Hot Work Procedure – Insurance Company Supplements
Nov 22, 2021
Hot work is an integral part of the ongoing activity on construction sites. In light of the risk inherent in it, especially when it is not performed with the requisite care, insurance companies also include a detailed " hot work procedure " in the contractor's work insurance policy.
Within the framework of the above procedure, the insurance company outlines conditions regarding insurance coverage in the event of damage resulting from hot work. For example: defining responsible parties, defining the role of a "fire watcher", defining the function of a preliminary patrol and/or removal of flammable materials/projectiles, and more.
Here are several examples of hot work procedures in contractor work insurance policies issued by insurance companies in Israel (updated as of November 2021).
Important to emphasize! The review before you is general only and does not constitute legal or insurance advice regarding a specific event or a particular policy. It should also be emphasized that the terms of the procedure can vary from insurance to insurance, from insured to insured and sometimes from project to project. There are cases in which there are stricter/easier requirements in relation to the initial procedure and it is certainly possible that the insurance company will also request compliance with special/additional requirements as a result of the risks in the project (as they arose in the insurer's survey).
To view an explanation of the hot work procedure and its importance - click here
The Phoenix
Hot work according to "The Phoenix" - performing construction, building, assembly, renovation and other work involving welding and/or cutting and/or the use of any type and description involving heat, whether these are performed by the insured's employees or by contractors or their employees.
The Phoenix Contractors' Work Policy states that insureds will perform hot work while taking the following special precautions and safety measures:
· Removal of flammable materials at least 10 m - The insured must ensure that flammable materials (including wood scraps, cardboard, paper and crates) that can be removed are removed from the area where hot work is intended to be performed. The removal will be a reasonable distance and at least 10 m from the place where the work is to be performed, taking into account the removal that is possible in terms of normal wind directions. Flammable objects that cannot be moved will be covered with a non-flammable covering.
· Fire watcher – When performing hot work, the insured must ensure that at least one person is present on site, who will oversee the work and be able, if necessary, to contact the fire authorities. The aforementioned person must also be present on site for a reasonable period of time after the hot work has been completed.
· Notifying subcontractors – The insured will inform subcontractors that reasonable means of extinguishing must be provided when performing hot work and at the location where such work is performed.
· Safety manager – to the extent that the insured does not have the necessary knowledge to comply with these rules, he must ensure that he hires a safety manager whose job will be to guide those performing the hot work and supervise their work.
The Phoenix
Hot work according to "The Phoenix" - performing construction, building, assembly, renovation and other work involving welding and/or cutting and/or the use of any type and description involving heat, whether these are performed by the insured's employees or by contractors or their employees.
The Phoenix Contractors' Work Policy states that insureds will perform hot work while taking the following special precautions and safety measures:
Removal of flammable materials at least 10 m - The insured must ensure that flammable materials (including wood scraps, cardboard, paper and crates) that can be removed are removed from the area where hot work is intended to be performed. The removal will be a reasonable distance and at least 10 m from the place where the work is to be performed, taking into account the removal that is possible in terms of normal wind directions. Flammable objects that cannot be moved will be covered with a non-flammable covering.
Fire watcher – When performing hot work, the insured must ensure that at least one person is present on site, who will oversee the work and be able, if necessary, to contact the fire authorities. The aforementioned person must also be present on site for a reasonable period of time after the hot work has been completed.
Notifying subcontractors – The insured will inform subcontractors that reasonable means of extinguishing must be provided when performing hot work and at the location where such work is performed.
Safety manager – to the extent that the insured does not have the necessary knowledge to comply with these rules, he must ensure that he hires a safety manager whose job will be to guide those performing the hot work and supervise their work.
Ayalon
Hot work according to "Ayalon" – performing hot work of any kind, including welding or cutting using heat or using open fire and/or cutting or any use of spark-generating devices.
Ayalon Contractors Insurance includes a series of rules and guidelines regarding hot work, which are detailed in the procedure attached to the policy. The policy emphasizes that coverage for loss or damage resulting directly or indirectly from an explosion or fire is subject to compliance with the requirements (" For the avoidance of doubt, it is hereby clarified to the insured that failure to comply with this procedure by him may prejudice his rights under this insurance policy "). The following are the main requirements in the procedure:
· Coverage according to procedure only – "hot work" may not be performed at the work site on the insured's premises or by the insured outside the insured's premises, unless it is done in accordance with the procedure in the policy.
