost effective and

    proficient solutions to their risk management challenges.

    Through in depth loss prevention training backgrounds and industry expertise, ACE engineers are experienced inevaluating a wide variety of risks and complexity of exposures.

    Our specialist team is driven by account and field engineers delivering high quality and effective loss prevention services.

    We have engineers in key strategic locations around the world who are familiar with international standards as well as

    local codes and work practices. This proves invaluable in helping clients establish and maintain operations in traditional

    and emerging markets.

    For further information please go to www aceagen com