Loss adjusters - Get to know them before you need them, insurance buyers advised
Loss adjusters and risk managers have not always enjoyed the easiest of relationships. However, says Paul McLarnon of Cunningham Linsey, their job is to solve your problems. It is well worth getting to know your adjuster before anything goes wrong.
No one really knows your company quite as well as you do, which isn’t exactly surprising. When facing a major incident and insurers want to send out a loss adjuster to help you get your business back on its feet, any deep-rooted scepticism could be forgiven. But times are changing and you might be surprised at just how sector-savvy our major loss adjusters are in today’s highly competitive market.
Organising the reinstatement of a factory, office or warehouse building is a task in itself, and this is something that any insurance professional, experienced in handling large losses, should not find particularly taxing. The challenge in every case is to ‘hit the ground running’ - with a good understanding of that company’s particular line of business and with experience on how the impact on its future trading can be kept to the minimum.
For example, a devastating fire at a waste management and recycling plant might at first seem a relatively straightforward claim. However, more often than not, there are many tonnes of sodden waste that can no longer be recycled or there might be noxious materials amongst the debris that requires the involvement of the Environment Agency, local Council and/or the Health & Safety Executive. Re-directing the daily deliveries in the short term may not be an option and so temporary recycling facilities need to be up and running within hours of the fire. Understanding the business, appreciating the issues and making quick decisions is vital to reducing costs and getting the plant operational, however makeshift, as soon as possible.
You also need someone who is on your side and can think laterally. In the telecoms sector downtime is inconceivable and when a fire knocks out an entire mobile network, the client wants immediate solutions. Repairs to the damaged electronic nerve centre might be entirely possible, but in this fast moving market sector it makes more sense to invest in completely new equipment. To strike a balance, the adjuster might have to look at things differently - perhaps interpreting the insurance policy to fit the claim - in order to ensure that the business continues to run smoothly and still within the general parameters of the insurance policy.
In the water sector, a major mains leak can lead to a huge emotional response from the general public. Many homes and businesses could have suffered flooding and these people want immediate help and answers. Swift, pragmatic solutions have to be offered with empathy and understanding and expectations carefully managed. In this particular instance, the adjuster needs to go the extra mile to make sure that the water company’s reputation is the first and foremost consideration.
In any market sector - manufacturing, engineering, agricultural, water, waste, telecoms or pharmaceuticals, and particularly if the industry is highly diverse – it is worthwhile ensuring that you have pre-appointed a professional loss adjuster, with specialist sector skills and knowledge, to personally assist you in the event of a major insurance claim. Building such relationships beforehand allows you to talk through the important and unique features of your business and the adjuster can gain a better understanding of how you like to work. If and when the worst happens, this will make the journey back into normal trading a great deal easier, smoother and with the minimum amount of stress.
Paul Mclarnon is Corporate Development Director, Cunningham Lindsey UK
