Partnerships in Prevention
FM Global Success Stories highlight a broad range of challenges that confronted our clients and how they found successful solutions by working closely with FM Global.
Genzyme
Challenge
A rapidly growing and diversifying company, Genzyme faces significant business interruption exposures and must continually evaluate processes, such as where to store intermediate and finished products in order to mitigate stockpiling.
Solution
FM Global presented possible risk scenarios and the impact of potential losses and proposed a low-cost way to reduce Genzyme's risk by using other locations as backup facilities for inventory or work-in-process.
Benefit
Genzyme and FM Global greatly improved business interruption cost calculations for facilities worldwide that are increasingly interdependent.
Aracruz Celulose
Challenge
Introduce a modern corporate risk management system to a Brazilian market where risk management is a new way of thinking and implementation meant changing the corporate culture—particularly for teams at the mills.
Solution
Aracruz chose FM Global for its prior experience working in Brazil, large capacity, ability to price premiums based on risk quality, and risk management expertise.
Benefit
Through its close relationship with FM Global, Aracruz successfully implemented a risk management system that is helping Aracruz achieve their business goal of reducing capital costs.
Gannett
Challenge
Gannett is located in the heart of the hurricane-prone southeastern United States. In the fall of 2005, Hurricane Katrina and Rita devastated the Gulf Coast.
Solution
In 2004, FM Global conducted on-site risk evaluations of several new Gannett facility projects and found that the roofs had not been properly installed and would not withstand a powerful storm. FM Global quickly developed a retrofit para and recommended that the contractor return and implement the changes.
Benefit
Within a month the roof was repaired. Later that year, four major hurricanes barreled through the Florida area, but Gannett weathered them all with virtually no property damage.
International Paper
Challenge
After Hurricane Andrew struck International Paper facilities in 1992—International Paper needed to assess their risks and evaluate them based on the type of risk and amount of money available to implement paras.
Solution
International Paper worked closely with FM Global to identify areas of its Pensacola facility that required structural improvements to prevent catastrophe—specifically from hurricanes. Among the recommendations, FM Global advised using flashing, nailing down corners, and in some cases, whole roof replacement.
Benefit
In 2004 and 2005, Hurricane Ivan and Hurricane Dennis came barreling through Florida hitting the Pensacola facility head-on. The Result? Minimal damage.
Tenaska
Challenge
Operating in a specialized industry—electric energy generation—Tenaska required business interruption insurance with high limits and low deductibles designed to mirror the provisions of their customers.
Solution
Tenaska relied on FM Global for their ability to thoroughly understand Tenaska's unique industry requirements and provide them with a customized policy that addressed their specific needs.
Benefit
Tenaska is now confident they have a partner who can work though tough issues with them and create unique paras.
Tyco
Challenge
In 2004, Hurricane Frances, Ivan and Jeanne were causes for great concern for most businesses in Florida, including Tyco.
Solution
Tyco brought in FM Global to help assess and mitigate the risk to their facilities. Among many recommendations, FM Global advised Tyco to secure its roofs on their main manufacturing plant.
Benefit
Tyco successfully implemented the improvements right before another storm arrived. The storm caused significant damage to the immediate area, while Tyco facilities were virtually unscathed.
Albany International Corp.
Challenge
Considered the nation's most expensive natural disaster, Canada's notorious 1998 freezing rainstorm poured nearly 4 in. (10cm) of solid ice on everything in its path from Ontario to New Brunswick, including Albany International Corp's Quebec facility.
Solution
Albany International Corp. relied on its business property insurer and loss prevention advisor, FM Global, to help the company put measures in place to prepare for a worst-case scenario and minimize downtime as a result.
Benefit
Albany International Corp. was fully operational within 10 days.
BIC Group
Challenge
As BIC began consolidating its manufacturing operations globally, it became critical to protect BIC facilities to the greatest extent possible.
Solution
Already a client of FM Global, BIC decided to expand their relationship and let FM Global handle 100 percent of their property insurance allowing them to deal with one company and one philosophy—worldwide
Benefit
FM Global takes the time to understand BIC's manufacturing operations and helps meet their objectives of keeping the company operating and continuously improving its loss profile.
CEMEX
Challenge
CEMEX acquired a new company—RMC Group, the world's largest supplier of ready-mix concrete—and needed to set up a property loss prevention seminar in each location.
