Property Insurance Claims-Handling Tips

Here is some good advice for risk managers as hurricane season looms. Knowing what to do before during and after a property loss can be crucial, whether those losses be caused by windstorm, fire or other perils.

By GERRY L. ALONSO, senior vice president of claims at FM Global

BEFORE:

Statesman or Spoilsport? (07/24/12)
Risk Confessions (06/01/12)
Splitting Silos (10/11/12)
Giving Peace of Mind (08/22/12)
Murphy Proofing (09/15/12)

-- Meet with your claims representative to make sure you understand how your policy responds in the event of a crisis and to develop a loss management plan.

-- Identify insurance coverage gaps and other areas of vulnerability.

-- Develop clear guidelines for notification, documentation and salvage efforts.

-- Identify needs unique to your business operations.

-- Provide clear instructions for your emergency response team to use during a disaster.

-- Avoid delays due to inadequate record-keeping procedures so that vital records and important documentation are not lost.

DURING:

-- Notify your insurer of your loss immediately; include the date, time, cause and location of the loss.

-- Protect your property from further damage wherever possible by restoring fire-protection systems, repairing leaks, providing temporary support and restoring power.

-- Mitigate the resulting financial impact by utilizing alternate facilities and existing inventory and by expediting repairs.

-- Document your loss by collecting the information you'll need to file and support your property loss and business-interruption claims.

AFTER:

-- Provide appropriate documentation for property damage and business interruption.

-- Reflect upon whether your loss could have been prevented. If so, develop and put measures in place to help prevent such a loss from occurring again.

June 1, 2010

Newsletter Sign-up