Respect the Claim: A Panel Discussion on Real Life Claims CLM001 - - PowerPoint PPT Presentation

Respect the Claim: A Panel Discussion on Real Life Claims

CLM001

Speakers:

• Paul Boatman

Director of Risk Management Prometheus Real Estate Group, Inc.

• Scott Ritto

Vice President, Risk Management Kilroy Realty Corporation

• John Shaw
• Sr. Vice President

Marsh

• Jeff Taxier

Education & Training Manager American Technologies, Inc.

Learning Objectives

At the end of this session, you will be able to:

• Explain the steps to take to prepare for both common and

unexpected claims

• Describe the key players to have in place prior to a claim
• Review insurance policies to ensure the most appropriate

coverages for the risks you may face with actual claims

( 3 )

Are You Prepared?

If disaster strikes your operation, do you know what to do next?

( 3 )

( 4 )

A pipe has burst in your office building and the entire first floor is flooded. A fire strikes your facility causing extensive smoke damages that threatens to cut your production rate for the upcoming weeks.

What If …

A hurricane blows the roof off of your corporate headquarters.

( 5 )

Contingency Planning is Critical

One of the BEST WAYS to survive and recover from a natural or man- made disaster is to create a contingency plan BEFORE disaster strikes.

Your plan should include:

Risk assessment Continuity planning Communication plans Provisions for back-up utilities, alternative communication sources and medical supplies Equipment and documentation inventory Identification of equipment staging sites Identification of command center location and set-up Specific job assignments and contact information Identify emergency resources and key vendors to assist in recovery

Keys to a Successful Contingency Plan

 PRIORITIZE establish key objectives  COMMUNICATE to employees, tenants, partners  PRACTICE may not make perfect but is vital  PARTICIPATE in community disaster preparedness events  UTILIZE a variety of media  UPDATE regularly so plan is not out of date

Learn, Learn, Learn…

Claim Preparation

 Review your contingency plans and identify specific business needs  Take a good look at your insurance policies to verify they meet your needs  Interview prospective vendors for key responsibilities – these may include restoration companies, engineers, attorneys, forensic accountants etc.  Develop Agreements that satisfy your needs and also meet with the insurance carrier’s requirements where appropriate  Communicate agreement(s) to all necessary personnel

Panel Discussion – Scenario 1

• Discussion led by Scott Ritto, Vice President Risk

Management for Kilroy Realty Corporation

• Fire loss to retail mall involving multiple tenants

Street View of Fire

Aerial View of Fire

Interior of Mall - Aftermath

Emergency Response

• Assess the situation –

what is going on?

• Safety first – evacuation

including parking areas

• Communication and

coordination

• Command and control

– internal/external

• Manage emotions
• Account for personnel

Crisis Management/Communication

• Is this a local, regional or

national crisis?

• Crisis management team

– activate?

• Who needs to respond?
• Communicate with

senior leadership

• Communicate with

insurance broker and carrier

• Communicate with media

Business Recovery

• Alternate operations
• ffice?
• What is the timeframe?
• Identification of critical

resources

• Communicating with

tenants and customers

• Prioritizing the recovery –

What can be accomplished and when?

• Goal - returning to

business as usual

Claim Realities

• Pre-planning and

exercising plans are key

• Expect the unexpected –

What if?

• Individual mall BC plans

very important

• National vendor

agreements

• Power supplies

and lighting

• Updated contact lists –

soft and hard copies

Panel Discussion – Scenario 2

• Discussion led by Paul Boatman, Director of Risk

Management, Prometheus Real Estate Group, Inc.

• Water loss to office building with contract and

claim issues

Good Morning!

Filing and Storage Area

Typical Work Area

Just The Facts…

• Drinking water filter

installed in kitchen area

• f company home
• ffice for appx. $2,000
• Overnight the filter

coupling valve fell off causing flooding to thousands of square feet of office space by the morning

Origin and Cause of Loss

Claim Damages

• Loss of productivity
• Many employees had to

be relocated for up to three months

• Total damages around

$450,000

• No subrogation due to

“hold harmless” wording in plumber contract that installed filter

Claim Issues

• Claim adjuster left

halfway through claim

• Company approved

restoration contractor submitted invoice directly to company and company paid it prior to insurance company review

• Lost productivity

Claim Resolution

• Coverage resolved in

favor of named insured

• Restoration company

invoice reduced by 50% after insurance adjuster review and restoration company reimbursed insured the

• verpayment!
• Clean drinking water

comes with a cost

Claim Realities

• Internal contract review

and approval process updated

• Relationships with

carrier and broker are key to resolving issues

• Approved vendors

should be vetted by company and carrier

Panel Discussion – Insurance

• Discussion led by John Shaw, Sr. Vice President,

Marsh

• Prepare for your claims before they happen

Variety of Risks – Partner with Broker

• Standard risks such as

fire, water, vandalism

• Catastrophe risks such

as hurricanes, earthquakes and floods

• Layers and deductibles
• Business interruption

Common Questions We Get

• Sublimits – what are

those and how do they limit my recovery?

• Can you explain my

variety of deductibles?

• What’s really covered in

business interruption?

• How do I account for

extra expenses to keep my business running?

More Questions We Get

• How is the claim

handled if we have multiple policies that may apply?

• Can we select our own
• Adjuster
• Expert
• Engineer
• Accountant
• Restoration company?

Some Suggestions

• Develop claims teams

for different risks and locations

• Hard and soft copies of

contingency plans

• Contract review process
• Stay current on

evolving risks

• Protect company data

Questions and Answers

Presenter Contact Information

• Paul Boatman, Director of Risk Management, Prometheus

Real Estate Group, Inc. pboatman@prometheusreg.com; 650-931-3459

• Scott Ritto, Vice President, Risk Management, Kilroy Realty

Corporation; sritto@kilroyrealty.com; 310-481-8419

• John E. Shaw, Sr. Vice President, Marsh;

john.e.shaw@marsh.com; 213-346-5218; Ca. license #0437153

• Jeff Taxier, Education and Training Manager, American

Technologies, Inc. jeff.taxier@ATIrestoration.com; 520-203-5004