What to do in the event of a major loss

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What to do in the event of a major loss

• Greg McCosker
• State Manager
• Freemans
• Claims Insurance Services

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Overview.

• What is a Loss Adjuster?
• When do you need a Loss Adjuster?
• The role of a Loss Adjuster
• The role of the Insurance Officer
• Case Study

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What is a Loss Adjuster?

• Qualities
• Courteous
• Diplomatic
• Shrewd
• Persuasive
• Equable temper
• Embodiment of virtue
• Knowledge of sin evil

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What is a Loss Adjuster.

• Must have an understanding of
• Insurance, Electricity, Chemistry
• Mechanics,Physics, Book keeping
• Banking, Merchandising
• Selling, shipping, contracting
• Law, medicine
• Real estate, horse trading
• Human Nature

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What is a Loss Adjuster

• Must be
• A mind reader
• A hypnotist
• An athlete
• Must
• Know the current price of everything from a shoe
  string to a sky scraper
• Know all, see all tell nothing

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What is a Loss Adjuster..

• Must satisfy
• The claims examiner the claims department
• The general agent, the local agent the broker
• The solicitors, the insured the claimant
• The underwriter the reinsurer

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When do you need a Loss Adjuster?
When do you need a Loss Adjuster? Fire
When do you need a Loss Adjuster?

• Fire

Flood
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When do you need a Loss Adjuster?
When do you need a Loss Adjuster? Cyclone
When do you need a Loss Adjuster?

• Cyclone

Flood
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When do you need a Loss Adjuster?
When do you need a Loss Adjuster? Storm
When do you need a Loss Adjuster?

• Storm

Flood
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When do you need a Loss Adjuster?
When do you need a Loss Adjuster? Flood

• Flood

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Can it happen to me?

• Global Natural Disasters
• 4 hurricanes in 6 weeks hit USA Caribbean in
  2004 Over 2000 deaths Wind speeds 184 264
  kph Damage in excess of US20B
• 1st ever recorded hurricane hits Brazil 2004
• 10 typhoons hit Japan 2004
• Asian Tsunami 2004
• European Floods 2004
• Earthquakes Japan, New Zealand etc

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Can it happen to me..

• Increase in Australian natural disasters
• Cyclone Ingrid 2005
• Brisbane hail storm 19 May 2005
• Melbourne storms 2004 2005
• Bunbury storms May 2005
• Port Lincoln Bush Fires 2005
• Sydney Bushfires 2003
• Victorian Bushfires 2003

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Can it happen to me?

• Mt Stromlo Observatory, ANU
• St Johns College, UQ

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Role of the Loss Adjuster

• Services
• Property Loss
• Motor
• Legal Liability public, products, professional
  indemnity
• Technical engineering, construction, business
  interruption, machinery breakdown, financial
• Litigation support HR, fraud, workers
  compensation
• Recovery

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Role of the Loss Adjuster..

• Who is the client?
• Insured
• Self insured
• Insurer
• Re-insurer

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Role of the Loss Adjuster..

• Ascertain specific details of the loss i.e how,
  when, where why
• Relate circumstances to policy cover
• Assess damage quantum
• Engage appropriate specialists/consultants
• Manage reinstatement process

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Role of the Loss Adjuster..

• Authorise settlement funds
• Investigate cause recovery opportunities
• Consider salvage issues
• Provide risk management advice

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Role of Insurance Officer

• Notify incident as soon as possible
• Secure loss site
• Mitigate loss
• Arrange site access
• Complete claim form/notice of incident

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Role of Insurance Officer.

• Ensure availability of relevant staff
• Consider the need to gain legal privilege
• Provide necessary documentation e.g. Proof of
  ownership Legal documents e.g. lease, warranty,
  contracts Plans Records e.g. alarm printouts,
  incident reports

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Role of Insurance Officer.

• Consider the privacy of staff, interested
  parties etc
• Consider environmental impact
• Consider workplace health safety issues
• Executing contracts for rectification works
• Authorise building/repairs
• Arrange payment of excess/deductible
• Inform all relevant agencies e.g. heritage
  council, EPA etc

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Case Study

• Fire at St Johns College
• University of Queensland
• Good Friday
• 25 March 2005

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Case Study .

• 2pm Good Friday, 25 March, 2005
• Loss Adjuster on site 5pm, Police Fire
  personnel still on site
• College facilities incorporating 7 residential
  buildings, accommodating 300 students
• Damaged building accommodated 46 first year
  students some still in residence, others home
  for Easter
• Await handover of scene from Police / Fire
  Service

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Case Study .

• Secure site pending decision re need for
  independent forensic investigation
• Control access to site
• Initiate W P H S audit to ensure building safe
  and safe to enter
• Arrange environmental audit re presence of
  asbestos, soot deposits on adjacent buildings
  air pollution, run off of polluted water etc

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Case Study .

• Investigate cause and recovery prospects
• Police
• Criminal Investigation Branch
• Police Scientific
• Fire Investigation Unit
• Electrical Safety Office
• Independent Forensic consultant

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Case Study .

• Mitigation of loss building business
  interruption
• Make safe building
• Temporary repairs / propping
• Arrange temporary accommodation
• Temporary services, phone, power, water, sewerage
• Constructive demolition

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Case Study .

• Engage consultants to prepare scope of works and
  specifications
• Manage tender of repair works
• Confirm status of building upgrade work in
  progress
• Handed over / practical completion
• Who insures the upgrade works
• Insurance cover for residents

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Case Study .

• Documentation
• Residency agreements with students
• Building contract for upgrade works
• Insurance program for work in progress
• Certificate of Completion for building work
• Schedule of Insurance to identify extent of cover
• Original building plans

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Case Study .

• Reinstatement
• Evaluate tenders select repairer
• Execute repair contract
• Manage variations
• Authorise progress payments
• Practical completion
• Certification

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Major Loss Insurance Claim.

• Thank you for your attention.
• QUESTIONS