Superstorm Sandy Insurance Coverage & Claims

Transcription

1 Superstorm Sandy Insurance Coverage & Claims 1

2 About Advisen: Advisen Ltd. is a privately-owned, independent and unbiased provider of news, data and risk analytics to the commercial insurance industry. Advisen s mission is to deliver productivity and insight to insurance professionals. Advisen brings greater success though technology and data, revolutionizing the way the commercial insurance industry functions. Our customers leverage the Advisen platform, adding power to their proprietary ability and bringing value to their clients. Please locate us on: 2

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4 Superstorm Sandy Insurance Coverage & Claims Copy of these slides Recording of today s webinar 4

5 Today s Moderator David Bradford- President, Research & Editorial Group, Advisen Ltd.

6 Today s Panelists Finley Harckham, Shareholder, Anderson Kill & Olick P.C. Ronald J. Papa, President, National Fire Adjusters Neal Novak, Regional Manager, Alex N. Sill Company Loss Consultants and Appraisers Marvin Milton, Senior Vice President, Swerling Milton Winnick Public Insurance Adjusters

7 Today s Panelists Finley Harckham, Shareholder, Anderson Kill & Olick P.C. Finley Harckham is a senior litigation shareholder in the New York office of Anderson Kill and serves on the firm's Executive Committee. Mr. Harckham regularly represents and advises corporate policyholders in insurance coverage matters. He has successfully litigated, arbitrated and settled hundreds of complex coverage claims. His areas of particular expertise include property loss, business interruption, directors and officers liability, construction, professional liability and general liability claims. Mr. Harckham also founded two Anderson Kill non-legal subsidiaries: Anderson Kill Insurance Services, LLC, and Anderson Kill Loss Advisors, LLC. Those companies provide insurance consulting and property and business interruption loss quantification and settlement services.

8 Today s Panelists Ronald J. Papa, President, National Fire Adjusters Ron Papa is the President and Chief Executive Officer of National Fire Adjustment Co., Inc., a public insurance adjusting firm. Ron received his Bachelor of Science Business degree at Niagara University, and his Senior Professional Public Adjuster (SPPA) accreditation at the University of Iowa. He is certified by the New York State Insurance Department as an educator for Continuing Education courses in the Insurance field, and served on the NYSID panel to review the examination questions for public adjusters, independent adjusters, insurance agents and brokers. Mr. Papa s areas of expertise include commercial and residential claim settlements, first party and business income property appraisals. Mr. Papa belongs to several Associations, including the National Association of Public Insurance Adjusters (NAPIA) and the New York Public Adjusters Association (NYPAA). With NAPIA, he received their Person of the Year Award, and served as Past President. He has written several articles including the topics of Actual Cash Value, Replacement Cost, and Business Income. Ron has given numerous presentations regarding Public Adjusting, Broad Evidence, Business Interruption, Extra Expense, etc. He recently addressed the National Association of Insurance Commissioners on the handling of catastrophic claims. NFA won an award from the Better Business Bureau for marketplace excellence in ethics, appropriately called the Torch Award!

9 Today s Panelists Neal Novak, Regional Manager, Alex N. Sill Company Loss Consultants and Appraisers Neal Novak s experience includes working both on behalf of the policyholder and insurance companies, agents and brokers. While with Coopers & Lybrand and later with Deloitte & Touche, he provided services on major, complex claims in support of their global clients. Since becoming a public adjuster in 1984, Neal has provided claims management services to a variety of individuals, companies and institutions.

10 Today s Panelists Marvin Milton, Senior Vice President, Swerling Milton Winnick Public Insurance Adjusters MARVIN MILTON, SPPA, FPPA is currently a Senior Vice President at Swerling Milton Winnick in Wellesley, MA. Since 2000, he is also Of Counsel at Anderson Kill & Olick PC. Marvin has been a Public Insurance Adjuster since His professional activities include: Lecturer for the Independent Insurance Agents of Massachusetts on Condominium Insurance and Loss Adjustments; Author of articles on insurance subjects which have appeared in National Publications; Lecturer on Business Interruption Insurance for the Northeastern University Insurance Institute; Member of the Commercial Lines Industry Liaison Panel, ISO. Marvin graduated from Stanford University and has a law degree from Harvard Law School. He was designated in 1997 as Person of the Year by National Assoc. of Public Insurance Adjusters.

11 Finley Harckham, Shareholder, Anderson Kill & Olick P.C. Dave Bradford- Advisen Ltd. Based upon your experience, do you expect Sandy coverage claims to go smoothly Weren t the flood exclusion issues sorted out in the courts following Katrina? In light of the uncertainty, is there advice for policyholders in anticipation of problems? Is the flood exclusion the only one policyholders need to be concerned about? What rights do policyholders have if delayed insurance payments result in additional loss or damage?

12 Superstorm Sandy Coverage Anti-concurrent Causation Clauses ISO Form: Issues We will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. 12

13 Ronald J. Papa, President, National Fire Adjusters Dave Bradford- Advisen Ltd. If a company doesn t have flood coverage, might there still be coverage elsewhere for Sandy losses? What if a company doesn t make the repairs after receiving a claims settlement? Where are the possible coverage overlaps? What if two causes of loss - one covered and one not result in damage?

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15 Boiler & Machinery AKA Breakdown of Equipment Inland Marine Floater Coverage EDP

16 Wind v Flood Fire & Explosion Off Premises Service Interruption Power -10 Miles Flood v Named Storm Building, Unscheduled Personal Property, Stock, Fixtures, Improvements & Betterments Inland Marine - Vehicles

17 Q. If I have $500,000 deductible for Flood do I need to max out the National Flood policy before making claim on the second layer coverage? A. Not necessarily. Several things may be covered to help meet the deductible that might not be covered by National Flood

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21 Neal Novak, Regional Manager, Dave Bradford- Advisen Ltd. Alex N. Sill Company Loss Consultants and Appraisers Please explain how Business Interruption losses are covered as they relate to Flood (i.e. FEMA policy) vs. non-flood perils. How about as the result of power outages? State and local governments ordered evacuation of some locations before the storm, and restricted access to many others following the storm. What types of losses have been incurred, which policyholders are covered, and what are some of the important issues? Many office and apartment buildings in lower Manhattan and elsewhere were flooded by storm surge. As a result, there has been extensive damage done to the mechanicals, etc. and many tenants have vacated. How can a landlord collect for loss of rents? Is there any insurance coverage for a business that has lost income due to either its supply chain or customer chain being interrupted due to storm damage to their facilities, even it the primary business did not suffer any direct damage? If a business has both flood damage and wind damage, how does that affect the business interruption claim?

22 Marvin Milton, Senior Vice President, Swerling Milton Winnick Public Insurance Adjusters Dave Bradford- Advisen Ltd. What are the critical first steps for policyholders to take to pursue coverage? How should the claim be presented to the insurance company? What should policyholders do if they are ignored by the insurer? Do policyholders have to wait until every aspect of their claim is resolved in order to get payments? What should policyholders do if their claims are denied in whole or in part?

23 Finley Harckham, Shareholder, Anderson Kill & Olick P.C. Dave Bradford- Advisen Ltd. If a claim is denied, what are the policyholder s options? What about state insurance departments, can they help to resolve claims?

24 Q&A Dave Bradford- Advisen Ltd. Finley Harckham, Shareholder, Anderson Kill & Olick P.C. Ronald J. Papa, President, National Fire Adjusters Neal Novak, Regional Manager, Alex N. Sill Company Loss Consultants and Appraisers Marvin Milton, Senior Vice President, Swerling Milton Winnick Public Insurance Adjusters

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