1. Page 1 Recording of this session via any media type is strictly prohibited. Page 1 Disaster Planning and Managing Large Losses – The Ten Commandments of Success

2. Page 2 Recording of this session via any media type is strictly prohibited. Michael Horvath, Senior Vice President, Risk Management mhorvath@simon.com 317-263-7164mhorvath@simon.com Steven Sachs, EVP, Director of Real Estate and Hotel Practice, Willis steve.sachs@willis.com steve.sachs@willis.com 410-584-8935 John R. Cadarette, Jr., Managing Director, The Claro Group, LLC jcadarette@theclarogroup.com 310-581-6278 jcadarette@theclarogroup.com D.J. Corrigan, VP and Senior Executive General Adjuster, Cunningham Lindsey dcorrigan@cl-na.com 312-454-9200 X3911 dcorrigan@cl-na.com

3. Page 3 Recording of this session via any media type is strictly prohibited. Session Objectives Practical Hands On Information For You to Utilize in Developing Catastrophe Planning Catastrophe Planning Follows Basic Risk Management Process How To Involve Your Insurer As Part Of Good Risk Management And Successful Win/Win Loss Negotiations

4. Page 4 Recording of this session via any media type is strictly prohibited. What to Take Away Understand the wide-ranging impact of a successful disaster response program Recognize the critical elements of a disaster recovery plan Know when and how to negotiate and manage resources for large loss claims

5. Page 5 Recording of this session via any media type is strictly prohibited.

6. Page 6 Recording of this session via any media type is strictly prohibited. Preparation Preparation of Emergency / Catastrophe Plan  Risk Manager is Facilitator  Put Together a Team - Use All Resources – Operations (field) – Disaster Tested Manager – Insurer / Broker / Consultant  Model Approach

7. Page 7 Recording of this session via any media type is strictly prohibited. Preparation Preparation of Emergency / Catastrophe Plan  Local Customization  Quality Control Procedures – Approval – Audit  Use of Technology  Operating Units Versus Corporate Headquarters

8. Page 8 Recording of this session via any media type is strictly prohibited. Risk Management Process Identify Types of Catastrophic Situations That Could Affect Your Operations Casualties (Fire, Natural Disaster) Use your own engineering reports / loss history EQ / Flood / Windstorm analysis by insurer / broker / consultant Cyber Attacks

9. Page 9 Recording of this session via any media type is strictly prohibited. Risk Management Process Terrorism / Extortion Third Party Criminal Acts Interdependencies (or where in the food chain are you?) –Have you named all of your key suppliers and/or recipients? –ID secondary suppliers and/or recipients

10. Page 10 Recording of this session via any media type is strictly prohibited. Risk Management Process Attempt to Measure Impact to Company's Assets and/or Earnings  Liability (Life Safety)  Business Impact (maintain/improve market share)  Goodwill / Image  Lowered Productivity –(e.g., Employee Downtime)  Value of Key Employees

11. Page 11 Recording of this session via any media type is strictly prohibited. Critical Success Factors Quick Response Team Resources Headquarters Operations Share Plan With Your Underwriters o Align coverage’s and expectations Manage Corporate expectations

12. Page 12 Recording of this session via any media type is strictly prohibited. Preparation Key Items To Be Included In Plan Specialty Emergency Contractors Communications Utilities Security Transportation Engineering Services Hot site for IT General Contractors Roofers Plumber / HVAC Sprinkler Contractors Glass / Glazers Cyber Resources Trauma Counseling

13. Page 13 Recording of this session via any media type is strictly prohibited.

14. Page 14 Recording of this session via any media type is strictly prohibited.

15. Page 15 Recording of this session via any media type is strictly prohibited.

16. Page 16 Recording of this session via any media type is strictly prohibited. Pre-event Hours Establish Home Office Responsibilities Establish Primary and Alternate Field Headquarters Food Clothing Staff Phone Book Cash Security (Police/National Guard) Headquarters

17. Page 17 Recording of this session via any media type is strictly prohibited. Pre-Event Hours Conduct Pre-Event Conference Calls When Possible (Hurricane and Flood) Establish Pre-Event Checklist to Include: - Food- Materials/Supplies - Clothing- Contractors Committed - Accounting Cost Codes

18. Page 18 Recording of this session via any media type is strictly prohibited. Summary Facilitate – Bring Resources Together Develop Model Plan Establish Quality Control Procedures Responsibility / Authority – Use Technology if Possible Distribute Audit

19. Page 19 Recording of this session via any media type is strictly prohibited. Post-Event Actions Implement Emergency / Catastrophe Plan Quick Response Team Establish Objectives Media / Public Relations Psychological Support Services for Employees Coordination with Insurers

20. Page 20 Recording of this session via any media type is strictly prohibited. The Ten Commandments of Disaster Planning 1.Preparation, Preparation, Preparation leads to “360 degree credibility” 2.Follow the Risk Management Process 3.Make sure that you have coverage and no surprises (Policy Workshops) 4.The Risk Manager should be a facilitator and identify the best resources inside and outside of the company 5.There must be Quality Control which includes: o Practice o Required Updates o Audits 6.Where you are exposed to Natural Catastrophes, pre-commitment of key contractors and resources is critical. 7.Establish a Quick Response Team is critical 8.Establish Home Office responsibilities 9.Conduct Pre-event Conference Calls when possible (commencing 7 days out on named storms) 10.Share the plan with your underwriters

