Preparing For Catastrophic LossesHospitality Asset Managers AssociationOctober 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
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. Goal
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.
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 business-critical client records and communications systems are backed up off site so you can immediately retrieve key client information, financial 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 contractors, and insurance brokers. Be sure your insurance policy is designed to be responsive to your exact needs. Photographs will be important to prove the extent of your damages later. Take new photos every year, 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 settlement- while 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 aSuccessful 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 DETERMINEpolicy compliance issues DEVELOPa claim management plan INTEGRATEthe claim with your restoration efforts to ensure efficient results INVESTIGATE & QUANTIFYthe magnitude of the loss FACILITATEadvance payments COORDINATEinspections & audits required by the insurer IDENTIFY the most qualified specialists to develop & support your claim COMPLETEdetailed valuations of building, equipment & bpp losses WEIGH THE BENEFITS of updating versus replacing damaged property EVALUATE sales trends to forecast business interruption FORMULATEsolutions to minimize business interruption impact ASSEMBLEcomprehensive claim presentations with supporting data & expert reports NEGOTIATEon your behalf; and EXPEDITEthe entire process www.gggai.com
Preparing For Catastrophic LossesHospitality Asset Managers AssociationOctober 3, 2008 ~ Austin, Texas Thank you www.hamagroup.org