Expecting the Unexpected Part of the Unexpected



Carefully control access to the premises.

Be sure to document activities on a log and maintain accurate records. Keep a separate “loss account” for loss-related expenses.

After assessing the potential scope of damage, set up a postloss business plan to protect your market. (It’s surprising how fast your competitors will try to secure a better position!)

Notify your customers, banks and suppliers of the loss, and prepare a public relations program to protect your market position. You’ll need to let everyone know you’re still around!

Integrate your claims program with other business operations, including all temporary repair activities. Remember that property damage, business interruption and the business recovery plan are all tied together.

Too many managers expect the insurance company to tell them what to do to save their business. Make decisions that are best for the survival of your business. This point cannot be emphasized enough. You must make the prudent business decisions necessary for your recovery.

The insurance company is responsible for producing the financial solutions provided under your policy; it is not responsible for running your company for you. While the insurance settlement is very important, it could be many months down the road.

Explore extra expense coverage with your broker. It can provide reimbursement for many business recovery expenses not normally allowed under standard business interruption coverage. Extra expense coverage can provide a program to help save a business by allowing it to make critical expenditures outside the usual areas of indemnity.

Be careful when using existing raw material inventories to make up production. Its full effect may not be felt until after the claim’s indemnity period.

Be sure to track the increased cost of operations during a postloss recovery period. It will eventually affect the “bottom line.” Know the players. Understand what staff adjusters, independent adjusters and their forensic accountants are. They will be working for your insurance company—and you can be sure they will understand their roles.