Inside the HVAC Risk and COVID-19 Exposure in Restaurants, Office Buildings

Inside the HVAC Risk and COVID-19 Exposure in Restaurants, Office Buildings

COVID-19 is spread either by inhaling respiratory droplets or, more rarely, touching a contaminated surface and then your eyes, according to the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC). However, aerosol transmission of the disease cannot be ruled out, says WHO, with the possibility that the virus can be transmitted through the heating, ventilation, and air-conditioning systems (HVAC). WHO guidelines state that airborne transmission of the coronavirus may be possible indoors, especially for people who spend extended periods in crowded, poorly ventilated rooms.

Check Out HVAC Systems, Make Modifications

Because of the concern over airborne transmission, businesses located in corporate offices, restaurants, retail stores, and other buildings should take precautionary measures to minimize the potential spread of the virus via their HVAC systems as they phase-in reopening. The optimum measure is to reconfigure HVAC systems to bring in more fresh air to reduce the amount of re-circulated air that potentially carries viral particles. In lieu of shutting down overnight or on weekends, for instance, run the HVAC system without interruption to increase the replacement of air and minimize airflow speeds.

Older systems might require more complex – and expensive – changes like replacing fixed-speed motors with variable-speed motors for greater control and a lower-speed airflow; introducing sophisticated airflow-control systems, such as those that are sensitive to pressure, to allow for smoother adjustment of airflows; and installing high-performance air-purification systems.

The CDC recommends that businesses with HVACs that have been shut down or put on setback during the pandemic lockdown review and follow the guidelines found here: ASHRAE Standard 180-2018, Standard Practice for the Inspection and Maintenance of Commercial Building HVAC Systems.

Low-tech strategies for preventing airborne viral transmission include: rearranging furniture to avoid having several people on the same airflow “corridor”; allowing natural ventilation by opening windows in buildings with basic HVAC systems, which cannot filter or pull in outside air, to increase the exchange of fresh air; and locking windows in buildings with central HVAC systems, when permissible, to reduce indoor temperature changes. Consider using portable high-efficiency particulate air (HEPA) fan/filtration systems to help enhance air cleaning. Also, ensure exhaust fans in restroom facilities are functional and operating at full capacity when the building is occupied.

Outdoor Dining at Restaurants

Several states are only allowing outdoor dining at restaurants due to air circulation concerns and the close proximity of patrons even with reduced seating. California, for example, which initially allowed indoor dining with restrictions in place reversed its guidelines to only permit outdoor dining after a surge in coronavirus cases. According to the state’s latest directives, “an outdoor dining facility must allow for the free flow of outdoor air through the entire space. To meet this requirement, the seating area must have at least three sides open, with no more than four-foot-high walls that do not impede the free flow of air through the space. Umbrellas, canopies, awnings, and other shade structures are allowed only if they do not have sides.”

In addition, the CDC concluded that an asymptomatic patient in China transmitted the virus to families at two nearby tables in a restaurant, according to a report by McKinsey. “Based on the restaurant layout, seating arrangements, and smear samples from air-conditioning inlets and outlets,” the report indicated that “the CDC found that the coronavirus was likely transmitted when strong airflows from a nearby air conditioner spread large droplets from the infected person. These droplets traveled more than one meter—further than usual, but less than the distance aerosols can typically travel.”

While the HVAC systems in the transmission and mitigation of COVID-19 in buildings are yet to be fully tested and confirmed, proper design, installation, and maintenance of these HVAC systems are key to maintaining healthier indoor air quality and more efficient built environments.

