Insurance Institute of Leicester The Life of a Major Loss The first 30 days… Up on screen to start

Kevin Dinsdale Geraldine O’Donaghue Regional Director, Major & Complex Loss team Crawford Global Technical Services Geraldine O’Donaghue Senior Investigator, Major & Complex Loss team All - Speak individually to introduce ourselves: 1.Terry. 2.Kevin, 3.Mark Kevin - Ask the audience – Are you all claims people? What sort of experience of we have in the room? Any of the exec guys? 2

Programme – First on the Scene! Property/BI/Forensics Preliminary Enquiries Causation / Policy Liability Background Checks Prepare Preliminary Report Liability Decision Loss Mitigation (Property) Business Continuity (BI) Kevin – Outline the scene (if not already done so by the Brokerbility introduction) Kevin – run through the running order for the session 3

Fire Investigation Control Unit Building Control Emergency Contractors First on the Scene Emergency Services Fire Investigation Control Unit Building Control Emergency Contractors Other Govt Agencies Press Manager / Owner Loss Adjusting Team Forensics Kevin – First on the scene 4

Loss Assessor Kevin

Preliminary Enquiries Initial Site Meeting Team Approach Policy Documentation Drones / Technology Contact Insurers from site Initial advice Update all Parties Kevin Initial meeting on site Team Approach Introduce all parties Walk around site Adjuster Questions Have information in BCP file – Brokers can add value here by briefing their clients I advance Broker Presentation / Surveys Lawyers notified/instructed early re recovery Background Reports Document Request Action Plan Agreed Next Meeting Adjuster Briefs Insurers Adjuster updates all parties, brokers included Prepare Prelim Report 6

Kevin

Causation / Policy Liability Identify potential causes: Electrical Work Cooking Related Fireworks Kevin Can’t confirm precise cause Discovered likely to be electrical - as started around new distribution board commissioned day before Forensic will have discussion with Fire Service Witnesses should hang around for interview. Particularly important if damage is severe Reported and seeking instructions – looks ok Questions regarding Adequacy Forensic rules out duct work Agreed to further tests Gas Bottle left by decorator exploded Reporting under privilege to Solicitors Preserve Witness Evidence 9

Policy Liability Issues Insurable Interest Maintenance Records Warranties Adequacy of Sums Insured: Is it Adequate? Terry Building owned by Directors Contents Claim at £500,000 VAR £1,000,000 Sum Insured £750,000 Is it adequate 10

Types of Screening Commercial Domestic Construction Engineering Casualty Good in Transit Liability BI Overall, we will look at anything.

For Screening The searches primarily completed are Land Registry Financial Searches Internet searches Telephone enquiries Which in turn produces a Screening Report.

The Screening report will Excluding warranties, conditions etc, Allow Insurers to make a decision on liability either for or against, based on information uncovered. Allow Insurers to investigate further if need be. Turnaround aimed for 48 hours.

When there is no screening or limited screening Blue Chip / Global entity Famous person Claim nearly complete or ongoing for a long time The Companies are based overseas

Our aims with screening Does the risk insured correspond with what we can see in the information we are looking at. Plus Any Claims Issues

Prepare Preliminary Report for AXA Kevin

Loss Mitigation (Property) Buildings Appointment of Consultants Establish Design Team Brief Identify Scope of Works Planning Considerations Contents Buildings Established 50% destroyed includes Main Reception, Kitchen, Bar, one Bedroom Block Bedrooms function suite conference facilities Appoint Design Team Agree Further measures to make safe / watertight / stabilise site. Appoint DMC R&D Survey Asbestos Planning Considerations Establish Brief Identify Scope of Works Planning Conditions s 106 Secure cycle storage 2 charging points in car park Fund improvements to highway Appeal or funding – bust 12 month indemnity period 22

Business Continuity (Business Interruption) Adequacy of the Sums Insured Initial Information Request Discuss Mitigation Strategies Consider Early Interim Payment Mark One our first considerations is always to establish the adequacy of the Sums Insured – If sums are inadequate, we need to manage the expectations of their client at the earliest possible opportunity We will look at this aspect again in a minute Information request for financials We will look at mitigation after we look at the adequacy of the Sums Insured Together with Insurers we are looking to get an interim payment made at the earliest opportunity. 23

Adequacy of Sums Insured – The Maximum Indemnity Period Mark Discussing the need for an adequate maximum indemnity period – in the case of this hotel a maximum indemnity period of 12 months would not be sufficient Discuss why 12 months is all too often selected but all to often inadequate 24

Business Interruption – Mitigation of the Loss Mark Throw the debate out to the delegates. How might we approach the mitigation of the Business Interruption for the hotel? 25

Policy Liability Accepted Interim Payment Made 30 Days Policy Liability Accepted Interim Payment Made Recovery Proceedings Initiated Action Plan Agreed Kevin to sum up the first 30 days 26

Questions? 27