There are two types of organizations: those that have been through a loss and those that have not been through a loss yet. No matter how much preparation is taken, if a business is operating long enough, there will be a time when something goes wrong. Dealing with the aftermath and the insurance claim process can be overwhelming, but it does not need to be a defining moment for a business. There are some actions that can be taken post-loss that will increase the chance of a successful and speedy recovery.
Most importantly, the top priority after any loss is to ensure that both people and property are protected and safe from further harm. Once that has been done, most policyholders tend to reach out to their broker as their first point of contact. This is beneficial because the broker can help to initiate the formal claims process with the insurance carrier by giving them notice that a loss or a potential loss has occurred. As part of this process, the carrier will typically assign a unique claim number and a claims handler to oversee the claims process internally.
Once these areas are addressed, the most important thing that an Insured can do after a loss is to begin the documentation process. It is never too early to start and there are advantages to beginning to gather and collect data as soon as possible. Here are a few simply ways to do so:
1. Establish a Loss Accounting Code
As soon as possible, policyholders should create a new accounting code in their general ledger or accounting system. This account will become the single place that all expenses related to or possibly related to the loss should be recorded. Having one central repository of expenses will make it easier to capture all the impacts of the loss later on when the claim is being prepared and presented. If there is an expense that is questionable, policyholders should err on the side of including this cost in the newly established loss account. Even if an expense may not ultimately be part of the claim, it is easier to remove later than to go back and uncover costs that were not accurately recorded early on after the loss.
2. Take Pictures & Video
Taking pictures and video of the loss site is an important part of the documentation process. These images and videos provide a snapshot in time and help to preserve the scene as it was immediately following the loss. This can help to confirm that repair work performed was indeed done to address damages caused by the loss. A video tour of the site provides even more detail as the damages can be narrated while the filming is taking place. In recent years, the use of 3D cameras has become more common and is another tool that Insureds can make use of to assist them with the claim process. This new technology creates a “digital twin” of the loss site that can be accessed at any point afterwards and a virtual tour of the damages can be shared with anyone. Having visual evidence of the damages following a loss can be a powerful tool to assist with the claim process.
3. Create Daily Reports
The first few days and weeks following a loss can be critical. It’s during these times that the initial clean up, debris removal, remediation and other emergency services are provided. Having a daily log of the activities that take place can help to establish a detailed timeline following a loss that will help to align the costs with the activities that have taken place. These reports can also help to confirm that certain vendors were onsite on a given day and can support expenses that are included as part of the claim.
Most insurance claims can take at least three to six months or longer to be fully resolved. Months after a loss, it’s common for the parties involved to not recall every single detail of what took place in the immediate aftermath. By beginning the documentation process as early as possible, Insureds will give themselves a greater chance at successfully presenting a claim and expediting the process while maximizing their recovery. At RCG, we are hired by organizations around the globe after an event has taken place to guide them through the insurance recovery process.
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