Specific Technologies Driving Insurtech Investment in 2024

Understanding the Funding Decline The decrease in funding does not necessarily spell trouble for the insurance sector but instead highlights a strategic shift, the report suggests. “The insurance industry, like many sectors, is focusing on the most promising ventures with substantial insurance potential,” the report explains. “Insurers are directing their investments toward key areas and current trends such as embedded insurance, employee benefits, and cyber risk management. This strategic investment approach signals a forward-looking mindset within the industry.” Three Key Insurtech Trends for 2024 The report identifies three major trends shaping insurtech investments in 2024: Public Insurtech Companies: Financial and Growth Strategies The report also notes that public insurtech companies are prioritizing revenue growth as their main goal. These firms are restructuring their financial strategies to boost cash flow and capitalize on rising revenue streams. Their growth prospects are supported by expanding asset portfolios and strong market demand. “Public insurtech companies are focusing on revenue growth and optimizing their financial frameworks to increase cash flow,” the report states. “The growth potential for these companies is driven by increasing revenue opportunities, broadening asset bases, and a robust market for their services.” In summary, while global insurtech funding saw a decline in 2023, the industry’s focus on GenAI, digital process management, and connected insurance technologies is setting the stage for a dynamic and forward-looking 2024.

Business

Insurer Secures Unanimous Supreme Court Victory in New York Choice of Law Dispute

In the world of sports, a clean sweep, a shutout, or a perfect game is the ultimate achievement. In the legal arena, a unanimous decision from the U.S. Supreme Court is equally rare and significant. In a notable legal triumph, Great Lakes Insurance SE achieved a unanimous 9-0 victory in the Supreme Court on February 21, 2024. This victory follows a protracted legal battle that began in the District Court of Pennsylvania, advanced to the U.S. Court of Appeals for the Third Circuit, and culminated in the Supreme Court’s decisive ruling. Background of the Case: Great Lakes Insurance SE v. Raiders Retreat Realty Company The heart of the dispute was the insurance contract’s clause selecting New York law to govern any future legal conflicts. Although the financial implications of this case were relatively minor compared to the broader marine insurance industry, the insurer’s determination to uphold a crucial maritime legal principle has significant long-term implications for marine insurance. Faced with the insured’s counterclaims—including allegations of breach of fiduciary duty, insurance bad faith, and violations of Pennsylvania’s Unfair Trade Practices Law—the insurer was confronted with serious risks. Such claims could lead to the shifting of attorney’s fees, treble damages, and more, which might normally encourage insurers to settle rather than risk pursuing justice. However, Great Lakes Insurance, supported by The Goldman Maritime Law Group, opted to challenge the Third Circuit’s decision and seek clarity from the Supreme Court. Supreme Court Ruling: A Landmark Decision In a landmark ruling, Justice Brett Kavanaugh affirmed that choice of law provisions in maritime contracts should be upheld by default. This ruling is a major victory for establishing a consistent federal standard in maritime law and avoiding a patchwork of state laws that could complicate marine insurance disputes. The Supreme Court’s decision overturned the Third Circuit’s earlier judgment, which had questioned whether Pennsylvania’s public policy concerns might override the insurance contract’s choice of New York law. By upholding the New York choice of law clause, the Supreme Court eliminated the extra-contractual bad faith claims under Pennsylvania law, thereby ensuring that the dispute could be resolved based on the merits of the insurance claim itself. Significance of the Supreme Court’s Decision This ruling represents a significant advancement in maritime law, affirming that choice of law clauses in maritime contracts are generally enforceable. The decision establishes a clear, uniform legal framework for resolving maritime contract disputes, which will streamline the process and ensure fair adjudication of future insurance claims. Justice Clarence Thomas’s concurring opinion was particularly notable for its criticism of the 1955 Wilburn Boat v. Fireman’s Fund Insurance decision, which had previously influenced maritime insurance law. Thomas argued that Wilburn Boat was incorrectly decided and stressed that a uniform and enforceable set of rules is essential for the development of maritime law. Impact on the Marine Insurance Industry The Supreme Court’s decision sets a “bright-line” rule affirming that choice of law clauses are valid unless there is a strong argument against the selected jurisdiction. By endorsing New York’s insurance laws as a reasonable choice, the ruling supports a more consistent and predictable legal environment for marine insurers. This decision represents a major step forward in maritime law, helping insurers better assess risks, determine premiums, and ensure fair and efficient resolution of maritime insurance disputes.

Inside the HVAC Risk and COVID-19 Exposure in Restaurants, Office Buildings