coop planning & property insurance

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Transcript coop planning & property insurance

Continuity of Operations Planning
Continuity of Operations
“Is an effort within individual executive departments and agencies to ensure that Primary
Mission Essential Functions continue to be performed during a wide range of emergencies,
including localized acts of nature, accidents, and technological or attack-related
Essential Functions
“Those functions an organization must continue in a continuity situation”.
“The ultimate goal of continuity in the executive branch is the continuation of National
Essential Functions. In order to achieve that goal, the objective for organizations is to
identify their Essential Functions, and ensure that those functions can be continued
throughout, or resumed rapidly after, a disruption of normal activities. The Federal
Government has an important partnership with other non-federal government entities and
with private sector owners and operators who play integral roles in ensuring our homeland
Continuity of Operations Planning
What emergencies may result in the interruption
of your agency’s business operations?
Continuity of Operations Planning
Property Insurance
• “All direct risks of physical loss or damage… not otherwise
Types of Covered Causes of Loss
• Fire
• Frozen Pipes & Water Damage
• Hail
• Flood
• Windstorm (tornado, hurricane)
• Terrorist Events
• Arson
• Accidental Breakdown of Equipment
Phase I: Readiness and Preparedness
• Development of the plan
• Test, Train, and Exercise
• Risk Management
Phase I: Readiness and Preparedness
Risk Assessment
Helps to determine an organization’s vulnerability to
hazards, including human-caused incidents that pose a
threat to the facility or personnel. Factors to consider when
comparing hazards:
• Frequency of occurrence.
• Potential magnitude and intensity.
• Probable spatial extent and duration.
• Speed of onset.
Phase I: Readiness and Preparedness
Statewide Property Insurance Program
• Swiss Re “CatNet” – natural hazards assessment based upon
geographic location
• Catastrophe Modeling – computer simulation of realistic
disaster scenarios based upon your agency’s exposures
• Hartford Steam Boiler Property Surveys – on-site analysis of
fire and related hazards
• Infrared Thermography – onsite analysis of electrical
• American Appraisals – replacement cost valuation of your
Phase I: Readiness and Preparedness
Other Resources:
• Local/State Fire Marshal (AHJ)
• Local/State/Federal Law Enforcement
Current threat levels
Physical security analysis
• Maps – 5 mile building radius
Potential targets
HazMat sites
Phase I: Readiness and Preparedness
Budgeting and Acquisition (CGC 1):
• Through the budgeting process, an organization’s leaders
and staff will ensure critical continuity resources are
available to continue performing the organization’s
Essential Functions before, during, and after a continuity
– Identify and provide continuity funding and specific budgetary
requirements to establish and maintain the requirements for all
elements of a viable and resilient continuity capability.
– Identify provisions for the acquisition and procurement of
necessary equipment, supplies, resources, and personnel that
are not already in place at the continuity facilities on an
emergency basis and needed to sustain operations for up to 30
days or until normal operations resume.
Phase II: Activation
Activation of continuity plans and all associated
procedures necessary to support the continued
performance of Essential Functions.
If your property is damaged as a result of a covered
cause of loss, contact SORM to initiate claims process.
Phase III: Continuity Operations
Activities to continue essential functions, including
communicating with supporting and supported
organizations, customers, and stakeholders.
Emergency Relocation Group
Team that continues agency essential functions.
Phase III: Continuity Operations
How Property Insurance Supports Continuity of
• Coverage is tailored to offset the financial costs
resulting from an event
– Potential advance payments for large scale disasters
• Pre-loss
– Preservation of Property – funds expended to prevent
impending disaster
– Emergency Vacating Expense – cost to evacuate
students, patients, occupants
Phase III: Continuity Operations
How Property Insurance Supports Continuity of
• Post-loss
– Extra Expense – additional costs expended to
maintain operations
– Business Interruption – loss of revenue due to loss
– Civil Authority – prevention of access to facilities
Phase IV: Reconstitution
“The Process by which surviving and/or replacement
organization personnel resume normal organization
operations from the original or replacement primary
operating facility”.
Implemented when the emergency, or threat of emergency, is over,
and organizations initiate operations for resuming normal business
operations. Organizations can plan for reconstitution prior to
activation of their continuity plan and concurrently with continuity
Phase IV: Reconstitution
Phase IV: Reconstitution
• Insurance will repair or replace facility with like kind
& quality
– If building codes have changed, upgrading to new
code requirements
– Extra expenses required for returning equipment
to original location
• Support of SORM Coordinating Claims Adjuster
– York Risk Services helps facilitate claim payments
on behalf of SORM agencies
Phase IV: Reconstitution
• Speed of payment
– Insurance
• Partial advance payments possible in 1-2 weeks
• Continual payments until final closeout of damages
– FEMA Public Assistance Grants
• Only applies for Federally Declared Disasters
• Lengthy claims process, continual audits of
distributed funds
• Recent reports show average FEMA closeout
period to be 10 years
– State Legislature
• Must get approval
• Timing of payment?
Continuity of Operations
Planning and Property Insurance
Andres Campo, ARM
Chris R. Connelly, ARM-P
Director of Risk Management
Area Senior Vice President
Email: [email protected]
State Office of Risk Management
Phone: (512) 936-1561
Fax: (512) 370-9029
Email: [email protected]
Arthur J. Gallagher Risk Management Services, Inc.
200 S. Orange Avenue, Suite 1350
Orlando, FL 32801
Direct: (407) 563-3513
Mobile: (410) 905-7180
Toll-Free: (800) 524-0191 Ext. 3513
Fax: (407) 370-3057