The adjuster’s casebook What does this look like in practice - some cases to highlight the claims issues but from a perspective of commercial claims

What are we dealing with when a flood occurs? EMPLOYEES SUPPLIERS CUSTOMERS PRODUCTS

What are we dealing with when a flood occurs? EMPLOYEES - Has their home been affected? - Will they need time-off work? - Can they get to work? SUPPLIERS - Any damage to stock/WIP? - Still able to produce? - Can they deliver? CUSTOMERS - Any damage to their premises or stock - Are they able to continue to produce? - Can they receive deliveries? PRODUCTS - Will their demand for our products rise or fall due to the incident? Some general principles

Crisis management Further investigation of damage & cause Site recovery plans - temporary - - long term Business information gathering Communication planning Supply chain management Key decisions are site based

Case study - the hotels City centre tourist hotel evacuated and heavily damaged by water - 6 months of repairs Hotel in west of city on higher ground unable to trade whilst isolated by flood water –Claim for loss of revenue as access prevented by flood waters –Claim for “branded” stock disposed of for major local event now cancelled

Hotel - Flooded - Damage Before IncidentAfter Incident

Hotel - Cut Off - No Damage

Case study - DIY Out of town shopping centre, loss at DIY shop Claim for potential loss of increased revenue for dehumidifier hire Dehumidifiers to be supplied from central store in South England Claim for stock loss that includes many sale items that could now be sold at full price

DIY Out of town store Before IncidentAfter Incident

DIY Out of town store Before IncidentAfter Incident

Gross Profit ………. reduction in GP as a consequence of the Incident …….. Incident ……… loss, destruction or damage to property in use by the Insured at the premises ……… Trend ……. Trend in the business both before and after the date of the incident which but for the incident would have …….

Summary of case studies Lack of response - pre-rehearse key issues This is not an ordinary scenario Are we comfortable with the different answers different “damage” produces? Consider businesses in surrounding areas “But for” the damage Day one, no loss