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Spill Containment Reccomended by Loss Prevention Consultant


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Had a visit by our insurance agent's Loss Prevention Consultant today. His visit was scheduled and legitimate. His inspection was cordial and comments were reasonable. The "recommendation" he left me with, and that will be noted in his official report, was the lack of spill containment around any vessel that holds high proof spirits. If a leak was to spring, or in his words "you are driving the forklift and you zig when you intended to zag" and the tank (of many-hundred gallons) is pierced and begins to empty, we would have a serious problem on our hands. He is right. A worst-case-scenario yes (specifically what his is paid to think of), but i would have a serious problem.

Up to this point, just like with our steam header that will blister your skin if touched bare-handed, and the electrical panel that is deadly when licked, my only line of "defense" was to treat each component of this process with proper respect and to always be mindful of the risks if handled improperly. Also, from a start up budget standpoint, my current respect-based-solution happened to cost exactly the amount of money i had to spare on it.

So from this point, the process is kind of gray. What was issued was a "recommendation", I will have 30 days after receiving said recommendation to "reply" with a "plan". Perhaps in a year or perhaps never, there will be a follow up inspection, however there was no specific actions I'm technically required to take as far as i can tell. I agree with the gravity of his worst case scenario, but file it with the likely hood of a dump truck crashing though my wall (which would also present me with a serious problem).

My question to the field: Do you have spill containment? Did you rig it yourself? Has anyone else faced similar concerns from their insurance, code-enforcement, fire marshal, or other general bureaucratic entity paid to issue recommendations? Am i being stupid by not having spill containment?

Thanks!

-Scott

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I've never seen this recommendation or requirement. Fact is that alcohol mixes readily with water so any typical spill can be diluted. It seems to me impractical to have to have a containment around all tanks holding spirits, given we are mainly using tanks under 500 gallons and mostly 55 gal ss tanks. A forklift might pierce one 55 g tank, which is not a great deal of spilled material and could easily be hosed down. And what about all the oak barrels, should the barrel storage building have a containment structure built around it? Just thinking that it is impractical on the day to day functional side. A response, were I to compose it, would be the statistics on major alcohol spills in distilleries across the US from fork lift damage or other damage. If it isn't a problem, they should not be suggesting the containment; since if they "recommend" it and you do not do it, they are likely to use that as a reason to raise the risk level and therefor your rates.

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At the other extreme, a distillery in Santa Cruz (now silent) was required to have a spill containment around the still, and it was to be pre-filled with water whenever the still was in operation. How silly is that?

For me, it's simply that these guys are like any inspector...if they don't find something to bitch about, then they were not needed in the first place...and they can't have that, can they?

Many of us toured some of the Kentucky distilleries, and not one of them had any type of spill containment - anywhere.

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We have done a similar inspection routine with our insurance agent. He wanted fire extinguishers of at least 20lb. Railings on the stairs. A fire escape for the upper floor (roll down ladder from Grainger). Emergency lighting (Home Depot). I would contain items like acids which really could ruin your day. The loss prevention guy is doling out free advice that might keep a more annoying visit from a code enforcement type at bay...

Brian

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I've never personnally seen a containment system in a distillery ... but I do understand what your insurance guy is saying.

My concern, if I were you, would be that this could cause your insurance rates to go up. One of the quickest ways for a small business to become unprofitable is for that to happen ...

You should at least have a logical plan as how you'll manage a spill, including how you'll contain it and clean it up and how you'll mitigate the chances of fire, etc. It doesn't need to be fancy ... it just needs to be realistic and show your insurance company that you're on top of things. It needs to take away reasons for them to raise your rates (if that's possible).

Depending upon what your relationship is with your local fire department you may want to ask their advice, follow it, and then document what you've done to show your insurance company.

Just my two cents.

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Not only did we have to get the spill containment vessel we had to install a spill containment barrier for our main floor drain. Had to send reciepts and photos to the risk management expert. Upon further review of the photos it has been determined the barrier is a trip hazard which could "lead to serious injury". Now we are "going to revisit the floor drain issue to find the best location for eventual relocation of hazardous floor drain and barrier". Of course the drain should be moved to a high point on the floor. What next?!

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If i were you I would write a document explaining your procedure if a spill happens and also sight examples of the type of things people are suggesting in this threads such as.

"To whom it may concern, We at "Blah Blah Distillery" are prepared for any accidental spills that may occur. We have fire extinguishers located "here" "here" and "here. Upon a spill we would immediately dilute the solution with water from a hose located "here". Ethyl Alcohol, which is what we produce, is water soluboule thereby spraying it down with water would reneder it harmless to other equpipment, drains, pipes and flammability.

To my knowledge, knowing lots of companies and people in the ditilling industry, spill containment or entrapment around stills, tanks and other such equipment is unneccesary for many reasons. Mostly it would provide a tripping hazzard as employees are constantly walking around these fixtures. Also no distilleries I know of or have visted have spill containment as the solution once diluted with water is rendered harmless."

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