· Hot work by contractors and subcontractors – If the hot work is performed by a contractor or subcontractor, the contractor or subcontractor is required to appoint a person responsible on its behalf whose job is to ensure that the hot work is performed in accordance with the procedure only.
· Inspection by the person responsible for performing the hot work will inspect the location designated for the work and ensure that flammable materials have been removed within a radius of at least 10 meters from the location where the work will be performed. Permanent flammable objects will be covered with a non-flammable covering.
· Fire watcher – A fire watcher will be appointed by the person in charge and will be equipped with appropriate extinguishing means to extinguish flammable materials that are in the vicinity of the work site. While performing his duties, the fire watcher will not engage in any other activity and his sole duty will be to observe the work and take immediate action in the event of a fire as a result. The fire watcher will be present at the work site for up to 30 minutes after completion to ensure that no ignition sources remain.
Migdal
Contractors' work insurance at "Migdal" states that coverage for loss or damage resulting directly or indirectly from fire or explosion is subject to the terms and exceptions in the policy, and specifies specific rules regarding hot work procedures (as a means of mitigating risk).
"Migdal" states in the policy that the conditions in the hot work procedure are " minimum conditions ." That is, they are not sufficient for cases of hot work with "dangerous containers such as fuel or gas tanks" where the insured must apply for a permit procedure from the insurance company in accordance with the nature of the work.
Hot work according to "Migdal" - performing any work involving welding, soldering, brazing, tarring or sealing with a torch, grinding metals, cutting with a disc, or using a torch and open fire. "Flammable materials" in the policy are any "concentration of materials that constitute a fire charge such as: adhesives, paints, plastic materials, gas, diesel fuel, cardboard, wood, etc."
· Hot work supervisor – The contractor or subcontractor who performs hot work must ensure that hot work is performed according to the procedure in the policy, whether by himself or by appointing a supervisor on his behalf.
· Inspection before hot work – Before any hot work is performed, the contractor or his representative is required to inspect the area and ensure that flammable materials of any kind have been removed to at least a radius of 11 m. Flammable materials that cannot be removed should be covered with a non-flammable covering (e.g., wet tarpaulin or asbestos sheeting). Stairwells and/or elevator shafts that have flammable materials at the bottom should be covered or the flammable materials should be removed.
· Fire watcher – The insured is obligated to ensure that one of the employees functions as a "fire watcher" when performing hot work. The fire watcher should be solely concerned with observing the fire, must be equipped with fire extinguishing equipment, be prepared to call the rescue forces, and remain in the area for at least 30 minutes after the hot work is completed.
· Exemption from a "fire watcher" - if the hot work is performed in an area where there are no flammable materials, there is no need to appoint a "fire watcher" and it is sufficient to have fire extinguishing equipment near the work site.
Insurance company training
Definition of hot work - performing construction, building, assembly, renovation and other work involving welding and/or cutting and/or the use of any type and description involving heat, whether these are performed by the insured's employees or by contractors or their employees.
Company rules for hot work procedures:
· Removal of flammable materials – Before performing hot work, the insured must ensure removal of flammable materials such as wood scraps, boxes, papers, cartons, etc. The removal will be at least 10 meters, taking into account wind directions. Objects that cannot be moved will be covered by the insured with a non-flammable covering.
· Fire observer – An employee on behalf of the insured will be a "fire observer" who will oversee the work being done in the heat. The aforementioned employee can call the fire authorities and is required to be present on site for a reasonable time after the work in the heat has ended. The fire observer should be detached from any other role while he is overseeing the work in the heat.
· Notifying subcontractors – The insured is obligated to inform the subcontractors working on site regarding the hot work procedure and the existence of reasonable fire extinguishing means prior to the commencement of hot work.
· Appointment of a responsible person – The insured is obligated to employ a safety manager who will be responsible by virtue of his position to guide the hot work performers and supervise the execution of the work. This is whenever the insured does not have the necessary knowledge for this purpose.
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