Risk Management Tips After Typhoon Hato and Pakhar
Typhoon Hato and Pakhar have caused heavy flooding, flight cancellations, chaos in Hong Kong, Macau and Zhuhai. In the event that your organization has suffered damage as a result of Typhoon Hato and Pakhar (or suffers damage pursuant to any future Typhoon), , we are pleased to outline below a number of practical steps to assist you with claims and risk management.
BEFORE SUBMITTING YOUR CLAIM TO YOUR INSURERS
- Where possible, take pictures of the accident scene and damaged properties, if any.
- Report to the police where necessary.
- Record details of the incident, such as date and time of occurrence, cause of loss, involved staff, witnesses, etc.
- Do not discuss the cause of an incident or who should be responsible for the incident with third parties without your insurer’s approval.
- Do not undertake remedial works to damaged properties, whether belonging to you or a third party, without your insurer’s approval.
- Co-operate with your insurers and their appointed representatives such as loss adjusters.
- If you are in any doubt or require advice on whether an incident needs to be reported to your insurer, please call Marsh.
- Always read your insurance policies and be aware of the terms, conditions and exceptions contained.
- It is your duty to act as uninsured i.e. you must take reasonable steps to prevent any loss before it takes place and to minimize any loss which has taken place.
- It is your duty to disclose all material facts to your insurers. Failure to disclose could prejudice your right for indemnity.
- Do not admit liability or make any offer, proposal, compromise or settlement without the Insurers consent to avoid prejudicing your rights and remedies under the policy.
- If you are in any doubt as to how you should proceed you should immediately consult the office of Marsh, for advice.
RISK MANAGEMENT TIPS
- Safety management program and preventive measures - ensure safety of employees, guests, customers, tenants, and service contractors. Areas of focus are protection of glass panels, canopies, gondola systems, scaffolding, temporary structures, outdoor architectural features, outdoor furniture, trees, etc
- Emergency Response Plan (ERP) for natural catastrophes - with a focus on tropical cyclones, windstorms, and heavy rains (flooding), evaluate effectiveness of reporting protocols, escalation procedures, evidence gathering, preliminary site situation assessment, temporary site protection, evacuation procedures, root cause analysis, and emergency preparedness of relevant personnel (e.g. training program, competency, drills, etc)
- Business Continuity Plan (BCP) - ensure establishment of organizational structure, roles and responsibilities to effectively implement risk prevention/mitigation measures to ensure continuation of site operations in an event of major disruption of utilities, e.g. water supply, power supply, gas supply, and telecommunications
- Disaster Recovery Plan (DRP) - assess effectiveness of repairs, implementation of action plans, and priority setting
- Loss prevention – based on past experience and on-going risk assessments, identify black spots with a higher frequency of loss/damage and update safety procedures, ERP, BCP and DRP accordingly.