the adjuster’s casebook what does this look like in practice - some cases to highlight the claims...
TRANSCRIPT
The adjuster’s casebook
What does this look like in practice - some cases to highlight the claims
issues but from a perspective of commercial claims
What are we dealing with when a flood occurs?
EMPLOYEES
SUPPLIERS
CUSTOMERS
PRODUCTS
What are we dealing with when a flood occurs?
EMPLOYEES - Has their home been affected?- Will they need time-off work?- Can they get to work?
SUPPLIERS
- Any damage to stock/WIP?
- Still able to produce?
- Can they deliver?
CUSTOMERS
- Any damage to their premises or stock
- Are they able to continue to produce?
- Can they receive deliveries?
PRODUCTS
- Will their demand for our products rise or fall due to the incident?
Some general principles
Crisis management
• Further investigation of damage & cause
• Site recovery plans - temporary
- - long term
• Business information gathering
• Communication planning
• Supply chain management
Key decisions are site based
Case study - the hotels
• City centre tourist hotel evacuated and heavily damaged by water - 6 months of repairs
• Hotel in west of city on higher ground unable to trade whilst isolated by flood water
– Claim for loss of revenue as access prevented by flood waters
– Claim for “branded” stock disposed of for major local event now cancelled
Hotel - Flooded - Damage
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Apr-01
Jun-01
Aug-01
Oct-01
Dec-01
Feb-02
Apr-02
Jun-02
Aug-02
Oct-02
Dec-02
Feb-03
Previous Year
Original Budget
Actual
Before Incident After Incident
Hotel - Cut Off - No Damage
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Apr-01
Jun-01
Aug-01
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Dec-01
Feb-02
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Aug-02
Oct-02
Dec-02
Feb-03
Previous Year
Original Budget
Actual
Before Incident After Incident
Case study - DIY
• Out of town shopping centre, loss at DIY shop
• Claim for potential loss of increased revenue for dehumidifier hire
• Dehumidifiers to be supplied from central store in South England
• Claim for stock loss that includes many sale items that could now be sold at full price
DIY Out of town store
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450
Apr-01
Jun-01
Aug-01
Oct-01
Dec-01
Feb-02
Apr-02
Jun-02
Aug-02
Oct-02
Dec-02
Feb-03
Previous Year
Original Budget
Actual
Before Incident After Incident
DIY Out of town store
0
50
100
150
200
250
300
350
400
450
Apr-01
Jun-01
Aug-01
Oct-01
Dec-01
Feb-02
Apr-02
Jun-02
Aug-02
Oct-02
Dec-02
Feb-03
Previous Year
Revised Budget
Original Budget
Actual
Before Incident After Incident
• Gross Profit ………. reduction in GP as a consequence of the Incident ……..
• Incident ……… loss, destruction or damage to property in use by the Insured at the premises ………
• Trend ……. Trend in the business both before and after the date of the incident which but for the incident would have …….
Summary of case studies
• Lack of response - pre-rehearse key issues
• This is not an ordinary scenario
• Are we comfortable with the different answers different “damage” produces?
• Consider businesses in surrounding areas
• “But for” the damage
Day one, no loss