By Bob O'Brien ,
Senior Property Claims Officer of Marsh US Property Claims Practice
Hurricane Ida’s impact on property, businesses, and people from the Gulf Coast through the northeast has unfortunately resulted in numerous deaths, significant property damage, and service interruption to over a million power and electricity customers. Many companies trying to restart their operations are addressing direct property damage and power issues, and also face supply chain problems, such as obtaining feedstock or other raw materials and supplies.
These types of supply chain issues can pose significant recovery challenges, whether your company is in the immediate area where damage occurred or further afield. As a first step, you should assess if your operations have been impacted and to what extent. You might be affected by damage or interruption to a direct supplier; to a second, third, or other tier supplier within their supply chain; or to logistics services providers, such as shippers and ports. In addition, you should investigate if damage to your customers will impact their ability to receive your goods or services, which could result in a contingent business interruption claim.
To reduce the potential for financial impacts on your business and prepare for a possible contingent time element claim, you should:
A careful review of your insurance policies can help determine if a contingent time element claim could be filed. This includes understanding:
Contingent time element claims can be among the more complex ones to file and manage. Having a good understanding of your potential loss and coverage, established communication protocols with your broker and insurer’s adjustment teams, and the right claims advocacy team representing you are important in helping your claim process to move forward smoothly and returning to normal operations.