Responding to a Property Loss

Respond to the Loss

Prevent Harm to Associates

• If appropriate, call 911 – Report the incident to authorities and follow instruction.
• Evacuate personnel to the designated assembly area or other preferred meeting place.
• Conduct a brief site assessment to eliminate life threatening hazards. For example, turn off and lock-out all energy sources in the vicinity of the loss area.

Report the Claim

• Report the claim to McGriff Claims Central at 1-800-990-4228, or email InsClaims@McGriff.com or directly to your insurance carrier.
• Notify your McGriff broker of the incident.

Protect Damaged and Nearby Property from Further Loss

• Take reasonable action to protect the damaged property from further damage. Actions may include temporary repairs and protection from elements. The expertise of professional vendors specializing in the mitigation of loss may be needed. Prior to authorizing any additional services, seek advice from the insurance carrier claims adjuster.
• Take photos of initial damage if possible.

Preserve The Scene and Document Loss

Take Inventory of Damaged Property

• Separate contents according to damaged and undamaged items. Prepare an inventory list of damaged property.
  • List quantity, description, replacement cost and amount of loss.
  • Attach bills, receipts and other related documents.
• Retain damaged property until a claims adjuster approves disposal unless unsafe to do so.

Obtain Damage Estimates

• Set up an appointment to meet with the insurance carrier assigned claim adjuster, or the property damage appraiser, to view the loss and discuss damage.
• Work with the adjuster/appraiser on the scope of the damage and the necessary repairs.
• Discuss the restoration process with the adjuster/appraiser as well as the estimated length of restoration.
• Note any discrepancies in estimated values.

Restoration

Arrange for Repairs

• Contact at least two, ideally three, reputable contractors to agree to give you a detailed estimate for repairs. If the insurance carrier provides a list of approved contractors, refer to that list. Do not authorize repairs until the claim adjuster has given you the authority to do so.
• It is important that the adjuster and your contractor of choice interact and come to an agreement on the cost of repairs, method of repairs, etc. When the repair estimate is agreed upon, you may be asked to file a partial Proof of Loss form for that amount.
• Work with the adjuster and the insurance company to determine how salvage from the loss will be handled. Be prepared to provide additional documentation as requested by the adjuster.

Communicate Appropriately to Key Individuals

Communication is performed in no particular order and is often conducted simultaneously. It is suggested that Legal Counsel be consulted before making formal statements.

Company Senior Leadership

• Notify the most critical need-to-know employees first. (Executives, Human Resource, Plant Manager)

All Other Company Personnel

• Notify employees of the status of the event as needed

Affected Clients

• If appropriate, notify customers and clients who will experience a direct impact to their operations as a result of the loss.

Public Relations

• If necessary, designate an appropriate management team member or Public Relations firm to speak on behalf of the company.
• Remind employees of the media policy and to refer all inquiries to the designated individual or firm.

Claim Management

Proactively Manage Claim Related Expenses and Reimbursement

• If the loss is substantial, some carriers will allow policyholders to request a monetary advance to assist with the debris removal, protection expenses and any other out-of-pocket expenses incurred as a result of the loss.
• Record all expenses, such as:
  
  • Wages for employees involved in clean up or repair
  • Overtime paid for employees to fulfill orders that would have been completed during normal hours if not for the loss
  • Outside vendors involved in clean up, repair, etc.
  • Leasing of temporary space until your facility is repaired
  • Leasing or purchase of any items necessary to continue operations
  • Repairs of damaged property
  • Replacement of damaged property
  • Expediting expenses
• Document any business lost due to the necessary suspension of your operations, such as cancelled or refused orders.
• Some of the above items could be considered Business Interruption expenses and may be reimbursable under your policy. Notify the adjuster of any loss of income as a result of the event. While this will be the last portion of the claim that is resolved, the insurance carrier should be put on notice. It is common for a carrier to assign an accountant to determine the extent of a business income loss. You may be asked for detailed financial records. The business income loss will be finalized when the period of restoration is complete or the limit of liability is reached.

Additional Loss Considerations

• Expect to be contacted by the claims adjuster within 48 hours of reporting.
• Document all steps you have taken in the claims and restoration process.
• Document every expense you have and retain all receipts.
• If you are unsure if you have Business Income insurance or how your policy will respond, contact your McGriff representative for further guidance.
• Advise McGriff immediately if your circumstances change, particularly if this loss will have a greater effect on your business than originally anticipated.