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Claims process checklist

Recovering from the effects of significant water damage

Download the checklist

The unprecedented levels of rainfall in the Middle East in recent days has been devastating, with widespread flooding being experienced resulting in the loss of life and severe damage to countless homes and businesses.

As the region continues to cope with the overwhelming impacts of this significant climate related event, companies are also assessing business recovery and restoration options. Given the extent of the business disruption being faced, actions taken at an early stage can be essential to protecting a company’s finances, operations, and overall success.

Claims Process Checklist

Download the checklist

We recommend you take the following steps

Business interruption – introductory tips:

  1. Keep a diary of how, on a daily basis, the damage has impacted the ‘normal’ operations of the business – note whats changed, how you have had to do things differently
  2. Set up cost codes / purchase orders to track the repairs, reinstatement, debris removal, increased and additional costs
  3. Make sure you explain why a cost was incurred either on the purchase order, or on the invoice, how it relates to the damage or the impact of the damaged assets upon the normal operations of the business
  4. Track lost sales – Keep emails, take down notes
  5. Consider whether mitigation steps can be taken to reduce the severity of the damage

Material or property damage – process overview:

  1. Identify the damaged insured assets
  2. Make safe – access, electrical, gas, water, contamination
  3. Dry out / strip out / mould treatment
  4. Assess the damage – Loss Adjuster / Loss Adjuster’s experts – engineers, hygienists etc.
  5. Agreement with Loss Adjuster insurer on extent of damage / indemnity – coverage response
  6. Agree scope for repair / reinstatement
  7. Agree contractor / quote – with Loss Adjuster
  8. Appointment of contractor
  9. Management of works sign off
  10. Claim submission – payment

Loss Adjuster and their role

Loss Adjusters and other insurer appointed experts act for insurers to assist with quantifying the size of the loss and managing the claim.

Seek the loss adjuster’s agreement prior to material costs being incurred to mitigate the loss and on key decisions, such as reinstatement methods, mitigation expenses, time lines etc. Ensuring loss adjusters understand and agree on the circumstances and uncertainties can provide greater clarity and may reduce the possibility of disagreement as to whether the cover will respond.

As they become apparent, communicate any problems with any suppliers, timetables or work schedules to the loss adjuster immediately, and include them in the problem solving process.

Documentation is critical, here are our top tips:

Document as you go.

Organise the systematic collection of information as it becomes available – searching through historic files at the end of the claim is harder and important elements may be missed.

Photograph any damage.

Collect reports, drawings, photographs as appropriate to adequately establish the nature and extent of all loss and damage sustained. Fully document (video or “still” photograph) the damaged property, plant and equipment.

Take stock.

Conduct a detailed stock take or reconciliation of plant and equipment to ascertain damaged assets.

Do not remove any damaged property.

Do not remove any damaged property, plant and equipment until viewed in situ by Loss Adjuster , unless necessary (i.e. due to safety, to reduce further damage, to recover). If the property, plant and equipment needs to be removed place in temporary storage, do not throw out.

Document best and worst case loss.

Document best and worst case loss and cost estimates as soon as feasible so they can be provided to your insurer to assist with your claim. Make sure you consider the long-term impacts.

Advice and quotes should be provided in writing.

Retain damaged assets to assess the extent of the damage (repair or reinstatement) and to obtain a quotation for the recommended response. Consider what steps can be taken immediately to either stabilise or temporarily repair assets.

Document conversations.

Document all conclusions of discussions and action points arising from each meeting, leaving no room for misunderstandings or incorrect assumptions.

Support all costs with appropriate documentation.

Support all costs with appropriate documentation such as purchase orders, work orders, invoices, time sheets, service contacts and material requisitions. Justify business continuity decisions (i.e. alternative suppliers or relocation of offices) with all relevant documentation. This might include emails, meeting minutes etc.

Track time spent on claims.

Ensure that all the time spent by employees on claim related activity is properly recorded (including details of the work carried out), this has particular relevance for overtime, temporary employees and casuals.

Record all lost sales opportunities.

Record all lost sales opportunities in writing immediately. The ability to prove a reduction in turnover may rely on your ability to identify sales impact.

For General Claims Enquiries

Abraham Korah

Abraham Korah

Vice President, Claims Advisory

  • United Arab Emirates

For Claim Preparation

Nolan Naidoo

Nolan Naidoo

Senior Vice President, Claims Services

  • United Arab Emirates

Mayank Bhujwala

Mayank Bhujwala

Senior Vice President & Practice Leader, Claims Solutions

  • United Arab Emirates