Majority of insureds will face a loss at some point. Knowing how to effectively handle a loss will allow your business to keep operating as usual during or after damage. Regularly inspecting your property and training employees in managing disasters are key.
Preparing for a loss
Dealing with any loss can be difficult, but preparation before a loss occurs will avoid frustration and speed up the claims process. Here are four ways to prepare:
- Create a disaster preparedness plan with contacts and resources necessary to ensure the continued safety of your residents and staff while allowing for the most efficient restoration of your operations. It is critical to always maintain an adequate supply of medication and current resident transfer agreements.
- Assign people specific roles in the event of damage will make the overall process much smoother.
- Appoint key contacts and choose people from departments such as accounting and maintenance to gather data necessary to prepare a proof of loss.
- Understand what your policy covers and go through different scenarios will help answer questions about potential property losses when they arise. It’s best to know beforehand how your coverage will affect your business’ recovery.
Handling the aftermath of a loss
The first hours after a loss are the most crucial as these decisions can affect general operations. As soon as possible
- Inspect and document damages
- Take the necessary steps to protect and preserve property from further damage
- Set up special accounts to designate loss related expenses to track total spending. This will help you with the claims process later.
Property policies will repair and replace damaged property such as building, for losses resulting from a covered peril. Time element insurance is so you’re in the same financial position as if the loss didn’t happen. Time element coverage includes business interruption resulting from a physical loss by a covered peril where the loss results in a drop in sales or operations stopping. It’s important to partner with a broker that will assist you in reporting, coordinating and advocating for you during the loss and claims process.
For more information on property loss, contact a Marsh McLennan Agency (MMA) advisor.
