Managing Risk in Higher Education Adjusting a major flood claim - a university case study Maggie Cowing BSc(Hons) ACII FCILA

Adjusting a major flood claim Cause Material damage aspects Business interruption aspects Claim management Recovery Lessons learned

University of Hull Established 1928 Circa 16-17,000 students Circa 2,300 employees Revenue approx £130m Property/BI cover No previous experience of flooding

June 2007 Floods Torrential, prolonged rainfall Surface drains & sewers couldnt cope 1 in 150 year event Tens of thousands of claims

Cause Flood 1 – 15 June 07 Flood 2 – 25 June 07

Material damage aspects - Buildings

Strip out, dry and clean Prepare scope of works Procurement – pre tendered rates or by competitive tender Adjuster checks and approves scope and cost Have work carried out…..

Material damage aspects - Buildings ….but rarely go back exactly as was Compliance with public authority requirements Flood resilient repairs More convenient/economical layouts Speed of repairs (business interruption) Work on notional reinstatement costs

Material damage aspects - Contents

Dry and clean Examine possibility of repair or replacement Obtain estimates for repair or replacement Adjuster checks and approves scope and cost Have work carried out…..

Material damage aspects - Contents ….but rarely go back exactly as was Racking no longer available Better machines now available Non-replacement of all small items Speed of repairs (business interruption) Work on notional reinstatement costs

Business Interruption aspects M & E loss to library Loss of Hall of Residence heating & hot water Damage to Hall of Residence and social centre Shortage of accommodation in area due to flood New academic year starts 17 Sep Students choices made in July Halls - £500K pa at risk, tuition fees - £600K pa

Business Interruption aspects Temporary transformer for library

Business Interruption aspects

Temporary transformer for library Temporary boiler plant for hall

Business Interruption aspects

Temporary transformer for library Temporary boiler plant for hall Temporary floor coverings for hall Costs of expediting work Thanks to a great effort on the part of university staff in all areas, all work was completed to time Unavoidable small loss of GP from café Otherwise all revenue secured

Claim management Series of meetings Actions/minutes agreed Used as agenda for next meeting Development of spreadsheets detailing loss Live system with version control Prompt interim payments Early settlement once quantum agreed

Recovery Extreme weather event – 1 in 150 Yorkshire Water reduced capacity of drainage system pumping station reduced capacity of sewerage system Need to tie in to damage or extent Extensive flood modelling required

Lessons learned Claim management and communication Pre-appointment of contractors no flood inflation prompt attendance OJEU requirements avoided Use of external professionals Flood resilient repairs Business interruption cover