The vast majority of
businesses purchase commercial property insurance. Depending upon the type of
coverage bought, this insurance can cover loss or damage to insured property, time element losses, research and development, public relations costs, loss adjustment expenses, loss mitigation and many other items.
To both preserve and maximiz e this coverage,
develop a checklist
of certain action items to address with your property insurance companies
(including your excess insurance companies) that includes the following:
Time requirements to
rebuild or replace: Similar to the
point above, see if there
is a deadline by which policy seeks to have the rebuilding or replacement of the affected property completed.
Preservation of evidence:
Sort out
in writing how evidence is to
be preserved if destructive testing or
immediate remedial work needs to be undertaken.
Loss mitigation: Address in writing the loss mitigation steps you intend to take. If there is no
time to
do this in advance, then address it in writing
soon thereafter, memorializ ing the urgent conditions that required you
to act immediately.
Demands for partial payments: Some policies have express provisions requiring the
insurance company to make partial payments or claim advances. Invoke these clauses so that cash flow issues are
ameliorated.
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