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.
We recommend you take the following steps
Business interruption – introductory tips:
- 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
- Set up cost codes / purchase orders to track the repairs, reinstatement, debris removal, increased and additional costs
- 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
- Track lost sales – Keep emails, take down notes
- Consider whether mitigation steps can be taken to reduce the severity of the damage
Material or property damage – process overview:
- Identify the damaged insured assets
- Make safe – access, electrical, gas, water, contamination
- Dry out / strip out / mould treatment
- Assess the damage – Loss Adjuster / Loss Adjuster’s experts – engineers, hygienists etc.
- Agreement with Loss Adjuster insurer on extent of damage / indemnity – coverage response
- Agree scope for repair / reinstatement
- Agree contractor / quote – with Loss Adjuster
- Appointment of contractor
- Management of works sign off
- 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.
