November/December 2008 Emerging Trends Bring New Risks ... How Will They Affect You? Aging Power Grid Strains Electric Supply, Increases Exposures in Difficult Economy The U.S. electrical infrastructure, including the power grid and equipment that distributes electricity inside buildings, is being strained by aging equipment, power-hungry technology and tight budgets for maintenance and replacement. THE POWER GRID IS STRESSED Much of the transmission grid system was developed more than a half century ago. The average age of transformers used within the utility industry is over 30 years old and many units are nearing the end of their expected life. The unstable economy will make it even more difficult to maintain and upgrade equipment. BLACKOUTS AND BREAKDOWNS Aging utility equipment increases the potential for power blackouts that in turn increase the risk of surge damage to sensitive electrical and electronic equipment that business, industry and institutions rely upon. ELECTRICAL FAULTS CAUSE FIRES Then there is the link between electrical breakdowns and fires. How many times have your heard the cause of a fire was faulty wiring? According to the National Fire Protection Association (NFPA), electrical distribution breakdowns each year are responsible for 9 percent of fires in commercial structures. HSB UNDERSTANDS THE RISKS HSB people understand equipment - how it works, how it can fail, and how much it costs to repair. We also understand the businesses you insure, their equipment and operations, and how a breakdown is related to other exposures. WE HELP PROTECT THE BOTTOM LINE HSB tracks emerging exposures to help manage risk. We work with you to protect your customers and keep pace with new developments. Hartford Steam Boiler - One State Street - P.O. Box 5024 - Hartford, CT 06102-5024 Phone: 860-722-1866 - Fax: 860-722-5106 ©1996-2008 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.