21. Page 21 Recording of this session via any media type is strictly prohibited. Managing Large Losses The Story

22. Page 22 Recording of this session via any media type is strictly prohibited. Managing Large Losses The Challenge Negotiating Large Losses –Technical Expertise –Negotiation Skills –Really Understand the Provisions of Your Policy

23. Page 23 Recording of this session via any media type is strictly prohibited. Managing Large Losses I. Determine Management Objectives A. Meet with Management 1.Identify Issues Specific to Location II.Designate single person in charge of claim A.Brokers will be critical to providing initial notice and updating carriers on a regular basis B. Calendar deadline for filing Proof of Loss

24. Page 24 Recording of this session via any media type is strictly prohibited. Managing Large Losses III. Meet with Company Disaster Recovery Team A.Confirm Objectives B. Agree on Roles C.Develop Detailed Scope of Loss on First Day CRITICAL – Establish internal cost code to track all time and expenses D.Team Should Meet Once or Twice a Day and Revise Scope at End of Each Day

25. Page 25 Recording of this session via any media type is strictly prohibited. Managing Large Losses IV. Timely and Strategic Communication A.Internal – key to have main point of contact to maintain control (may want to have under the direction of in-house counsel to establish privilege) B. External – should coordinate with corporate communications department or specified person Caution: every analysis, email, memo or press release eventually may be viewed in litigation context. Do not speculate in writing and think, “would I enjoy being cross examined over this?”

26. Page 26 Recording of this session via any media type is strictly prohibited. Managing Large Losses V.Involvement of Insurer - The Objective is to Make Insurer a Member of Your Team A. Communicate Story of the Loss B. Create Win - Win Relationship C. Identify Your Business Objectiveand Strategic Issues – Realistic Claims Philosophy 1. Establish early on that you are carefully and fully preparing a fair, credible claim for alllosses to which you are entitled under relevant policies

27. Page 27 Recording of this session via any media type is strictly prohibited. Managing Large Losses 2. Do not include obviously non-covered claims as it will impair your credibility D. Establish a Core Team as soon as possible 1. Risk Management, Legal, Business Unit Reps, Development, Construction, Operations 2. Outside Consultants: claims preparation experts, brokers, attorneys, technical experts E. Use Insurer as Resource 1. Equipment, specialty contractors, materials, etc.

28. Page 28 Recording of this session via any media type is strictly prohibited. Managing Large Losses F. Involve Insurer in Business Versus Insurance Meetings G. Discuss Advances and Payment Requests H. DOCUMENT ALL MEETINGS! –Written minutes at all meetings with emphasis on who, what, and when –Have specific action items and review at next meeting

29. Page 29 Recording of this session via any media type is strictly prohibited. Managing Large Losses VI. Business Interruption Loss A. Promptly Set up Meeting with Insurer, its Consultants and Your Management and Accounting Personnel B. Define How Income/Revenue is Earned and Is Impacted at The Facility C. Agree on Information and Method of Documenting Loss

30. Page 30 Recording of this session via any media type is strictly prohibited. Managing Large Losses VI. Business Interruption Loss (cont.) D. Establish Time Frame E. Attempt to Identify Issues Prior to Final Negotiations F. DOCUMENT ALL MEETINGS!

31. Page 31 Recording of this session via any media type is strictly prohibited. Managing Large Losses VII.Meet With Underwriters – Review Loss/Lessons form Loss in detailed, principled manner to ID possible policy changes

32. Page 32 Recording of this session via any media type is strictly prohibited. Managing Large Losses Conclusion: A Time To Shine In The Midst Of Darkness

33. Page 33 Recording of this session via any media type is strictly prohibited. Ten Commandments of Managing Large Losses 1.Provide notice to all relevant carriers 2.Determine management objectives and identify issues specific to the location 3.Communicate with Disaster Recovery Team to: a. Confirm objectives b. Agree upon roles 4.Develop detailed scope of loss by the end of the first day and update daily at scheduled team meetings 5.Utilize a Win-Win strategy 6.Include insurance adjuster in business meetings versus insurance meetings

34. Page 34 Recording of this session via any media type is strictly prohibited. Ten Commandments of Managing Large Losses 7. Discuss Advances and Payment requests early in the process 8. Document all meetings a. Who attended b. Actions agreed upon and to be accomplished by whom 9.Require Insurer’s consultant be identified and on site as soon as possible 10.Business Interruption Loss – have an immediate meeting with Insurer’s “Accounting Firm” and your financial personnel and management to educate them as to how you earn your revenue in the context of the policy and agree upon information required to document the loss (document the meeting)

35. Page 35 Recording of this session via any media type is strictly prohibited. Contact Information Michael Horvath, Senior Vice President, Risk Management mhorvath@simon.com 317-263-7164 mhorvath@simon.com Steven Sachs, EVP, Director of Real Estate and Hotel Practice, Willis steve.saachs@willis.com steve.saachs@willis.com 410-584-8935 John R. Cadarette, Jr., Managing Director, The Claro Group, LLC jcadarette@theclarogroup.com 310-581-6278 jcadarette@theclarogroup.com D.J. Corrigan, VP and Senior Executive General Adjuster, Cunningham Lindsey dcorrigan@cl-na.com 312-454-9200 X3911dcorrigan@cl-na.com