When you are notified of a serious loss, you will become responsible for a number of things, both in respect to the insurance contracts and your own management.
The following guideline will help you decide what must be done first:
- All losses should be reported directly to:
Joel Carey, Partners Indemnity
Office: (905) 336-1302
Mobile: (905) 876-6411
Fax: (905) 681-1054
- Alert your people to expect the Adjuster and/or Insurance Company representatives.
Many other people in your organization will need to know about the loss as well. You should set up special work orders, job numbers and other accounting procedures to enable you to accumulate all your costs. In the first few days after loss, it can be very difficult to keep track of who is doing what and why.
Provide descriptions of job numbers and be sure that overtime pay is separated because you may need this breakdown later. The straight time labour will go against the property damage portion, and the overtime to the business interruption claim.
- Restore Fire Protection as Quickly as Possible
This means replacing sprinkler heads, arranging for temporary standby hose lines, recharging extinguishers and automatic CO2 systems as soon as possible, capping broken lines and getting them back into service. This is important because your property is particularly vulnerable until fire protection is back in operation.
- Protect Property from Further Damage
In addition to restoring protection, you should take whatever action possible to preserve the property from further damage, particularly from water, smoke or the weather. Your personnel should take immediate emergency measures to minimize damage. Other more elaborate but still temporary measures, should be cleared with the Adjuster, and when possible, their authorization should be obtained before proceeding. There is a simple rule of thumb which helps decision making in the very early stages of a loss: when in doubt, act as if you had no insurance.
As soon as possible, have personnel clean up and separate the damaged from the undamaged, and get to work on saving what can be saved. Dry out all electrical equipment and motors and take rust prevention measures.
- Permanent Repairs or Replacement
Before authorizing permanent repairs, discuss the situation with the Adjuster and get agreement on the scope of repairs and on the contractors who will be asked to do the work. Find out if more than one bid will be necessary.
If the contractor is accustomed to working on insurance claims, they should know what type of detail is required in the proposal. If not, arrangements should be made for them to meet the Adjuster and set up the ground rules. A contractor’s bid without proper details and itemization is unlikely to be useful.