Transcript BC from an Insurance Perspective”

Preparing For Catastrophic Losses
Hospitality Asset Managers Association
October 3, 2008 ~ Austin, Texas
Presented by:
Robin H. Camp, F.C.I.P., AON Risk Services
Randy Goodman, SPPA, Goodman-Gable-Gould/
Adjusters International
Moderated by:
Heather (Castellari) Turner,
Broadreach Capital Partners/Maritz Wolff & Co.
Today’s Discussion
• Preparing for Disasters
• Disaster Strikes – What Do We Do Next?
• Different Approaches to Adjusting Claims
Goal
• To be prepared should you suffer from
a loss incident.
• To know where to turn, how to arrange
for immediate emergency services and
how to fluidly begin the claims process.
By definition, disasters are rarely tame or predictable, and few
businesses are truly prepared for the full extent and nature of a
disaster when it does strike. While recovery is never easy, there
are a few key steps you can take before and after an event to
help make your insurance claim – which is, after all, the basis for
your financial recovery – go just a bit more smoothly.
Photographs will be important to prove the extent
of your damages later. Take new photos every
year, or after any development to the property.
Make
sure your will
business-critical
client
Photographs
be important
torecords
prove and
the extent
communications
systems
backed
upphotos
off site so
you
of your damages
later.are
Take
new
every
can immediately retrieve key client information, financial
year,
or after any development to the property.
documents, and sales histories. This responsiveness can
make or break your public relations and disaster recovery
efforts.
Have a response team in place through a practiced
business continuity plan. Integrate your experts into
this plan, including claims consultants, general
Photographs
will
be important
to Be
prove
extent
contractors, and
insurance
brokers.
surethe
your
of
your damages
later. Take
photos every
insurance
policy is designed
to new
be responsive
to your
exact
year, needs.
or after any development to the property.
Catastrophe Scene
• What’s impacted?
– Movement
– Communication
– Claims handling
– Manpower
• Consider and respond to health &
safety issues.
• Activate your business continuity
plan.
• Protect your property from further
damage.
• Provide proper notice to your
insurer/broker.
• Contact your Lender.
• Appoint a senior executive as
your team leader.
Ideally, you should not hire a
contractor to rebuild your business
until you have agreed on a
repair/replacement scope of damage
and an estimate of pricing with your
insurance company. Then you will
know how much you have to spend
on reconstruction.
Photograph or videotape the scene,
including the “debris pile,” before
you begin any cleanup efforts. When
estimating damages, do not rely
solely on your historical records.
Instead, secure replacement cost
estimates.
Read and make sure you understand
your rights and obligations under your
insurance policy before entering into
any serious discussions or
negotiations with your carrier. Seek
out a professional to help you
understand what your policy actually
covers and, just as important, what it
doesn’t.
Keep a log of all activities and save all
receipts after the damage, including
those for property replacement and
extra expenses. This will provide the
documentation a disaster recovery
professional requires to present
expenses to your carrier, and you will
know which expenses will be
reimbursed as you rebuild.
Policyholders often expect the
insurance company to tell them what to
do to save their business. Insurance
company adjusters are simply auditors
of your property insurance claim. Only
you know your business and what’s
best for recovery. Your best business
decision will likely be the appropriate
decision as it relates to your insurance
claim
The insurance adjuster sent by your
carrier to evaluate the damages is
exclusively working for the insurance
company, not for you. It’s your
responsibility to document and submit
your claim. Make sure you have
someone who knows insurance inside
and out on your side to ensure that you
get a full, fair and expedited settlementwhile you concentrate on maintaining
your operations, not on claim details.
Understand that your claim will have to
be verified.
How Do Claims Get Adjusted?
It is important to note that it is the insured’s obligation to prove
its loss to the insurance company(ies). The insurance
companies will retain numerous consultants to analyze a loss,
including:
–
–
–
–
–
–
–
–
Adjuster
Forensic Accountant
Building Consultant/Estimator
Salvor/Inventory Consultant
Engineer
Attorney
Industrial Hygienist
Equipment & Machinery Expert
• What options are available to the insured to level the
playing field in measuring and calculating the recoverable
loss under various insurance policies?
Potential
Coverage Issues
• Code or Ordinance Coverage – Do you have
it? Is it enough?
• Debris Removal Coverage – How far does it
go?
• Mold – Is it covered? Excluded? Capped?
• Windstorm property deductible – 2, 3, 5% of
policy limit or insured property & time
element values?
Potential
Coverage Issues (continued)
• Business Interruption & Extended
Period of Indemnity
• Extra Expense – How can it help? How
much is needed?
• Civil Authority
• Utility Service Interruption
Important Aspects to a
Successful Adjustment
• Understand your insurance policy before a loss
occurs.
• Establish a clear line of communication with the
insurance company personnel.
• Remember that the adjuster appointed by your
insurance company will not make your claim and will
not manage your process.
• Recognize the importance of presenting a well
documented claim that is clear and presentable and
easily understood.
• Presenting information in a timely manner to the
insurance company to assure a smooth claims
process
GGG/AI
FULLY REVIEW your insurance coverage
DETERMINE policy compliance issues
DEVELOP a claim management plan
INTEGRATE the claim with your restoration efforts
to ensure efficient results
INVESTIGATE & QUANTIFY the magnitude of the loss
FACILITATE advance payments
COORDINATE inspections & audits required by the insurer
IDENTIFY the most qualified specialists to develop & support your claim
COMPLETE detailed valuations of building, equipment & bpp losses
WEIGH THE BENEFITS of updating versus replacing damaged property
EVALUATE sales trends to forecast business interruption
FORMULATE solutions to minimize business interruption impact
ASSEMBLE comprehensive claim presentations with supporting data &
expert reports
NEGOTIATE on your behalf; and
EXPEDITE the entire process
www.gggai.com
Preparing For Catastrophic Losses
Hospitality Asset Managers Association
October 3, 2008 ~ Austin, Texas
Thank you
www.hamagroup.org