When A Loss Occurs

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It is important to have a written procedure to follow in the event of a loss. This minimizes the potential for unforeseen consequences. Make sure your employees understand the procedures to follow in the event of a loss. The following guideline is a good place to start!

In the event of a property loss:

• Notify your broker and report:
• Date and time of loss
• Cause of loss
• Property location
• Property involved
• Loss estimate
• Persons to contact and telephone numbers

You will also need to:

• Take immediate necessary steps to protect and preserve property
• Separate damaged from undamaged goods and prepare an inventory listing all items.  Meanwhile your broker will begin the claims handling process. Meet with the adjuster. Verify the damage, and if possible, agree on scope of repair and/or rebuilding figures.
• Obtain debris removal bids
• Prepare a statement of loss using costs based on like kind and quality
• Submit any statement of loss to your broker for review
• Make sure you cooperate with the adjusters, who are the insurers’ representatives.  Be prepared to answer any questions regarding the facts about the original of the loss.
• As the loss adjustment proceeds, consult with your broker for advice about preparing your claim.  Your broker should also assist you in your negotiations with an adjuster.
• Keep separate work sheets and files on all details; insist on detailed invoices for all loss expenses.
• Ask permission to begin salvage efforts immediately.  The adjuster will then inform you of what the companies’ position will be.
• In case of vandalism or theft, notify the police promptly.
• Don’t begin to remove damaged property until the adjuster has verified and examined it, except to protect the property from further damaged.  If safety or production necessitates immediate repair or removal, take pictures and document the damage as well as possible.
• Don’t give away the damaged property, it may belong to the insuers.

In the event of a Workers Compensation claim:

• Complete and submit the “Employer’s first report.”
• Arrange for medical attention for the injured employee.
• Secure tools or equipment that may have been involved in the accident.
• Obtain names of witness to the accident including company worker(s) or outsiders who may have been present.
• Make sure you don’t discuss the accident with anyone except your insurance broker, your attorney, representatives of your insurance carrier or your claims service contractor.

In the Event of a Product Liability claim:

• Contact your Broker immediately in writing, and over the phone, and let them know that a claim has been filed against your company.
• Tell your broker how the claim was presented, i.e., by letter, phone, by the claimant or by an attorney, etc.
• Find out exactly what product is involved in the claim; identify its serial number and its precise current location.
• Gather all the information you have on the history of the product to use as documentation in case of a suit.
• Make sure you don’t discuss the accident with anyone except your broker, your attorney, and the representative of your insurance carrier or your claims service contractor.
• Do not admit liability to anyone, or offer your opinion about liability to anyone.

For claims involving General Liability or other Casualty claims, such as Automobile:

• Contact your broker in writing and over the phone reporting the incident or claim.
• Get claimant’s name, address, and telephone number.  If there are any witnesses make sure to get their names, addresses, and telephone numbers.
• If an ambulance was called, write down the name of the Ambulance Company and the hospital and be prepared to describe how the accident occurred.
• Make sure you don’t discuss the accident with anyone except your broker, your attorney, and the representatives of your insurance carrier or your claims service contractor.
• Do not admit liability to anyone, or offer your opinion on liability.

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Diversified Risk Insurance Brokers phone: 510/547-3203 fax: 510/547-5648 5900 Christie Ave License # 0529776 Emeryville, California 94608 copyright © 2001