Solution
CEMEX looked to FM Global's worldwide network of service partners to help them conduct property loss prevention seminars around the world and traverse cultural barriers.
Benefit
FM Global was able to eliminate virtually any local bias enabling the dissemination of CEMEX's property loss prevention philosophy to all their global locations. This global network model also ensures the local carrier follows FM Global's form, service and procedures. And policies are issued on a timely basis and cash flow is handled efficiently.
Cintas Corporation
Cintas Corporation provides highly specialized services to businesses and has several locations in the hurricane-prone southeastern United States.
When a storm develops, Cintas turns to its insurer and property loss prevention advisor, FM Global, to send the latest storm tracking information, projecting where the hurricane will make landfall and provide appropriate recommendations to mitigate loss.
Benefit
Cintas is able to identify locations in the projected path of hurricanes and take appropriate action, such as removing items from the floor in case of flooding and parking box trucks in front of large windows and doors to prevent wind and debris damage.
Dana Corporation
Challenge
In a former Eastern Bloc country, the building authorities and contractors were accepting of local governmental standards that were not adequate for Dana Corporation's purposes.
Solution
Dana Corporation turned to its business property insurer and property loss prevention advisor, FM Global, to leverage their expertise in navigating cultural issues that could act as roadblocks to achieving Dana Corporation's property loss prevention goals.
Benefit
With the help of FM Global, Dana Corporation was successful in explaining and implementing their property loss prevention requirements
The LEGO Group
Challenge
The LEGO Group decided to outsource major lines of production to facilities in Mexico and Eastern Europe. Engaging in third party manufacturing requires that all risk management paras be addressed upfront and the terms be regulated in the contract.
Solution
The LEGO Group looked to the expertise of FM Global to ensure they weren't taking unneeded risks and to help them conduct natural hazard checks, develop specifications for new construction, oversee construction, as well as provide input into contract wording.
Benefit
Throughout their supply chain, the LEGO Group created a special safety and facility appendix to contracts stipulating the implementation of FM Global recommendations and risk management philosophies requiring facilities to achieve highly protected risk status.
Ocean Spray
Challenge
Located on the coastline of Florida, Ocean Spray was concerned about the eventuality of a hurricane hitting their processing operations. If a power loss were to occur, Ocean Spray stood to lose US$75 to US$100 million of product.
Solution
Prior to the hurricanes, FM Global conducted an on-site evaluation of the facilities and recommended Ocean Spray secure sections of their buildings most vulnerable to high winds and purchase back-up portable generators for a modest cost.
Benefit
In 2004, when Ocean Spray facilities took a direct hit from two of the four devastating hurricanes that struck the Florida coastline, their facilities sustained only superficial damage and continued to operate.
TRW Automotive
Challenge
TRW has recently expanded its production capabilities to other parts of the world—like China—where there is a real need to overcome risk management paras, such as protecting the continuity of TRW's operations.
Solution
TRW turned to its business property insurer and loss prevention advisor, FM Global for loss prevention engineering advice and coordination in managing risk in multiple facilities across the world. The worldwide presence of FM Global helped TRW translate their risk management philosophy locally and put it into action.
Benefit
TRW has accomplished its goal of meeting the global competitive standards in their Shanghai manufacturing facility achieving highly protected risk status.
Atlanta Motor Speedway
Challenge
Less than four months before hosting a major NASCAR event, Atlanta Motor Speedway was nearly destroyed when a devastating tornado ripped thought the area, leaving the racetrack owner, Speedway Motorsports Inc (SMI), a trail of seemingly irreparable property damage.
Solution
SMI turned to FM Global for property loss prevention engineering advice and coordination of the reconstruction effort to keep costs to a minimum and for rapid and fair claims settlement to help ensure their operations returned to normal as soon as possible.
Benefit
SMI successfully completed the project in time for its October race with an improved facility and without any interruptions to its business.
Highlights in Prevention
Leaders from our client companies discuss how FM Global worked with them to address key property risk management issues.
Aracruz Celulose
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Leaders from our client companies discuss how FM Global worked with them to address key property risk management issues.
The LEGO Group
» Watch Video
Leaders from our client companies discuss how FM Global worked with them to address key property risk management issues.
TRW Automotive
» Watch Video