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Expect the Unexpected As events around the world over the last year have shown, the unexpected can and does happen. This year has already seen the highest level of economic losses ever from natural catastrophes ($265 billion in the first half of 2011 compared to $220 billion for the whole of 2005, which held the previous record ) in addition to plenty of manmade losses too. This guide focuses on the following:
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A claims preparation clause will extend a policy to provide insurance cover for costs incurred in the preparation and submission of a major claim. Major or complex claims e.g. business interruption claims, always involve detailed forensic investigation and analysis by insurers who appoint loss adjusters, engineers, accountants and on occasion, lawyers, to act on their behalf. To conduct such investigations, extensive information requirements can be made of an insured who must, of course, comply with policy conditions in relation to notifying and substantiating any claim submission.
The appointment of an independent claims expert provides the insured with forensic support and advice on claims submission and strategy, but not the delivery and negotiation activities carried out by the broker. In essence the insured's own expert helping them to expedite their claim, as opposed to the loss adjuster who is appointed to act for insurers. Appointing an expert who understands the working practices and information reqiurements of the insurance market, and who can apply this knowledge on behalf of the insured to deliver an effective and expedited claims settlement process, is therefore of obvious potential value.
The use of claims preparation clauses is becoming more widespread and we would strongly advise you raise the issue with your insurers to make sure you have one included in your policies.
