RESPONDING TO LARGE LOSS CLAIMS

A claims, expert, and counsel perspective

www.theclm.org

Claim Example #1

The Marina Fire

www.theclm.org

Vessel Fire Spreads to Multiple Yachts at Miami Beach Marina

www.theclm.org

• Over $5 million in total damage• 5 yachts burned- 3 were constructive total loss• PD to the marina• Personal injury to occupants

www.theclm.org

Claim Example #1

• You receive notice from your insured immediately following loss

• Your insured is the primary cause of the loss & causes additional loss to third parties

• Your team controls the majority of the scene & leads all inspections

• Potential liability & potential recovery

www.theclm.org

• Perform preliminary non-destructive inspection:• Conduct interviews. What was damaged? What work was performed by my

insured prior to the reported incidents

• Preserve the evidence: • (e.g. Wrapping, transporting, & storing)

• Identify and place all parties involved on notice: • Propose/Confirm inspection of evidence dates to all parties involved.

• Establish protocol for joint inspection: • Include date, start/end time, location, number of days and agreed upon rules.• Confirm protocol with all parties. • Confirm Laboratory work (X-rays, SEM, ultrasound)

• Conduct inspection and reiterate ground rules. • Maintain inspection’s pace unless there are objections. Secure evidence after

inspection until further notice. Report observations to client.

www.theclm.org

Claim Example #2

The Fuel Farm Fire

www.theclm.org

Sudden Pump Line Explosion Causes Massive Jet Fuel Fire

www.theclm.org

• $6 million in PD• 70,000 lost Grade A Jet Fuel• 162 cancelled flights• Over $20 million in business interruption claimed

www.theclm.org

Claim Example #2

• You receive notice from another party after passage of some time

• Your insured likely “nominal party”• Not immediate cause of loss, but may have

collateral contribution• Your team does not control the scene

www.theclm.org

• Find out what was damaged and what work was performed by my insured prior to the reported incident

• Review the protocol that was sent out and address any issues I may have with the wording

• Confirm my attendance and attend the joint inspection of evidence. Gather as much information as possible

• Determine who the other parties are and try to obtain information from them

• Request a list of the items that were collected as evidence• Request that part of the evidence be retained/secured if it will

help in my investigation.• Be careful not to reveal your findings to the other parties• Report observations to the client or write a report

www.theclm.org

Crane Collapse at Port of Jacksonville

www.theclm.org

Thanks to our sponsor: